Elon Musk, CEO of X, unveiled the platform’s advanced advertising technology, which he claims has significantly improved targeting capabilities.

AI Matching to Make X Ads More Relevant

Musk, during a livestream to advertisers on Wednesday, discussed the significant advancements in X’s advertising technology. He emphasized the platform’s new ability to provide users with ads that are more relevant to their needs.

He stated that the previous advertising technology lacked appropriate targeting, leading to users seeing irrelevant spam ads.  "An ad that meets a user's needs, if it's a product or service that they want, especially when they want it, that is actually content," stated Musk.

Musk also highlighted the use of Grok for AI matching to correlate user interests with specific products or services, resulting in a significantly improved matching process. He urged advertisers to consider creating ads for specific products and services to connect users with products and services that would improve their lives, rather than generic or brand-based advertising.

“We finally have the technology to do that by using AI matching,” assured Musk.

He further highlighted the strong purchasing power of X's users, calling them the wealthiest advertising demographic across any social, digital, or traditional media platform.

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Musk, Meta Reshapes Ads Amid Tech Advancements

Musk’s announcement comes after a series of significant changes in X’s advertising strategy. In June, Musk revealed that X would charge advertisers based on vertical screen size, a move aimed at curbing the creation of giant ads that impair the user experience. This marked a significant shift in the platform’s revenue strategy.

Prior to this, in March, major brands had resumed advertising on X amid legal pressure. Musk’s influential role in the Trump administration and his legal action against entities that stopped advertising following his $44 billion acquisition of the platform in 2022 had prompted companies to return to advertising on the platform.

Not just X, it was reported in June that Meta Platforms (NASDAQ:META) plans to launch a fully AI-driven ad system by 2026, enabling brands to create complete ads--including visuals, video, copy, targeting, and budget recommendations--advancing Mark Zuckerberg's vision beyond its current AI tools that only tweak ad variations.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.