X shifts focus to small businesses amidst advertiser exodus

According to a recent Financial Times report, X is shifting its focus towards small and medium-sized advertisers in an effort to boost revenue. This strategic move comes after the company's owner, Elon Musk, created controversy by alienating major brands that were leaving X due to concerns over antisemitic content. Musk's confrontational remarks during an interview at the New York Times DealBook Summit raised doubts about the company's future, as he warned that the loss of big advertisers could lead to X's demise.

Despite Musk's grim outlook, a company representative told the FT that catering to small and medium businesses has always been a significant aspect of their strategy. The representative emphasized that they had previously underestimated the importance of these businesses and now plan to further prioritize them. Musk attempted to clarify his earlier statements, but the fallout appears to be lasting.

Nevertheless, X is actively exploring alternative sources of ad revenue. The company has entered into a partnership with marketing firm JumpCrew to outsource some ad sales, specifically targeting small and medium-sized businesses. The FT report indicates that X is accelerating its efforts to reach this demographic. While CEO Linda Yaccarino has faced pressure to resign and protect her reputation, she has publicly supported Musk, emphasizing the company's commitment to its principles and mission.