X platform expands programmatic advertising access with lower CPMs
X platform broadens programmatic access through multiple DSPs while offering notably lower CPMs compared to competitors in the ad space.
Three months after PubMatic began offering X inventory to third-party demand, new data reveals significantly lower programmatic advertising costs on the platform compared to competitors. According to data shared on December 4, 2024, by a Google authorized realtime bidding partner on Reddit, the average CPM for X's native inventory through programmatic channels stands at $0.39.
The data indicates that X's programmatic inventory currently generates 106 billion weekly impression opportunities, with 98% consisting of native ad formats. The geographical distribution shows Japan leading with 29% of impressions, followed by the United States at 21% and Brazil at 7%.
NBCUniversal's VP of Product Management for Programmatic, Trey Titone, highlighted the stark pricing difference between platforms. According to Titone, while X's native inventory averages $0.39 CPM, Meta's advertising costs range between $6-$8 CPM, representing a significant price differential in the digital advertising marketplace.
Technical analysis of the bidding data shows that while the average U.S. bid price hovers around $0.39 CPM, approximately 90% of available impressions can be secured at $0.67 CPM. The platform maintains a floor price of approximately $0.30 CPM, establishing a clear pricing structure for programmatic buyers.
The expansion of programmatic access comes as part of X's broader strategy to increase advertising revenue. The platform began this initiative last year, first partnering with InMobi, followed by Google Ad Manager, and most recently PubMatic. The platform's ads.txt file confirms these partnerships:
inmobi.com,4bf113779e32418ea740e6a2440e1f6c,DIRECT,83e75a7ae333ca9d
google.com,pub-3661441281163245,DIRECT,F08c47fec0942fa0
pubmatic.com,165711,DIRECT,5d62403b186f2ace
Industry professionals note that DSP platforms including StackAdapt and Basis currently provide access to X inventory, with expectations of additional platforms joining as partnership networks expand. The available formats encompass both in-feed placements and video advertisements.
Will Barry, responding to the pricing data, raised questions about targeting capabilities: "Would love to see a raw bid request that comes from X inventory. I'd imagine there are very few signals passed to target or optimize against, hence the low price and performance."
Several advertising professionals commented on the strategic implications of these rates. Steven Liss noted the presence of "bottom-tier brands with brilliant contextual targeting - at least within reply threads," suggesting potential value differences between in-feed and in-reply placements.
The timing of this programmatic expansion aligns with broader industry trends. According to eMarketer data cited by AdTechRadar, U.S. programmatic advertising spend is projected to increase by 16% year-over-year in 2024, growing at three times the rate of non-programmatic advertising.
This programmatic integration represents a significant shift in X's advertising infrastructure. By making inventory available through third-party demand platforms, X positions itself to capture a larger share of programmatic advertising budgets while offering notably competitive rates compared to other major social platforms.
Recent data from MediaRadar and reporting by The Financial Times and Adweek indicates a potential return of advertisers to the platform. This trend, combined with expanded programmatic access and competitive pricing, suggests X may be positioned for increased advertising revenue as it enters 2025.
The platform currently ranks as the number one app on the Google display network worldwide in terms of available impressions, indicating significant scale despite the competitive pricing structure. This volume, combined with the low CPMs, presents both opportunities and challenges for advertisers evaluating their programmatic spending allocations.
Technical Details:
- Weekly impression forecast: 106 billion
- Native ad percentage: 98%
- Top markets by impression share:
- Japan: 29%
- United States: 21%
- Brazil: 7%
- Average U.S. CPM: $0.39
- 90th percentile CPM: $0.67
- Floor price: $0.30
This data emerges as programmatic advertising continues to gain prominence in digital marketing strategies, with the potential to reshape pricing dynamics across major social platforms.