According to data from research firm Emarketer, Elon Musk's social media platform X is expected to see its first year of advertising revenue growth since he acquired it in 2022. The platform's U.S. ad revenue is projected to increase by 17.5% to $1.31 billion in 2025, with global ad sales estimated to rise by 16.5% to $2.26 billion.

The growth in advertising revenue is partly attributed to the return of brands to X, coinciding with Musk's increased influence within the Trump administration due to his role in the U.S. Department of Government Efficiency. Pressure from potential legal or financial repercussions may also be driving advertisers to spend on X.

Jasmine Enberg, Emarketer's principal analyst, mentioned that X has successfully attracted small and medium-sized businesses, a segment it had previously struggled with. Competition in the ad market is fierce, with social media platforms like Instagram and TikTok vying for a larger share.

Despite the projected growth, X's ad business remains smaller than when Musk acquired it for $44 billion in 2022. As a private company, X does not disclose financial information. In 2021, when it was publicly traded, the platform reported ad revenue of $4.51 billion.

X appointed Linda Yaccarino as CEO in 2023 but did not respond immediately to requests for comment.Analyst predictions suggest that changes brought by the new administration, such as U.S. tariffs and economic uncertainties, may impact the ad market's growth. Brokerage firm MoffettNathanson lowered its U.S. advertising growth forecast due to the uncertainties created by tariff announcements and federal job cuts.