The AI-powered Optimized Targeting feature is activated by default for Sales campaigns on X. It operates by allowing X’s algorithms to reach people beyond the advertiser's targeted audience when there is potential for a better return on investment (ROI). This is achieved by analyzing a range of factors to improve detection and targeting measures.

During beta testing of X's AI-powered targeting tools, exceptional results were observed, including:

• An average increase of 10% in click-through rates
• An average increase of 16% in conversion rates As a result, 92% of advertisers saw improved results and chose to keep the Optimized Targeting feature enabled.

X has added a new cost estimate feature which provides advertisers with a projected range of what their CPM (cost per 1,000 impressions) may be for Sales campaigns. This feature is intended to help advertisers better plan and budget their ad spend on the platform.

Despite improvements to the ad system, some former advertisers are still staying away from X due to factors unrelated to the system's performance. These include:

• Controversial stances and commentary by owner Elon Musk on global political events.
• A platform approach that tolerates more rule-breaking content under the banner of 'freedom of speech, not reach'.
• Public shaming by Musk of brands that choose not to advertise on the app.
• Reports of ads being shown alongside offensive and hateful comments. These issues have caused many ad partners to reconsider their investment in the platform.