NAIROBI, Kenya – Billionaire tech mogul Elon Musk has announced a fundamental shift in X’s advertising model, signaling a move away from engagement-based pricing to a system where ad costs will be determined by how much vertical space they occupy on users’ screens.
“X is moving to charging for ads based on vertical size,” Musk posted on the platform on Thursday. “So an ad that takes up the whole screen would cost more than an ad that takes up 1/4 of the screen, otherwise the incentive is to create giant ads that impair the user experience.”
The move is aimed at curbing the proliferation of oversized, full-screen ads that many users have described as disruptive.
It also reflects Musk’s broader push to enhance user experience even as the platform aggressively monetizes.
Traditionally, ads on X—formerly known as Twitter—have been priced based on impressions, clicks, and user engagement.
Under the current model, large-format ads often secure prime visibility at no additional cost, a loophole Musk now intends to close.
The pricing change comes amid a broader transformation of the platform.
Musk’s artificial intelligence startup, xAI, recently completed the acquisition of X in a deal that values the merged entity at $80 billion.
The integration is expected to bolster the platform’s ad targeting capabilities through richer datasets and enhanced AI-driven insights.
X’s pivot also coincides with the return of major advertisers following legal wrangling with the Global Alliance for Responsible Media (GARM).
Musk has accused the coalition of orchestrating an “illegal boycott” of the platform.
Despite a 2 percent decline in U.S. ad spending on X in early 2025, global advertising giants WPP and Omnicom have since signed annual spending agreements, indicating a tentative thaw in relations.
Eastern Africa-based digital strategist Wanja Gikonyo noted that Musk’s new approach could set a precedent: “This signals a shift in how digital real estate is valued. It forces marketers to be more creative with less space, while still delivering results.”
Beyond advertising, X is steadily evolving into what Musk has described as an “everything app”—a single platform offering communication tools, video content, financial services, and AI-powered utilities.
With monetization and user experience now taking equal priority, Musk appears determined to reshape the digital landscape—not just through what users see, but how much space it takes up.
