Phyrex|Jul 18, 2026 18:18
Brother M is still too naive. Although X is not a publicly traded company at the moment, it is part of the publicly traded SpaceX and still needs to contribute to the performance of the listed company. For social media platforms like this, the most important metric is ad revenue, and ad revenue comes from having enough traffic.
Tiktok, Douyin, and Xiaohongshu have such high valuations mainly because their traffic is massive. Since Musk acquired X, its revenue hasn’t been great. It only showed year-over-year growth in 2025, but compared to the $5 billion peak in 2021, the revenue in 2025 is estimated to be only about $3.3 billion.
Ad revenue accounts for roughly 70% of X’s total income. To increase ad revenue, you need to boost traffic—more people posting, more people viewing, and more people interacting. That’s the only way to potentially attract more advertisers. So, everything Nikita is doing is aimed at driving organic traffic growth.
Now, some of you might ask, why block low-quality bulk posts? Wouldn’t that also increase traffic? Here’s the issue: if you look at the recent bans, you’ll notice that many of the blocked accounts were bots. While bot posts might appear to increase traffic, they actually consume a lot of X’s resources.
For X, saving money is also crucial. On one hand, X encourages users to bring in content from outside the platform to drive internal traffic. For example, reposting content from Douyin (which isn’t accessible overseas) to X, or from Tiktok to X. They’ve even enabled automatic translation to better eliminate cross-border barriers.
On the other hand, X is heavily promoting subscriptions, aiming to create an internal funding loop rather than relying solely on ads. But this approach is much more challenging. So overall, X’s current strategy is for the really awesome creators to sell subscriptions, while regular users focus on generating traffic.
As for content creation and high-quality articles, the best fit for those is vertical advertising. In fact, X hasn’t been particularly aggressive in cracking down on vertical ads.
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