X (formerly Twitter) promised to share advertising revenue with creators subscribed to X Premium (formerly Twitter Blue). However, it has been revealed that most creators are receiving only a fraction of the ad revenue, with some earning less than 1% of what X receives from advertisers. For context, X advertisers typically pay $5 for every 1,000 ad impressions (CPM), while premium placements can command over $100 CPM.
The payouts received by many X creators tell a different story. Some creators report earning as little as $0.07 CPM, which is 98% less than X’s standard rate. In fact, most creators earn less than 1% of X’s ad revenue. Additionally, X has set a high threshold of 5 million impressions within three months to qualify for payouts, leaving the vast majority of users with no payouts at all.
Furthermore, X seems to be withholding over 98% of ad revenue, except for the most popular creators. This revelation raises questions about the purpose of the payouts, especially considering X’s financial status. Even before Elon Musk acquired X, the company had accumulated significant net operating losses. Since Musk’s acquisition, the company’s US advertising revenue has declined by 60%.
The meager payouts to creators, coupled with the withholding of ad revenue, could be seen as a media strategy on X’s part. By offering small incentives to creators, X may aim to drive engagement and earn positive publicity. Despite the low payout percentage, some users appreciate even the modest 1% they receive, considering it better than nothing.
Read Now: Binance’s “Hot Wallet 7” sends $240,000 to suspected phishing address: what really happened?