Billionaire entrepreneur and X (formerly Twitter) owner Elon Musk has announced a major change to the platform’s advertising pricing model. In a post on X, Musk revealed that the platform will begin charging advertisers based on the vertical size of their ads rather than traditional engagement-based metrics.
“X is moving to charging for ads based on vertical size,” Musk stated. “So an ad that takes up the whole screen would cost more than an ad that takes up ¼ of the screen. Otherwise, the incentive is to create giant ads that impair the user experience.”
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The move is aimed at enhancing the user experience by discouraging oversized and intrusive ads that dominate the screen.
Currently, X charges for ads based on metrics such as impressions, clicks or engagement. This shift means larger ads, which previously gained more visibility at no extra cost, will now come with a higher price tag.
The policy change comes as major brands begin returning to the platform, following legal action by Musk targeting the Global Alliance for Responsible Media (GARM) over antitrust concerns.
Elon Musk has accused the Global Alliance for Responsible Media (GARM) of orchestrating an “illegal boycott” against X, contributing to a temporary dip in U.S. ad spending on the platform, which fell by 2 percent in early 2025.
However, leading advertising firms such as WPP and Omnicom have since committed to annual spending targets, reflecting a cautious but growing confidence in the platform’s evolving direction.
These developments are part of X’s broader strategy to balance revenue generation with an improved user experience. The platform is undergoing a transformation into a multifunctional ecosystem, offering services that span financial tools, video content and artificial intelligence.
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In a significant move, Musk’s AI company, xAI, recently acquired X in a deal that valued the combined entity at $80 billion. The merger unites extensive data resources with top-tier engineering talent, boosting the platform’s AI capabilities and sharpening the precision of ad targeting.
The evolving structure of X reflects Elon Musk’s ambition to reinvent the platform as an all-in-one “everything app,” seamlessly integrating communication, commerce, payments and artificial intelligence.
