X's Advertising Business: A Turbulent Journey Under Linda Yaccarino and the Road Ahead

Linda Yaccarino's time at the helm of X, formerly Twitter, was marked by intense scrutiny, significant challenges, and, ultimately, a notable turnaround in the platform's advertising fortunes, according to recent data. Her tenure, spanning just two years, saw the social network navigate the choppy waters of advertiser boycotts, content moderation controversies, and the often unpredictable leadership style of owner Elon Musk. While her departure leaves questions about the future, data suggests she is leaving the company's core revenue stream in a better state than she found it.

When Yaccarino, a seasoned advertising executive from NBCUniversal, took over as CEO in June 2023, she inherited a business in crisis. The period following Elon Musk's acquisition of Twitter in October 2022 had been catastrophic for its advertising revenue. Musk's rapid changes, including significant staff cuts across various departments, notably the Trust and Safety division, led to widespread concerns among advertisers about the proliferation of misinformation, hate speech, and brand safety risks on the platform. Many major brands paused or entirely stopped their spending.

Reports from early 2023 painted a grim picture. More than 500 of Twitter's top advertisers had reportedly left the platform. Internal documents cited by The New York Times revealed a staggering 59% year-over-year drop in the U.S. ad business between April and early May 2023. Weekly sales projections were down by as much as 30%. The platform's ad dollars in the U.S. were eroded by a massive 89% in the two years between Q3 2022 and Q3 2024, according to data from ad intelligence firm Guideline. This decline had actually begun even earlier, in Q2 2022, following the revelation of Musk's initial stake in the company.

Yaccarino's primary mandate was clear: restore trust with advertisers and rebuild the platform's advertising business. Drawing on her deep relationships within the advertising world, she embarked on a mission to reassure brands that X could be a safe and effective place for their ad spend. This was an uphill battle, compounded by ongoing controversies and Musk's public statements, which often seemed at odds with the goal of appeasing advertisers.

Navigating the Storm: Challenges and Controversies

Yaccarino's tenure was anything but smooth. The platform continued to face challenges related to content moderation. Despite efforts to implement brand safety measures, incidents involving problematic content persisted. A major blow came in November 2023 when several high-profile brands, including Apple, Disney, and IBM, paused their advertising on X after Musk endorsed an antisemitic conspiracy theory. This boycott threatened to further cripple a business already projected by eMarketer to see a nearly 55% year-over-year decline in worldwide ad spending.

Adding to the complexity was Musk's often confrontational stance towards advertisers. In a now-infamous moment, he told advertisers who had left the platform to “go f— yourself,” accusing them of blackmail. This public defiance, while perhaps appealing to a segment of X's user base, did little to mend fences with cautious brands. Later, X took a more aggressive approach, filing lawsuits against advertising groups, alleging an “illegal boycott.” This legal pressure, according to The Wall Street Journal, reportedly led some companies, such as Verizon and Ralph Lauren, to resume advertising on the platform after receiving legal threats. The World Federation of Advertisers (WFA) also suspended its Global Alliance for Responsible Media (GARM) initiative following the lawsuit.

Image of Linda Yaccarino with Twitter birds in the background, representing the new Twitter CEO — **Image Credits:** Bryce Durbin

Strategies for Recovery

Despite these significant headwinds, Yaccarino and her team implemented several strategies aimed at winning back advertiser confidence and revenue. These included:

Brand Safety Partnerships: X partnered with adtech companies like DoubleVerify and Integral Ad Science (IAS) to provide advertisers with tools and reporting to ensure their ads were not placed alongside inappropriate content.
Flexible Ad Placement Controls: The platform introduced options allowing brands to adjust the sensitivity of where their ads appeared, offering lower costs for placements in more “relaxed” content environments and higher costs for stricter brand safety requirements.
Ad Credits and Incentives: X attempted to lure back advertisers with financial incentives, such as offering ad credits.
Creator Ad Programs: X introduced ways for advertisers to run ads alongside content from a curated list of creators, aiming to associate brands with specific, potentially safer, content streams.
Direct Engagement: Yaccarino actively engaged with advertisers and agencies, leveraging her industry connections to personally advocate for the platform and address concerns.

These efforts, combined with the passage of time since the initial turmoil and perhaps the effect of legal pressure, began to show results.

Signs of a Turnaround

Data from Guideline indicates a notable improvement in X's U.S. ad spend. After the steep declines, spending saw an increase starting in December 2024 — the first time since Musk's acquisition. From Q3 2024 to Q4 2024, spending was up 37.7%, partly influenced by the U.S. presidential elections. More significantly, U.S. ad spending was up 62% year-over-year in the first half of 2025. Yaccarino herself had claimed in May 2025 that 96% of X's advertisers had returned to the platform.

While these figures represent a significant rebound from the depths of the ad crisis, they don't tell the whole story. The 62% year-over-year growth in H1 2025 is measured against a severely depressed baseline from H1 2024. The platform's ad revenue is still likely far below its peak under previous ownership. Yaccarino's claim of 96% advertiser return also needs context; the volume of spending from these returning advertisers might be significantly lower than before.

The Path Ahead: Still Turbulent

Despite the progress made under Yaccarino, X's advertising business remains turbulent and faces significant ongoing challenges. The core issue of brand safety persists. Just recently, the platform's AI bot, Grok, experienced antisemitic outbursts, requiring it to be taken offline. While Yaccarino's departure was reportedly decided before this specific incident, it underscores the inherent risks brands face advertising on a platform where content moderation and AI behavior can be unpredictable.

Furthermore, X is heavily reliant on advertising revenue. While Elon Musk has ambitious plans to transform X into an “everything app” with diverse revenue streams, including subscriptions (X Premium) and financial services (X Money), these initiatives are still in their nascent stages. X Premium subscriptions currently account for only a small portion of the business, and the broader ambitions around a payments service have not yet fully launched. This means the health of the advertising business is critical to X's profitability and long-term viability.

Yaccarino's departure leaves a void in leadership specifically focused on the advertising side of the business. Her experience and relationships were key assets in navigating the post-acquisition crisis. Without her dedicated focus, and with Musk's attention often divided across his many ventures and prone to generating controversy, maintaining the recent advertising momentum could prove challenging.

Conclusion

Linda Yaccarino's two years at X were a period of intense effort to stabilize and rebuild a core business that had been severely damaged. Data suggests she achieved a degree of success, bringing advertisers back and overseeing a significant increase in U.S. ad spending compared to the lows of 2023-2024. She is leaving X in a better position with its advertisers than when she arrived, according to Guideline.

However, the platform's ad business is far from being out of the woods. The fundamental challenges of content moderation, brand safety, and the unpredictable nature of its ownership remain. The reliance on advertising revenue is still high, while alternative income streams are unproven at scale. Yaccarino's departure adds another layer of uncertainty to an already complex situation. The road ahead for X's advertising business is likely to remain turbulent, requiring continued effort to build trust and provide a stable environment for brands.