X Turns to Amazon To Boost Advertising, Report Says

Social media platform X (formerly Twitter) is reportedly in talks of closing a deal with Amazon, as it aims to boost revenue following the departure of several of its biggest advertisers.

According to a report from the Wall Street Journal, the supposed deal will allow X's ads to be available on the eCommerce giant's ad-buying software, leveraging Amazon's wide user base.

The deal, should it push through, could potentially reel in small to medium businesses to use the online retailer's platform. 

While the potential partnership is still in its early stages, it remains unclear whether it will come to a closed deal. 

The news comes as X engineers aim to improve the ad platform, with a focus on direct response ads.

"X helps businesses of all sizes connect with communities and conversations that help them grow. For small businesses, X enables them to build their network leveraging, while also driving economic success," the company's official Business account explained in a post. 

X CEO Linda Yaccarino expressed optimism for this push.

Love to see all businesses succeeding on @X! If you’re a small business and have a product idea for us or a new way we can help you out more, please share in the comments. 💪 https://t.co/OQCMZ9Q7zx

— Linda Yaccarino (@lindayaX) December 8, 2023

Currently, the social media giant is also in talks with ad platforms like PubMatic, and has striked a deal with Google's ad service earlier in the year.

Can the Partnership With Amazon Redeem X?

Several of X's advertisers including IBM, Apple and Ubisoft have opted out of running ads in the platform following Musk's open support for an antisemitic conspiracy theory and reports that their ads were running alongside pro-Nazi content.

This heated relationship between the multibillionaire and his platform's former advertisers only heightened after his controversial interview at the New York Times' Dealbook Summit, where he told advertisers and Disney's CEO Bob Iger to "go f**k yourself."

While a partnership with Amazon could potentially propel the platform's business, it would have to make up for the damage its ex-advertisers have caused just by pulling out. 

A recent report from the New York Times details that X could lose as much as $75 million in ad revenue by the end of the year, with over 200 advertisers stopping or pausing their ads in the platform.

Additionally, another study revealed that the platform's CPM (cost per mille) is the lowest among its eight major rivals, dropping by 75% since Musk's takeover a year ago.