X is experimenting with a new advertising format that connects user posts directly to product promotions, starting with an internal test promoting Starlink satellite internet service. The move signals the platform's continued push to diversify revenue streams after advertisers fled following Elon Musk's takeover, and could represent a significant shift in how social media platforms monetize organic content.
X is quietly testing a new advertising product that could change how the platform monetizes user-generated content. According to reports from TechCrunch, the social media platform is trialing an ad format that connects organic posts with product promotions displayed directly beneath the original content.
The early test appears to be promoting Starlink, the satellite internet service also owned by Elon Musk. The choice to start with an internal Musk company product suggests X is beta-testing the format before rolling it out to external advertisers, a common approach when platforms want to work out technical kinks without risking paying customers.
This represents X's latest attempt to rebuild its advertising business after a tumultuous period. Since Musk acquired the platform in late 2022 for $44 billion, major advertisers including Apple, Disney, and IBM pulled spending amid concerns about content moderation and Musk's own controversial posts. The advertiser exodus reportedly cut the platform's ad revenue by nearly 60% in 2023, forcing X to explore alternative monetization strategies.
The product-linked ad format could offer advertisers a new way to reach users by piggybacking on organic conversations. If a user posts about internet connectivity issues, for instance, X could surface a Starlink ad directly below that post. This contextual targeting approach differs from traditional social media ads that appear in feeds or sidebars, instead creating a direct association between user content and commercial products.
But the format raises immediate questions about user consent and content ownership. Unlike platforms such as Instagram or TikTok where ads appear between posts from different users, X's approach appears to attach promotional content directly to individual posts. This could create tension if users feel their content is being used to sell products without permission or compensation.
