After global and India ad slump, can X pick up pace in 2025?

Elon Musk’s rebranded social media platform X, formerly known as Twitter, continues to grapple with advertiser distrust, both globally and in India. Once a default choice for brands seeking immediacy and scale, the platform has seen spending collapse amid concerns over brand safety, content moderation, and management unpredictability.

In India, the impact has been severe. Regulatory filings show that Twitter Communications India’s operating revenue collapsed by nearly 90%, falling from around Rs 208 crore in FY23 to just Rs 21 crore in FY24. With advertising - its primary revenue stream among roughly 25 million users shifting rapidly to rival platforms, the company’s profitability also took a hit. Net profit slid to ?3 crore in FY24, down from ?30 crore in the previous year.

Globally, X’s ad sales are also under pressure. According to reports, advertisers spent $744 million on the platform in the first half of 2024, 24% lower than the $982 million spent a year earlier. Kantar research shows a net 26% of marketers plan to further cut spending on X in 2025. According to reports, the downturn followed Musk’s loosening of content policies and the dismantling of moderation teams, moves that triggered an exodus of major advertisers. Some brands have only resumed spending reluctantly, either due to political considerations after Musk became an adviser to Donald Trump, or to avoid potential litigation as Musk publicly pressured advertisers to return.

Meanwhile, Musk has sought to rework the platform’s ad offering by eliminating hashtags in promotions and introducing a pricing model based on vertical screen space. The changes are aimed at creating a cleaner, “premium” ad experience, but their effectiveness in winning back advertiser trust remains uncertain.

Rohit Ohri, Founder of Ohriginal suggested that while legacy advertisers like Disney and Apple have cut their X spends by over 95%. In their place, digital-first players and D2C startups—brands spending in the single-digit millions—are keeping the platform alive because they only care about cost-per-conversion.

The India Picture
Still, there are signs of a tentative rebound. Emarketer projects X’s US ad revenue to grow 17.5% in 2025 to $1.31 billion, with global revenue rising 16.5% to $2.26 billion. However, that remains far below its pre-acquisition peak of $4.5 billion in 2021. Emarketer estimates that even by 2027, global ad sales will reach only $2.6 billion—still 42% lower than 2021 levels.

But how much of that recovery will be fueled by India? Industry observers believe the country’s contribution is likely to remain minimal.

“India’s expected 15% digital ad market surge this year could contribute modestly, despite X’s 90% revenue drop in FY24, but certainly away from recovery,” said Rachit Malik, VP-Programmatic, CyberMedia.

Meanwhile, Sanket Savaliya, Senior Brand Manager at MGID Inc highlighted that most advertisers in India today treat X as a supplementary platform to their digital media mix rather than a primary performance-driven channel.

“In India, we may see selective growth, but it will likely be slower and category-specific. Some segments — especially political advertising, media, OTT platforms, fintech, and moment marketing during events like cricket or elections — could contribute to X’s revenue streams here,” he said, adding that a portion of the 17% global growth can come from India, but it will be modest and campaign-specific, not ecosystem-wide.

Experts also noted that the platform is not well suited for FMCG, lifestyle or retail brands owing to its dynamic nature. “X remains relevant for categories tied to real-time information and conversation: politics, finance, sports, tech news, and entertainment trends. In contrast, consumer-focused categories like lifestyle, FMCG, or retail find much higher returns on platforms that prioritize reach, visual creativity, and brand safety,” said Yash Chandiramani, Founder and Chief Strategist, Admatazz.

Sahil Chopra, Founder and CEO, iCubesWire shared that there have been surveys that highlight that confidence levels in the platform are extremely low. He added that with the introduction of spicy mode, which allows the creation of uncensored content, brands are likely to be cautious about using the platform. It risks ads being shown next to controversial material. For brands, reputation is everything, and X is faltering in that regard.

“Advertisers might not be missing out on much by avoiding X. The platform’s reach in India is dwindling against giants like Meta, YouTube or even OTT platforms. These channels have access to wider audiences and have far more reliable tools for measurement and targeting,” Chopra added.

Yet, X still offers something few rivals can match - its ability to shape cultural moments. “Advertisers aren’t missing out on raw reach by avoiding X—they’re missing out on cultural heat,” said Ohri. “Engagement rates on X may be just 0.03%, but when a moment trends, it can set the agenda for the entire country.”

Rivals
In contrast, rivals are surging ahead. Meta Platforms’ Indian arm posted a 43% jump in net profit to ?504.9 crore in FY24, with operational revenue up 9.3% at ?3,034.8 crore. Gross ad revenue for Facebook India climbed 24% year-on-year to Rs 22,730.7 crore, driven by the platform’s massive reach across demographics—from metros to smaller towns. Combined with Instagram, Meta remains a dominant force in India’s ad market, which continues to expand rapidly.

Google and Meta together crossed ?50,000 crore in gross revenue for the first time in FY24.

Data further highlights X’s weak positioning. As of early 2025, YouTube leads India’s digital ad-reachable audience with 491 million users, followed by Instagram (414 million) and Facebook (384 million). X lags far behind with just 24.1 million, underscoring why most Indian advertisers continue to prioritize Google- and Meta-owned platforms for scale, leaving X struggling to stay relevant.

Malik said, “Meta and YouTube, strong competitors to each other. X isn't close this year. YouTube’s share grows via Google’s programmatic push through DV360, as revealed at Google Marketing Live 2025, helping brands scale effectively. X has to play catchup on performance and branding.”

Chopra further explained that when compared with Meta or YouTube, the difference is significant. “Each platform has its own strengths like YouTube continues to deliver strong ROI through video campaigns; Meta’s Instagram works wonders for engagement. However, X feels inconsistent and doesn’t offer predictable engagement.”

How can X regain advertisers' trust?
For X to regain advertisers’ trust, industry experts point to a combination of stronger brand-safety measures, consistent content moderation, and greater transparency in ad performance.

Chandiramani said, “to stabilize and rebuild trust, X should invest in stronger content moderation, dedicated local support and advertiser relation teams instead of a central model and improved measurement tools for attribution.”

Savaliya added that unless X addresses brand safety concerns, improves ad tools, and restores confidence among agencies and CMOs, ad spending in India will remain cautious rather than aggressive.

Ohri further explained that for X to win back India, it needs to rebuild its gutted ad sales team, re-establish brand safety, and deliver better measurement. With India’s ad revenue down from over ?200 crore to just about ?21 crore, the trust deficit isn’t cosmetic—it’s existential.

According to him, X’s journey in India today is a paradox. On the one hand, revenues have fallen off a cliff—down nearly 90% in a single year—and advertisers have migrated to safer, more scalable platforms like Meta and YouTube. On the other, X still holds a unique kind of cultural currency. It remains the place where breaking news collides with public sentiment, he said, often shaping the narrative far beyond its actual user base. For most brands, that may not justify a return just yet.

“But in a market hurtling toward ?1.5 lakh crore in digital ad spend, even a modest rebound could make X a meaningful niche player again—if it can fix trust, rebuild local support, and remind marketers why immediacy still matters,” Ohri concluded.