Finance

X pitches advertisers on AI-driven targeting amid European usage decline

Despite a 15 per cent drop in European app usage during the second half of 2025, X is leveraging advanced artificial intelligence and demographic data to convince marketers of its renewed value proposition.

Author
Owen Mercer
Markets and Finance Editor
Published
Draft
Source: Yahoo Finance · original
X pitches advertisers on rising opportunities in the app
Social media platform highlights higher household incomes and improved algorithmic precision to win back marketing spend

X is launching a renewed pitch to advertisers, seeking to bolster its revenue intake by promoting significant upgrades to its ad platform. The company is highlighting its rebuilt targeting capabilities, which are now powered by advanced artificial intelligence models designed to better understand and contextualise user behaviour. According to reports from Digiday, this represents the most substantial update to the platform in the company’s history, with the aim of delivering improved campaign results through more precise audience segmentation.

In its pitch to potential advertisers, X is emphasising the economic profile of its user base to demonstrate value. The company states that its users have an average household income exceeding $90,000, a figure that sits 10 per cent higher than the US average. Additionally, X notes that its audience is expanding among 18-to-24-year-olds while maintaining a strong presence among older demographics, positioning the platform as a viable channel for reaching high-income consumers across age groups.

The composition of conversations on the platform has also shifted, a factor X is using to illustrate its evolving relevance. Sports remain the most discussed topic, with the app continuing to serve as a primary destination for live event discussion and community engagement. However, the hierarchy of other key topics has changed compared to 2024, with gaming dropping down the list and politics rising in prominence. X suggests this shuffling of topics reflects changing audience focus and shifting demographics.

However, the company faces headwinds in certain international markets. Disclosure data required under the EU Digital Services Act (DSA) indicates that app usage in Europe declined by 15 per cent during the second half of 2025. While X remains significantly more popular in the United States and Japan, the European data points to a potential broader shift away from the platform in that region, which could impact its overall promotional value and topical relevance.

Analysts note that the success of X’s strategy hinges on whether its improved AI targeting can compensate for a smaller, more niche audience reach. If the advanced targeting process delivers the high engagement rates promised by the company, advertisers may find value in reaching specific user segments even as overall usage trends fluctuate. The pitch aims to convert these technical and demographic advantages into tangible marketing outcomes for brands seeking to navigate a fragmented social media landscape.

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