X’s ad business improved under departing CEO Linda Yaccarino, but it’s still tough times ahead

Linda Yaccarino’s two-year tenure as CEO of X (formerly Twitter) has concluded, leaving behind a complex legacy marked by significant improvements in the platform’s advertising business, yet still facing formidable challenges. New data from ad intelligence firm Guideline indicates that Yaccarino has left X in a stronger position with advertisers than she found it.

During her leadership, X saw a notable resurgence in its U.S. ad spending, which climbed 62% year-over-year in the first half of 2025, according to Guideline. Furthermore, Yaccarino herself had previously stated that an impressive 96% of X’s advertisers had returned to the platform as of May 2025. These figures suggest a successful effort in rebuilding trust and engagement with advertising partners.

However, the journey to this turnaround was arduous and the path ahead remains turbulent. X’s reliance on advertising revenue is still critical, as other potential revenue streams, such as X Premium subscriptions, constitute only a small fraction of its overall business. Broader ambitions, including the launch of the X Money payments service, are yet to materialize, underscoring the ongoing importance of ad sales for the company’s profitability.

Yaccarino joined X in June 2023, stepping in during a period of severe advertising downturn. The decline was largely precipitated by Elon Musk’s acquisition of the company in October 2022, which led to significant staff reductions, including in its critical Trust and Safety division. This resulted in a proliferation of misinformation and hate speech, causing many advertisers to flee the platform. Reuters reported that 14 of the top 30 advertisers had ceased all spending, while four others drastically cut their budgets by 92% to 98.7%.

Guideline’s data further illustrates the severity of the initial exodus, revealing that 89% of Twitter/X’s U.S. ad dollars were eroded between Q3 2022 and Q3 2024. Reports in early 2023 indicated that over 500 advertisers had abandoned the platform, leading to a 35% drop in fourth-quarter revenues. The New York Times also reported a 59% year-over-year decline in X’s U.S. ad business to $88 million between April and May 2023, with weekly sales projections falling by as much as 30%.

In response, X attempted to re-engage advertisers with incentives like ad credits. Under Yaccarino’s guidance, there were clear signs of a gradual recovery. A year into her tenure, the New York Times noted that 65% of advertisers had returned. Yaccarino also claimed in August 2023 that X’s operational run rate was nearing “break even.”

Despite these efforts, the platform faced another major blow in November 2023, when an advertiser boycott ensued after Elon Musk endorsed an antisemitic post. Major brands, including Apple, Disney, and IBM, paused their advertising. This boycott threatened to exacerbate an already challenging situation, with eMarketer estimating X was on track for a nearly 55% year-over-year decline in worldwide ad spending.

Musk’s confrontational stance, famously telling advertisers to “go f— yourself,” initially intensified the crisis. However, X later pursued litigation against advertising groups, including the World Federation of Advertisers (WFA) and its Global Alliance for Responsible Media (GARM), accusing them of an “illegal boycott.” This legal pressure appeared to yield results, with companies like Verizon and Ralph Lauren resuming advertising following legal threats. The WFA also suspended GARM’s operations in response to the lawsuit.

Guideline’s data further confirms an increase in U.S. ad spend since December 2024, marking the first sustained rise since Musk’s acquisition. Spending jumped 37.7% from Q3 2024 to Q4 2024, partly influenced by the U.S. presidential elections.

Throughout her leadership, Yaccarino also focused on enhancing brand safety on the platform. X partnered with adtech companies DoubleVerify and Integral Ad Science (IAS) to provide advertisers with tools to ensure their ads were not placed alongside inappropriate content. The company also introduced options for advertisers to adjust content sensitivity and offered curated lists of content creators for ad placement.

However, X continues to grapple with controversies surrounding ad safety and content moderation. Most recently, the platform’s AI bot, Grok, experienced antisemitic outbursts in July 2025, leading to its temporary offline status. While Yaccarino’s decision to step down was reportedly made prior to this incident, it underscores the persistent challenges in maintaining a safe and appealing environment for advertisers on the platform.