X Offers Ad Credit Matching to Shopify Merchants

A few months ago, sources pointed towards a significant financial drawback for X, with the saving grace believed to stem from ad revenue during the U.S. election and the Olympics. Yet, Elon Musk's personal social network seems to be scrambling for money as we enter the last quarter of the year. As part of this financial scramble, X has been promoting X Premium through full-screen ads, trying to encourage more users to use the app's paid version. Furthermore, X has unveiled a new promotional campaign in collaboration with Shopify, promising to match the ad expenses of Shopify merchants during the holiday season. However, this promotional campaign underscores X's difficult financial situation, considering free services are seldom offered when in high demand. Musk's controversial moderations and increased presence on the app, have driven many brands away, as many are apprehensive about the app's audience outreach, causing X to face a potentially significant loss. Currently, X is projected to generate around $2.9 billion in total revenue for 2024, marking a staggering decline from Twitter's $4.4 billion in 2022. Musk's grand plans of turning the platform into a billion-user hub has thus far been ineffective. X's already precarious financial situation is further impacted by the $1.2 billion in annual loan repayments that Musk introduced when acquiring the app. Even after downsizing, X's finances look bleak, and the company faces potential bankruptcy if its ad business doesn't recover. Despite this, reports suggest that major advertisers are considering returning to X, possibly to maintain favour with Musk, whose influence is expected to greatly impact Trump's administration. However, winning back ad partners remains a challenge for the company. For Shopify merchants, this presents an opportunity to expand their X campaigns for free.