X rolls out ad credit match for Shopify merchants

Elon Musk’s X, formerly Twitter, is ramping up efforts to boost revenue as it faces significant financial challenges. Despite earlier assurances that ad revenue would rebound during major events like the U.S. elections and the Olympics, the platform has struggled to recover its advertising base.

This week, the platform began promoting its subscription service, X Premium, through full-screen ads, urging more users to pay for access. Additionally, the company launched a partnership with Shopify, offering ad credits to merchants who invest in X ads.

“From now through December 1st, Shopify store owners can receive a 100% ad credit match when working with an X Ads Specialist,” the platform announced. However, these credits require a pre-committed ad spend and must be used within 30 days.

The promotion highlights the platforms' ongoing difficulties in attracting advertisers, many of whom left following Musk’s controversial policy changes and his visible use of the platform for political commentary. 

X’s estimated revenue for 2024 stands at $2.9 billion, significantly below the $4.4 billion Twitter generated in 2022 before Musk’s acquisition. The platform also faces $1.2 billion in annual loan repayments stemming from Musk’s purchase, further straining finances.

Reports indicate some advertisers are returning, potentially seeking to align with Musk ahead of Donald Trump’s second presidential term. This could offer X a lifeline, as Musk leverages political influence to stabilise the platform.

While the company has cut costs through layoffs and office closures, including its San Francisco headquarters, its future remains uncertain.