X, previously known as Twitter has introduced a perplexing new ad format that has left users and advertisers scratching their heads. The presence of chumbox ads could signal that Elon Musk is facing a hard time to attract advertisers on the platforms.
Chumbox Ads on X Are Not Chummy
In recent days, multiple X users have reported encountering a novel ad format in their For You feed, one unlike anything seen before. These new X ads have peculiar traits: users are unable to like or retweet them, and crucially, the ads do not disclose their origin or that they are advertisements.
According to an investigation by Mashable, the ads consist solely of written text, a photo, and a fake avatar designed to give the appearance of an organically posted tweet. The content of these ads appears similar to the clickbait ads typically found at the bottom of content farm sites, known as "chumbox" advertising.
Users who interact with these X ads are directed to a third-party website upon clicking anywhere within the ad, including the fake avatar. There is no X post to open, nor a user profile linked to the ad.
As of now, these ads have been observed on X's mobile apps, and it remains uncertain if they also appear on the web version of the platform.
Interestingly, Mashable found ads with similar text running through ad networks on Yahoo and competitors like RevContent. To add, this specific X ad format does not appear in the platform's ad campaign manager, indicating that a third-party ad provider is responsible for their delivery.
Related Article : X is No Longer Showing Headlines in Posts with Links, Elon Musk Says it Looks Better
The Advertiser Challenge on X
Since Elon Musk's acquisition of X, the platform has encountered challenges in attracting advertisers. Half of the platform's top advertisers halted their ad campaigns shortly after Musk's takeover. Moreover, reports indicate that returning advertisers are now spending up to 90% less on X advertising than before Musk's ownership.
Another report found that X has witnessed declining revenue every month since Musk's acquisition. To offset this decline in ad revenue, X has entered into partnerships with third-party players in the ad tech industry to sell its available ad inventory. Google and InMobi are among the notable partners.
Decoding the New X Ads
Traditionally, X ads were presented as regular posts that advertisers paid to display in users' feeds, replies, or profiles. However, the new ad format deviates significantly from this norm.
These X ads are technically not posts; they lack engagement options such as liking, retweeting, or replying. They cannot be opened in full tweet view, and they lack the familiar three-dotted icon for reporting or blocking.
You will also see that they are not linked to any X account so that leaves a question "who are their advertisers?" Aside from that, there is no "promoted" or "ad" label. There's not so much to see about these ads.
Does This Mean X is Facing a Crisis?
These unconventional X ads have surfaced alongside other changes on the platform that reduce transparency.
Under Elon Musk's directive, X removed headlines and context from shared links, opting for a minimalist approach. The impact of these changes on users and advertisers remains to be seen, but it underscores the evolving landscape of X under new ownership.