Advertisers are returning to Twitter/X to keep Elon Musk happy

During Donald Trump’s first term in office, foreign governments found a great way to curry favor with him without directly handing him envelopes of money. At least 31 governments booked swanky rooms at Trump’s hotel in Washington, D.C., racking up bills in the hundreds of thousands of dollars for their stays. The prime minister of Malaysia, who was under investigation by the Department of Justice, spent more than $9,000 on coffee and $8,000 on room service lunches alone during his stay — and he surely told Trump how luxurious it was when they finally met.

As Trump prepares to return to the White House, I’ve been wondering what new ways interested parties might try to find to get in the president’s good books. Surely, his fail sons will find ways to cash in on their father’s position, but they’re not the only ones. Given Trump’s new alliance with the right-wing ruling class of Silicon Valley, Elon Musk has also become an obvious path to political influence and X, or the former Twitter platform, will be a beneficiary.

Twitter/X hasn’t been the success Musk hoped it would be once he carried a sink into its lobby. It has not expanded to become a digital bank or super app as he once claimed it would, and it has not had a renewed expansion as it’s become a “free speech” mecca. Rather, as Musk has lifted the suspensions on the most odious people on the platform and tweaked the algorithm to boost right-wing conspiracies and hate speech, he’s turned off not just a growing segment of its user base, but also of its advertisers. And it’s clear that latter development has really pissed him off.

A recent report in Adweek suggests some brands have slowly slunk back to the platform after the public scolding of the billionaire — or maybe just as part of a distributed marketing strategy to promote new properties. Among them are IBM, Comcast, Disney, Warner Bros, Discovery, and Lionsgate — most of which regularly have TV shows or movies to promote — but their spending has been far lower than in previous years. However, a new report in the Financial Times suggests that could be about to change as companies look for ways to get in Musk’s good books, and by extension those of Trump.

According to the FT, multiple media executives admitted that brands would be returning as advertisers on Twitter/X not because it’s a great place to reach people, but because they know it’s something Musk cares about and he’ll have influence with Trump. Lou Paskalis, chief executive of marketing consultancy AJL Advisory, called it a form of “political leverage” that will be helpful if the companies are seeking government contracts. Throwing a few million dollars at Twitter/X to be in the “good graces of Elon” will surely also be a good strategy to stay out of his crosshairs and those of the administration.

But that’s just one way Musk is poised to benefit from his close relationship to Trump and the influence he has in the administration, including as part of the so-called Department of Government Efficiency. After the election, Musk’s companies rallied, with Tesla’s share price jumping as investors piled in and the valuations of SpaceX and xAI poised to significantly increase as they prepare to raise more capital. Investors know they’ll be in for favorable treatment from the new administration, and the investigations they’re facing might not go on much longer.

There’s no question Trump will ensure he personally profits even as his increasingly extreme cabinet picks try to send the United States back to the nineteenth century. Plenty of corporate interests will be looking for their paydays too, and they’ll search out whatever pathways are necessary to achieve them. That’s great news for Musk, who bet his hyped up empire on the reality TV businessman and is now poised to reap the rewards.