X’s CPM Crashes by 75% Under Elon Musk’s Tenure

X, the platform formerly known as Twitter, has seen its prospects plummet ever since Elon Musk took the helm. It turns out that the platform’s CPM, which is to say the cost to reach 1,000 impressions on the platform, went from $5.77 in September 2022 to just 0.65 in August 2023, representing a 75% decrease with all things having been considered and taken into account.

It might seem like X is becoming more affordable, but in spite of the fact that this is the case, this is actually an indication of how little anyone wants to advertise on the platform in the first place. With all of that having been said and now out of the way, it is important to note that X now has the single lowest CPMs of any platform out there, even though its CPM has risen to $1.2 in ensuing months.

YouTube’s CPM, by comparison, is around $3.05, which is still on the somewhat lower end of the spectrum. This is likely due to YouTube’s massive volume of traffic because of the fact that this is the sort of thing that could potentially end up generating higher revenue despite a low CPM, something that YouTube would be doing intentionally.

TikTok has a higher CPM than YouTube, surprisingly enough, coming in at $3.45. Despite being a relatively new addition to the social media ecosystem, TikTok’s CPM is several times higher than that of X, further lending credence to the notion that Musk’s missteps have cost the company dearly.

At the very top is Meta, where it costs about $7.17 to reach 1000 impressions. Meta’s position at the top of the list is unsurprising considering it owns the largest social media platforms in the world, but it also reveals that the company has successfully managed to recover from the controversies that had been besetting it some time ago.
X is currently experiencing an advertiser boycott after Musk’s sudden tirade, with companies like Disney pulling their ad campaigns out entirely. Rather than trying to mend bridges, the embattled CEO decided to double down, essentially stating that he didn’t want to work with any company that would blackmail him with ad dollars. If the current trend continues, X may end up becoming irrelevant in the realm of social media advertising, and it will be interesting to see where things go from here on out.

X appears cheaper, yet it reflects the platform's unpopularity, as advertising demand remains consistently low.
H/T: Guptamedia.

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