X’s new algorithm results in 56% average increase in conversions for advertisers, Musk tweets

New Delhi: Elon Musk, CTO, X, retweeted a post stating that X recorded a 56% average increase in conversions and a 42% reduction in cost per purchase for advertisers after changing the social media platform algorithm. 

X (formerly Twitter) changed its advertising by integrating artificial intelligence and machine learning (AI/ML) to improve targeting. 

According to a blog by X, the company observed an average increase of 10% in click-through rates (CTR) and an average 16% rise in conversion rates. Furthermore, 92% of advertisers witnessed improved results, choosing to keep optimised targeting enabled. 

Big improvements to advertising https://t.co/9sVHvtyEjO

— Elon Musk (@elonmusk) June 17, 2024

According to the blog, AI will increasingly improve ad relevance and reduce time spent launching campaigns. The new interface allows one to select conversion events, set daily ad budgets, and add the demographic one intends to reach.

The news comes on the back of criticisms aimed at Musk for antisemitism resulting in advertisers shying away from advertising on the platform. 

Moreover, companies like Apple Inc, IBM, Walt Disney Company, Paramount Global and others stopped advertising on X after Musk agreed with a post that said Jewish people have a “dialectical hatred” of White people. “You have said the actual truth,” Musk responded on the post.

Additionally, Musk has long drawn criticism for promoting hate speech on the platform. Politicians as well as some of the world’s biggest companies have urged the founder of Tesla to better manage content on X.