On Friday, X announced the launch of AI-powered advertising solutions that automate ad development and performance analysis.
Two new capabilities that will be gradually made available to advertisers rely on Grok, X’s in-house AI assistant, to produce campaign insights, ad language, and images with little assistance from humans.
“Prefill with Grok” is a brand-new advertising creation tool. Users can enter the URL of their website, and Grok will evaluate the material to create an ad that is ready to use, saving them the trouble of creating creatives by hand. Before launching the campaign, advertisers can make necessary changes to the copy or replace the visuals.
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According to the company’s statement, the second new tool, “Analyze Campaign with Grok,” offers automatic campaign success measurement, “enabling you to optimize your impact, modify your creative, and refine your targeting—all in a fraction of the time.”
In the digital economy, AI-powered advertising has long been prevalent. Similar to what X has developed, Google, Meta, TikTok, Amazon, and Reddit have all implemented tools for ad creation and campaign automation.
X is relying on AI-powered solutions to help revitalize its advertising division, which has faltered since Elon Musk purchased the platform, formerly known as Twitter, in 2022. Due to worries about Musk’s slack approach to content control, major corporations like Disney, Apple, and Coca-Cola reduced their spending.
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X’s ad revenue has not yet entirely recovered, despite the fact that some advertisers are coming back to the platform. MediaRadar predicts that its U.S. ad revenue in 2024 was around $1.4 billion, a 28% decrease from the year before.
However, X and marketers continue to have a tense relationship. Nestlé, Colgate-Palmolive, Lego, Shell, and a few other companies were joined by X to a lawsuit earlier this month regarding a purported advertising boycott of the platform.
Other interactions, though, also show indications of remediation. According to a Wall Street Journal article published Wednesday, IPG, whose planned merger with Omnicom will create the largest advertising holdco in the world, has inked a new yearly agreement with X for possible ad spending.
Convincing advertisers that its AI-powered tools can produce outcomes without the brand safety issues that first caused many to flee will now be X’s problem.
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