Smarter, Sharper, Everywhere - Elon Musk’s Plan to Transform X Ads Forever

The platform once known as Twitter is gearing up for a major holiday advertising push, introducing an overhauled targeting system powered by xAI’s Grok engine, alongside new ad formats designed to make promotions more visually compelling — and more effective.
In an X Spaces session on Wednesday, owner Elon Musk and members of the X advertising team outlined their vision for the platform’s ad future, pitching systematic upgrades to potential partners.
As Musk explained:
“We’re working to make X the best advertising platform in the world. A key part of that is applying the smartest AI in existence — Grok — which tops every benchmark. Grok lets us precisely match a product or service with the people most likely to be interested in it.”

The central claim: Grok’s targeting capabilities have dramatically outpaced the old Twitter system, which Musk characterized as “somewhat random” and, at times, absent altogether. The AI now enables more relevant ads for all users, while also improving brand safety — a long-standing sore point for the platform.
Brand safety was, in fact, the main driver behind the advertiser exodus after Musk’s takeover, with looser placement policies leading to ads appearing next to offensive content. Musk’s public clashes with advertisers, including his now infamous “go f*** yourself” remark, only deepened the divide. Some brands have since returned, with the 2024 election cycle prompting strategic reassessments, but ad revenue remains well below pre-acquisition levels.
Whether Grok’s improved targeting can turn that tide remains to be seen.

Beyond AI, X is also reshaping the way ads are presented. Hashtags are now banned in promotions, emoji use is restricted, and a new “aesthetic score” determines whether an ad’s visual quality qualifies it for lower costs.
“Ugly, strident ads are not okay,” Musk said. “We’re not asking for art, but it can’t be an eyesore. The goal is to improve the beauty of the system overall.”
Grok will also assess the quality of landing pages, rewarding ads that hold user attention after the click with better auction placement. While measuring effectiveness through engagement makes sense, the value of the aesthetic score is less clear — appearing more in line with Musk’s taste than user data.

New ad formats are also in the works. Dynamic Product Ads, powered by AI, will deliver product recommendations tailored to each user. Musk also envisions integrating ads into Grok chatbot responses, with targeting tied to the query itself.
Eventually, he says, Grok could handle the entire ad creation process:
“Upload an ad and do nothing else — Grok will handle everything from there.”
It’s an ambition not far from Meta’s own AI-driven ad vision.
Further down the roadmap, Musk’s “X finance” feature could enable one-click purchases within the platform, part of his broader “everything app” strategy.

The challenge remains X’s audience trajectory. While the company claims growth, external data suggests declines in both users and relevance. For advertisers, however, reach is secondary to whether the right consumers are present — and Musk insists they are.
According to him, “CEOs, heads of state, and real-world influencers” gravitate to X, not TikTok or Instagram. The platform, he says, represents “buying power in the trillions,” citing active users like Marc Benioff, Michael Dell, and Larry Ellison.
Whether that’s enough to earn back advertiser trust — and budgets — will depend on results. But X is betting that with Grok at the core, its ad system is sharper, safer, and more lucrative than ever.
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