Billionaire entrepreneur Elon Musk has announced a major change to advertising on X (formerly Twitter), introducing a screen-based pricing model aimed at enhancing user experience by discouraging intrusive, oversized ads.
In a post on the platform, Musk stated that X will begin charging advertisers based on the vertical size their ads occupy. “X is moving to charging for ads based on vertical size,” Musk explained. “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.”
Traditionally, advertisements on X have been priced based on impressions, clicks, or engagement levels. This meant that large-format ads could dominate user screens without incurring proportionately higher costs. Musk’s new model aims to correct that imbalance by aligning ad pricing with on-screen real estate usage, a move seen as part of his broader effort to refine and elevate the platform’s usability.
The shift comes at a pivotal time, as several major brands resume advertising on X following Musk’s antitrust lawsuit against the Global Alliance for Responsible Media (GARM), which he accused of initiating an illegal boycott. Although U.S. ad spending on X dipped by 2 percent in early 2025, leading ad agencies like WPP and Omnicom have since set annual spending targets, indicating renewed confidence in the platform’s direction.
This advertising change forms part of Musk’s expansive vision for X, which is undergoing a dramatic transformation into a multifaceted “everything app.” Alongside financial services, video content, and integrated AI tools, X is positioning itself as a hub for communication, commerce, and digital innovation.
In a major development earlier this year, Musk’s artificial intelligence startup, xAI, acquired X in a deal valuing the merged entity at $80 billion. The integration has supercharged X’s AI capabilities, improving ad targeting and personalisation by leveraging vast datasets and top engineering talent.
With this evolution, Musk is clearly steering X beyond social media, towards becoming a powerful, AI-driven digital ecosystem.
