X's Sustainability as a Monetizable Platform: Navigating Post-Election Risks and Engagement Volatility

The 2024 U.S. election served as a litmus test for X's (formerly Twitter) sustainability as a monetizable platform, exposing both its strengths and vulnerabilities. While the platform remained a critical hub for real-time political discourse, post-election data reveals a complex interplay of engagement volatility, algorithmic risks, and evolving monetization strategies that investors must scrutinize.

Engagement Volatility: A Double-Edged Sword

Sensor Tower data underscores X's role as a real-time news engine during the 2024 election, with a 6% daily-over-daily (DoD) increase in U.S. user time spent on election day across desktop and mobile platformsUS Consumers Across Multiple Mediums Flocked To X on Election Night^[1]. However, this growth lagged behind the 9% spike observed in 2020, signaling a potential plateau in user relianceUS Consumers Across Multiple Mediums Flocked To X on Election Night^[1]. Competitors like the Wall Street Journal outperformed X on mobile app engagement (13% DoD increase), while CNN and the New York Times saw declinesUS Consumers Across Multiple Mediums Flocked To X on Election Night^[1]. This fragmentation highlights the challenge of sustaining high engagement in a saturated digital media landscape.

Post-election analyses further reveal shifting consumer habits: 37% of voters shared political content online, and 75% engaged in election discussions within personal networks2024 Post-Election National Survey - Center for Campaign Innovation^[2]. While this amplifies X's role in political discourse, it also underscores the platform's dependence on cyclical events like elections. Sustaining engagement during non-election periods will require innovative content strategies, particularly as younger demographics increasingly favor streaming services and podcasts2024 Post-Election National Survey - Center for Campaign Innovation^[2].

Algorithmic Risks and Monetization Uncertainty

A technical report by Timothy Graham and Mark Andrejevic raises critical concerns about algorithmic bias on X during the 2024 election. The study identifies a structural shift in engagement metrics around mid-July 2024, coinciding with Elon Musk's endorsement of Donald TrumpPotential Algorithmic Bias on X During the 2024 U.S. Election^[3]. While the report's methodology is limited, it suggests platform-level influence on political discourse, potentially undermining trust in X's neutrality. This is compounded by opaque algorithm updates on GitHub, which could distort organic reach for both Republican and Democratic accountsPotential Algorithmic Bias on X During the 2024 U.S. Election^[3].

For investors, such algorithmic instability poses a direct threat to monetization. Political advertisers and influencers rely on predictable engagement patterns to optimize campaigns. If users perceive bias or erratic content prioritization, ad spend may migrate to platforms with clearer governance frameworks. This risk is amplified by X's lack of mandatory “paid for” disclosures for political ads, a policy that could invite regulatory scrutinyThis is Not An #Ad: Political Influencers, Elections, and Information Integrity on Social Media^[4].

Monetization Strategies: Innovation vs. Opacity

X's 2025 monetization playbook emphasizes video-first content, real-time engagement, and creator-centric tools like subscriptions and ad revenue sharingX Monetization Playbook: How to Monetize on Twitter in 2025^[5]. Creators are incentivized to post frequently within trending topics, leveraging the platform's algorithmic preference for time-spent metricsX Monetization Playbook: How to Monetize on Twitter in 2025^[5]. While these strategies align with broader trends in the creator economy, they also create a dependency on platform-specific rules that can shift rapidly.

Political influencers, in particular, have become pivotal to modern campaigns. Over 25% of U.S. creators were solicited by political organizations during the 2024 cycle, yet many partnerships remain undisclosedThis is Not An #Ad: Political Influencers, Elections, and Information Integrity on Social Media^[4]. This opacity risks eroding public trust, especially as AI-generated content blurs the lines between organic and paid promotionThis is Not An #Ad: Political Influencers, Elections, and Information Integrity on Social Media^[4]. For X, the challenge lies in balancing innovation (e.g., Shop Spotlight, X Money) with transparency—a tension that could either solidify its position in the creator economy or expose it to reputational damage.

Sustainability Outlook: Balancing Opportunities and Risks

X's sustainability as a monetizable platform hinges on its ability to address three key issues:
1. Engagement Stability: Diversifying content beyond election cycles to retain users in non-political contexts.
2. Algorithmic Trust: Clarifying governance policies to reassure advertisers and regulators.
3. Monetization Clarity: Standardizing disclosure requirements for political content to align with evolving ethical expectations.

While X's 22 million election-related posts from May to July 2024 demonstrate its utility for real-time sentiment analysis2024 Post-Election National Survey - Center for Campaign Innovation^[2], the platform must now prove it can sustain this value proposition without relying on high-stakes events. For investors, the stakes are clear: X's future depends on its capacity to innovate responsibly in a landscape where trust and transparency are as valuable as engagement metrics.