What X’s Lead Gen Ads means for advertisers

X has launched Lead Gen Ads, its first new advertising product since announcing a major rebuild of its ad platform, as the company looks to strengthen its offering and win back advertisers following a prolonged downturn in ad revenue.

The new format allows users to submit their details to advertisers through a native form on X, without leaving the platform. It is available across image, video, carousel and 'Timeline takeover' formats.

Users can tap a Lead Gen Ad to open the form, fill in their details and submit them within X. For users who have previously submitted their information, X will pre-populate future forms.

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The launch also comes with a dedicated “Leads” objective in X Ads Manager and a new leads center, which allows advertisers to export lead data or send it directly to a CRM.

Monique Pintarelli, head of global advertising at SpaceXAI, said: “Around the world, people come to X to talk about brands, products and events as they're happening. Lead Gen Ads simply make it easier for them to take the next step without breaking that momentum when an ad has caught their attention.”

The launch builds on X's April announcement of what it called “the most ambitious advertising platform rebuild in its 20-year history”, centred on three pillars: simplicity, control and AI-powered performance.

X positioned the rebuild as an effort to improve its advertising platform after its ad business took a significant hit following Elon Musk's acquisition of Twitter in October 2022.

According to Business Insider, global ad revenue fell from US$4.5 billion in 2022 to US$2.2 billion in 2023, before dropping further to US$1.7 billion in 2024. Revenue edged up to US$1.8 billion in 2025.

The decline came as advertisers pulled back from the platform amid concerns around brand safety, reputational risk and content moderation. X has previously acknowledged advertiser concerns over the environment in which their ads appear, while analysts have also pointed to concerns surrounding Musk himself as a factor in the pullback.

Musk has taken a combative stance towards advertisers that withdrew spending from the platform. In 2024, X sued the World Federation of Advertisers and several of its members, alleging an unlawful boycott over advertising on the platform.

That said, not every brand has stayed away. Some large advertisers have gradually returned as X's user base, as shown by the slight recovery in 2025, reported Business Insider. 

Against that backdrop, Lead Gen Ads gives X another tool to appeal to performance-focused advertisers by allowing brands to capture leads within the platform, rather than directing users to an external landing page.

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