X's Ad Business Under Yaccarino: Progress and Future Challenges

Linda Yaccarino's Impact on X's Advertising Revenue

Linda Yaccarino’s period as CEO of X, spanning approximately two years, demonstrably influenced the platform’s advertising sector, according to recent data from the ad intelligence company Guideline. The analysis suggests that she is leaving X in a more favorable position regarding advertisers than when she initially assumed the role.

Growth in Ad Spending

Throughout the first half of 2025, ad expenditure in the United States increased by 62% compared to the previous year, as reported by Guideline. Furthermore, Yaccarino had previously stated that 96% of X’s advertisers had returned to the platform by May 2025.

A Challenging Recovery

Despite improvements, the turnaround of X’s advertising business was not immediate and continues to present challenges. The company’s reliance on advertising revenue remains significant, as alternative income streams are still developing.

X Premium subscriptions currently contribute only a small percentage to overall revenue. The planned launch of X Money, a comprehensive payments service, has also yet to materialize.

Initial Challenges Following the Takeover

Yaccarino joined X in June 2023, following a tenure of nearly 12 years at NBCUniversal, where she served as chairman of global advertising and partnerships. At that time, the platform, formerly known as Twitter, was experiencing a substantial decline in advertising revenue.

The initial reduction in ad spending was largely triggered by Elon Musk’s acquisition of the network in October 2022. Staff reductions, particularly within the Trust and Safety division, led to an increase in misinformation and hate speech, prompting advertisers to withdraw their support.

Reports indicated that 14 of the top 30 advertisers ceased all advertising on the platform, with four others reducing their spending by 92% to 98.7% around the same period, as noted by Reuters.

Significant Revenue Erosion

Data from Guideline revealed that 89% of U.S. advertising dollars allocated to Twitter/X were lost over the two-year period between Q3 2022 and Q3 2024. These declines actually began in Q2 2022, following the disclosure of Musk’s 9.4% stake in the company, according to information provided to TechCrunch.

By early 2023, reports indicated that over 500 advertisers had left the platform, and fourth-quarter revenues had decreased by 35%.

Internal documents cited by The New York Times showed a 59% year-over-year decline in U.S. ad revenue for the five weeks between April 1 and the first week of May 2023, totaling $88 million. Weekly sales projections were also down by as much as 30%. X attempted to attract advertisers back by offering ad credits.

Efforts to Restore Confidence

There were indications that Yaccarino was actively working to address these issues. A year after joining X, The Times reported that 65% of advertisers had returned, based on recordings of internal company meetings.

In August 2023, Yaccarino stated that X’s operational run rate was approaching “break even.”

Renewed Challenges and Boycotts

However, the situation deteriorated again later in the year with an advertiser boycott. In November 2023, major brands, including Apple, Disney, and IBM, paused their ad spending on X following Musk’s endorsement of an antisemitic post.

eMarketer estimates indicated that X was already on track for a nearly 55% year-over-year decline in worldwide ad spending, and the boycott threatened to exacerbate the situation.

Musk's Controversial Statements

Musk’s own statements also presented challenges for Yaccarino. He famously told departing advertisers to “go f— yourself,” characterizing their actions as blackmail. When this approach proved ineffective, X initiated legal action, alleging an “illegal boycott.” (The lawsuit was expanded in early 2025 to include additional advertisers, such as LEGO and Shell.)

The threat of litigation proved effective, with companies like Verizon and Ralph Lauren resuming advertising on the platform after receiving legal notices, as reported by The Wall Street Journal. The World Federation of Advertisers (WFA) also suspended the operations of its Global Alliance for Responsible Media (GARM) nonprofit following the lawsuit.

Recent Gains and Brand Safety Measures

Guideline’s data also shows an increase in U.S. ad spending since December 2024 – the first such increase since Musk’s acquisition. Spending rose by 37.7% from Q3 2024 to Q4 2024, influenced by the U.S. presidential elections.

During Yaccarino’s leadership, X implemented measures to enhance brand safety, partnering with adtech companies DoubleVerify and Integral Ad Science (IAS) to alert advertisers to potentially inappropriate content. The platform also provided brands with tools to adjust ad sensitivity settings, with more restrictive placements costing more.

X also introduced options for advertisers to display their ads alongside a curated selection of content creators.

Ongoing Concerns and Yaccarino's Departure

Despite these efforts, X remains a controversial platform regarding ad safety. Recent issues, such as antisemitic outbursts from the AI bot Grok, have raised further concerns.

Yaccarino’s departure, while reportedly made prior to the Grok incident, occurs as the platform continues to navigate these challenges.