Billionaire entrepreneur and owner of X (formerly Twitter), Elon Musk, has unveiled a major shift in the platform’s advertising model — ads will soon be priced based on how much vertical space they occupy on users’ screens, rather than traditional metrics like impressions, clicks, or engagement.
“X is moving to charging for ads based on vertical size,” Musk posted. “So an ad that takes up the whole screen would cost more than an ad that takes up 1/4 of the screen. Otherwise, the incentive is to create giant ads that impair the user experience.”
Why It Matters
Currently, advertisers on X pay based on interactions or visibility, which often allows large-format ads to dominate the screen without proportionally higher costs. This system, Musk argues, encourages disruptive ad designs. By introducing pricing tied to screen real estate, the company aims to promote cleaner, more user-friendly content.
This change is part of Musk’s broader effort to reshape the platform into a balanced space where monetization doesn’t come at the cost of user satisfaction.
Timing and Context
The announcement comes at a time when X is rebuilding advertiser trust. Several major brands are gradually returning to the platform, especially following Musk’s antitrust lawsuit against the Global Alliance for Responsible Media (GARM), which he accuses of leading an “illegal boycott” of X.
Although U.S. ad spending on the platform dipped by 2% in early 2025, leading advertising giants like WPP and Omnicom have reportedly agreed to annual spending targets, reflecting a renewed — if cautious — confidence in X’s evolving ecosystem.
The Bigger Picture: From Social Media to “Everything App”
The update to the ad model coincides with broader structural changes at X. Recently, Musk’s AI startup xAI acquired the social platform in a high-profile merger that valued the combined entity at $80 billion. This consolidation brings together massive datasets, engineering talent, and advanced AI capabilities, especially in ad targeting and content personalization.
With these advancements, Musk is pushing to transform X into a super-app — blending social media, video streaming, digital payments, and artificial intelligence under one roof.
What This Means for Advertisers
Advertisers may now need to rethink their design strategies. Eye-catching, full-screen ads will still be allowed — but will come at a premium. Smaller, less intrusive formats may offer better value moving forward.
As Musk continues to mold X into his vision of an “everything app”, this move suggests a more calculated balance between user experience and advertising profit — something platforms like Facebook and TikTok have long struggled to perfect.