X’s Changing Ad Landscape: A New Pricing Model on the Horizon
X, formerly known as Twitter, is once again shaking up its advertising playbook. Just days after banning hashtags from all Promoted Posts, owner Elon Musk revealed an upcoming policy shift that will change how advertisers are charged for placements on the platform. Soon, the cost of running ads on X will be directly linked to the vertical size of the visuals used—meaning larger, more attention-grabbing ads will come with a higher price tag.
For digital marketers and brands relying on social media marketing to reach audiences on X, these changes could signal a significant shift in strategy and spending.
Why X is Rethinking Ad Pricing
Elon Musk has never shied away from bold moves or controversial tweaks to his platforms. In this latest shift, Musk explained, “X is moving to charging for ads based on vertical size, 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.”
While this update has not yet been formally enacted—there is no mention of it in X’s current ad pricing documentation—the move is in line with Musk’s ongoing campaign to declutter and “clean up” the X user feed. By making advertisers pay more for larger visuals, X aims to discourage oversized ads that dominate the timeline and potentially disrupt the user experience.
How Visual Size Impacts Ad Effectiveness on Social Media
In the fast-paced world of social media marketing, bigger often means better—at least when it comes to grabbing user attention. On X, ads can be formatted in various ways, including text-only, image, and video formats, with sizes varying dramatically based on the type and length of the visual content attached.
Larger ads typically command more screen real estate, drawing the eye and driving higher engagement. In a competitive feed environment, some advertisers have taken advantage of these options, leveraging extended visuals and videos to maximize impact. This, however, has resulted in a cluttered user experience for some, as feeds become inundated with oversized promotional content.
While X currently imposes some restrictions—text gets truncated after 180 characters and images or videos have size limits—there is still considerable variability in how much space an ad occupies. The new pricing model is designed to level the playing field, making the cost of an ad more closely reflect its potential influence on the platform.
Comparing with Other Social Media Marketing Platforms
X’s decision to tie ad costs to visual size is not without precedent in the world of social media marketing. Platforms like Facebook and Instagram already factor ad size and placement into their pricing algorithms. On these platforms, advertisers can select from various formats—stories, feeds, carousels—with each carrying different costs based on their prominence and screen presence.
By adopting a similar approach, X aligns itself more closely with industry norms. However, the impact of this transition will hinge on how significant the pricing differences turn out to be. If the cost increase for larger ads is steep, marketers may be forced to rethink their creative strategies or shift budgets to other platforms that offer more affordable engagement.
Is This About User Experience, Revenue, or Both?
Musk’s stated rationale focuses on improving the aesthetics and usability of the X feed. However, given X’s ongoing struggles to generate steady revenue and attract major advertisers, it’s hard to ignore the potential financial incentives behind the move. By charging more for premium ad space, X could unlock a valuable new revenue stream—provided advertisers are willing to pay.
The question now is how advertisers will respond. If prices rise significantly for larger ads, brands may pivot to smaller, less intrusive visuals to control costs. This could lead to a noticeable reduction in eye-catching creative across the platform, potentially impacting engagement rates for both advertisers and users.
On the flip side, if the price difference is marginal, brands may continue to invest in larger visuals, accepting the extra cost as the price of standing out in a noisy feed.
What Social Media Marketers Need to Know
For social media marketing professionals, the impending change is a clear sign that agility and adaptability will be key to continued success on X. With no official timeline for implementation or details on the exact pricing structure, marketers should begin preparing now by:
– Auditing current X campaigns to determine average ad sizes used
– Experimenting with smaller visual formats to gauge performance impacts
– Monitoring communications from X for updates on rollout and pricing specifics
– Revisiting broader social media marketing strategies to ensure optimal budget allocation across platforms
Brands may also want to consider creative alternatives—such as more engaging copy, dynamic but compact visuals, or interactive elements—to maintain impact without ballooning costs.
The Broader Implications for Social Media Marketing
The advertising landscape on social platforms is in constant flux, and X’s forthcoming change is just the latest example of how quickly things can evolve. As user experience becomes a greater priority for platforms, advertisers can expect more moves like this—where cost structures are tweaked to balance commercial interests with user satisfaction.
For social media marketers, the takeaway is clear: Flexibility is essential. Staying informed about platform changes and being willing to pivot strategies will remain crucial in a competitive and ever-changing digital environment.
Conclusion: Preparing for the New Era of X Advertising
While the specifics of X’s new ad pricing model are still under wraps, the direction is unmistakable. Larger visuals will soon come at a premium, forcing marketers to weigh the benefits of screen-dominating ads against their bottom line. As X seeks to optimize both user experience and revenue, brands will need to be smart, strategic, and nimble in their approach to social media marketing.
Now is the time for advertisers to evaluate their creative assets, budget allocations, and campaign objectives—ensuring they are ready to adapt to whatever comes next in the evolving world of X. For those who stay ahead of the curve, the platform may still offer rich opportunities for engagement and growth, even as the rules of the game continue to change.