X has a new strategy to take on YouTube, plans to pay creators more, will push targeted ads

X, the rebranded social network formerly known as Twitter, is stepping up its game to attract video creators and compete against YouTube by introducing new advertiser targeting features. Starting later this month, X will enable advertisers to run ads before videos from selected creators, both in the main timeline and on individual profiles, the company announced on Monday. This move aims to provide advertisers with more options for reaching their target audience while offering X’s extensive network of 80,000 creators an additional revenue stream. However, the exact percentage of ad revenue that X will share with creators remains undisclosed. Nonetheless, the platform has previously boasted of paying out more than $20 million to its creators. By comparison, Google’s YouTube typically offers creators a 55 per cent share of ad revenue generated by their videos. Elon Musk, the driving force behind X’s strategic direction, has been actively pushing for the platform to focus more on premium video content. Recent efforts include partnering with notable figures such as former CNN host Don Lemon and World Wrestling Entertainment to produce exclusive shows for the platform. Musk’s aspirations for X to rival YouTube have been evident in his direct outreach to content creators, with him even publicly acknowledging and commending prominent YouTube personality Jimmy Donaldson, better known as MrBeast, for sharing his first video on X. These endeavours by Musk are part of a broader initiative to regain the trust of marketers and advertisers following his turbulent takeover of the platform, which resulted in a significant decline in advertising revenue. Last year, X reportedly fell short of its $3 billion revenue target, with ad sales estimated to be around $2.5 billion, according to Bloomberg.