X Introduces AI-Based Targeting for Ads

X (formerly Twitter) introduced an AI-powered process for running ads and campaigns. According to the social media platform, the new AI targeting tools will feature “fewer steps” and improve ad relevance.

Advertisers can now set up sales campaigns by selecting a conversion event such as “purchase,” providing the daily ad budget, and inputting demographic preferences for gender, age, and location. X’s AI-powered systems will then do the heavy lifting to improve ad relevance and maximize results.

The AI Optimized Targeting feature is on by default for Sales Campaigns, which allows X’s algorithms to ads to people beyond the defined audience for instances “when there’s potential for a higher ROI.”

X’s Marketing Specialist Myles Wagner and Revenue Product Specialist Taylor Krynock observed an “average increase of 10%” for click-through rates and an “average increase of 16%” in conversion rates. Based on X’s data, 92% of advertisers saw improved results when Optimized Targeting was enabled.

X also introduced a new cost estimate feature that shows advertisers their approximate CPM (cost per mile for every 1,000 impressions an ad receives). This feature could be helpful in optimizing campaigns and ad budgets.

X has been struggling to keep advertisers on its platform, but not because of any faults in its ad system. Advertisers have been pulling away from the microblogging app due to Elon Musk’s controversial opinions. The billionaire recently endorsed an antisemitic conspiracy theory – and that was just one scandal in the sea of remarks he’s made since taking over X.

Musk also defines himself as a free speech absolutist, which resulted in loosening restrictions on the platform. For example, he announced the potential removal of the blocking feature from X.

Research from hate speech watchdog Center for Countering Digital Hate (CCDH) showed that hateful content and misinformation is on the rise on the platform. Musk deemed the claims fabricated and faulty and sued the nonprofit organization. He also publicly shamed the brands that stopped advertising on X, leading to a mass loss in ad revenue and a reportedly 71% depreciation in the platform’s value.

“X’s algorithms and AI capabilities grow more powerful each day,” the company stated enthusiastically, but advertisers will likely need to see improvements on other fronts before investing their ad money into X.