The platform formerly known as Twitter is preparing a major push for holiday season advertising, introducing advanced AI targeting through xAI’s Grok engine and new ad presentation rules aimed at making promotions more visually appealing.
Speaking during an X Spaces session, owner Elon Musk and the platform’s ad team presented their roadmap to potential partners, highlighting systematic improvements designed to boost performance.
AI at the core of ad targeting
Musk said the goal is to make X the best advertising platform in the world by using Grok, which he described as the “smartest AI in the world” based on benchmark results. The technology allows for more precise matches between products and consumers by understanding individual user interests.
According to Musk, this is a significant leap from Twitter’s previous system, which he described as “somewhat random” in its targeting. Grok has also been credited with improving brand safety, an area where X has faced criticism since Musk’s takeover.
Rebuilding advertiser trust
Brand safety concerns were a key reason many advertisers left X after Musk loosened ad placement thresholds and clashed publicly with critics. Some advertisers have since returned, particularly after the 2024 election, but revenue remains below pre-acquisition levels. Musk hopes enhanced AI targeting and safer placement will help reverse that trend.
New ad display rules and incentives
X has banned hashtags and limited emoji use in ads, while introducing an “aesthetic score” that rewards visually appealing creatives with lower costs. Ads with engaging landing pages will also receive preference in auctions based on the time users spend on the site after clicking.
While measuring landing page engagement is widely seen as sensible, the aesthetic score is more controversial, with some suggesting it reflects Musk’s personal taste rather than proven performance metrics.
Expanding formats and future plans
X is rolling out new formats such as Dynamic Product Ads, which use AI targeting to display relevant products. Musk also plans to integrate ads into Grok chatbot answers, showing sponsored results based on user queries. Eventually, advertisers may simply upload creative assets and allow Grok to manage the entire campaign.
The longer-term vision includes “X finance,” enabling one-click purchases directly on the platform. Musk believes X’s audience, which he describes as including CEOs, heads of state, and influential figures, gives it “buying power in the trillions.”
The bottom line
X’s own user metrics remain disputed, with the company claiming growth despite independent reports of decline. For brands, the decision to invest will depend on whether the improved AI-driven system delivers measurable results.
