X is experimenting with a new advertising format that directly links user conversations to product promotions. The feature is currently being tested with a limited number of posts and advertisers. Under the experimental format, when a user publishes a post that mentions a specific brand, service, or product, the platform may automatically display a product suggestion or purchase link below that post.
Rather than interrupting the feed with generic ads, the platform attempts to match advertisements to the context of the conversation happening on the site. This approach could increase engagement because people reading a discussion about a product are already more likely to be interested in it. The format also allows advertisers to capitalize on organic user recommendations without needing to create separate promotional posts.
The new contextual ad format also shows a larger trend in the digital advertising industry – the rise of social commerce, where users can discover and purchase products directly within social platforms. Competing services have been moving in this direction for several years. Platforms owned by Meta and short-video apps like TikTok have already introduced features that allow users to shop directly from posts, livestreams, or creator recommendations.
The development appears to be part of the aggressive efforts by the Elon Musk-owned platform to boost its advertising revenue again after a prolonged period of instability. Since Musk acquired the platform in 2022, the company has gone through significant structural and policy changes. During this transition, several major brands scaled back or temporarily paused their ad spending on the platform due to concerns over brand safety and the evolving direction of the service. As a result, the company’s advertising income dropped significantly compared with the earlier years.
The timing of this latest move is also notable as X has recently been introducing several new tools aimed at strengthening its creator ecosystem and expanding monetisation opportunities on the platform. Earlier this week, the company revamped its Creator Subscriptions programme by adding features like ‘Exclusive Threads’, which allow creators to place which allow creators to place parts of a conversation behind a subscription paywall so that only paying followers can access them. The update also includes a refreshed subscription paywall, a new creator dashboard for tracking earnings and audience insights, and shareable subscription cards that help creators promote their paid content more easily. Additionally, the platform recently introduced a ‘Paid Partnership’ label that creators can apply to posts when they are promoting a brand or product as part of a sponsorship deal.
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