X's latest rule: brands required to invest $1,000 monthly in ads

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X's latest rule: brands required to invest $1,000 monthly in ads
X, the previous Twitter, depends largely on advertisements, similar to many other websites, social media platforms, and media outlets. However, advertising on X has decreased since Elon Musk took over the company, mainly due to concerns about content moderation. Many companies are worried about their ads appearing next to content that goes against their values.

Despite this, Elon Musk and his team are working on attracting more advertisers by cutting ad prices. They also want verified brands to pay more for displaying their ads. According to a report from The Wall Street Journal, the company has warned brands that they'll lose their verified status unless they meet specific spending thresholds.

Starting August 7, if brands haven't spent at least $1,000 on ads in the last 30 days or $6,000 in the last 180 days, their accounts will lose the gold check mark that shows they genuinely represent their brand, as per an email from X.

Elon Musk responded to the report in a tweet, saying that brands can simply pay for a verified organization subscription instead, which costs $1,000 per month, making it practically the same. However, this might be a burden for small brands, NGOs, and cultural organizations with lower budgets.


Musk justified this decision by stating that the goal is to set a moderately high standard for verified organizations. The company aims for organizations to be of a non-trivial size to qualify and to prevent scammers from creating millions of accounts.

To boost profitability after a 50% revenue drop, X is focusing more on its main source of income, advertising. The Wall Street Journal also mentions that X offers discounts on some ad slots, such as a 50% discount for all new bookings until July 31. This move allows advertisers to reach more audiences during important moments, like sporting events.
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