X and WFA: legal settlement and its impact on social media buying

The timeline of a lawsuit that spanned two years of the advertising market

In 2024, X, the platform formerly known as Twitter, filed a lawsuit against the World Federation of Advertisers. The accusation was specific: the WFA allegedly coordinated a systematic and illegal boycott of advertisers on the platform. According to X, this boycott was directly linked to the drop in ad revenue recorded after Elon Musk's $44 billion acquisition in 2022.

However, the case did not end with a verdict. As reported by TechCrunch on July 29, 2026, the two parties reached an out-of-court settlement. The terms have not been made public. The market is therefore left to interpret an ambiguous signal: no clear victory for X, and no declared defeat for the WFA.

In particular, the case unfolded during a period of deep transformation for the digital advertising industry. Between 2022 and 2025, many leading brands, including major players in automotive, FMCG and tech, significantly reduced their presence on X. Some did so for brand safety reasons, others because of internal or external pressure tied to the platform's image.

Who gained and who lost during these years of stalemate

The most immediate result is that X's competitors benefited from the void left by fleeing advertisers. Meta, with Facebook and Instagram, further consolidated its dominant position in social advertising. Similarly, LinkedIn attracted B2B budgets that once found an effective distribution channel for thought leadership content on Twitter.

TikTok also captured a growing share of investment, especially in the consumer and retail segments. As a result, X found itself competing on several fronts at once, with a smaller advertiser base and a reputation to rebuild. According to eMarketer data, X's share of the global digital advertising market fell significantly over 2023-2024.

On the other side, the WFA and its member companies have kept a cautious stance. Even so, the settlement suggests that both parties wanted to close the matter without further legal and media exposure. For advertisers, this means the formal chapter is over, but the strategic questions remain open.

SHM Studio's take: what it really means for the Italian media mix

From Milan, we at SHM Studio follow this story from an operational perspective. The question our clients ask us isn't "Did X win or lose?" but "Should we start investing in X again?" It's a fair question, and answering it takes a layered analysis.

First layer: audience. X still has an active user base, especially in finance, technology, politics and media. So for B2B companies or brands that talk about current affairs, the platform keeps its specific relevance. That said, volumes are lower than at the pre-acquisition peak.

Second layer: brand safety. This remains the unresolved issue. Despite the changes to moderation systems introduced in recent years, the perception of association risk hasn't gone away. So for brands with premium positioning or sensitive audiences, the topic needs to be addressed with dedicated verification tools, such as the Gartner reports on digital advertising.

Third layer: cost. Today X offers CPMs and CPCs that are, on average, more competitive than Meta and LinkedIn. So for reach-oriented campaigns on specific segments, it could be an interesting tactical option, to use alongside established platforms, not instead of them.

The unfinished business: brand safety and platform governance

The X-WFA lawsuit raised a broader question that goes beyond the two parties involved. It concerns advertisers' right to coordinate in order to avoid platforms they see as risky for their brand. In particular, the line between legitimate coordination and anticompetitive boycott is thin and still poorly defined in regulatory terms.

In fact, the case has sparked an international debate over who has the power to set brand safety standards in digital advertising. Organizations like the Global Alliance for Responsible Media (GARM), which the WFA founded and then dissolved in 2024 under legal pressure from X, had tried to create shared frameworks. However, its dissolution has left a governance gap that the market has yet to fill.

For Italian marketing managers, this means operating in a context where the rules of the game are still being defined. As a result, relying solely on industry guidelines isn't enough: every company needs to develop its own internal brand safety policy, tailored to its industry and its audience.

Operational implications for media buying strategies in 2026

The X-WFA settlement doesn't change the rules of the game overnight. Still, it offers a few practical takeaways worth considering when planning the second half of 2026 and projections for 2027.

• Selective reassessment of X in your media mix: for specific segments, such as tech, finance and media, X can return as a tactical channel, with limited budgets and continuous performance monitoring. Our digital marketing services include platform analysis to support these decisions.
• Structural diversification: depending on a single social platform remains a risk. A multichannel approach, including LinkedIn campaigns, Google Ads campaigns and owned channels, is the foundation of a resilient strategy.
• Brand safety monitoring: whichever platform you choose, tools that verify the context where your ads appear are now a necessity, not an option.
• Quality content as a lever: on platforms with a more fragmented audience, content quality becomes the deciding factor. Strategic copywriting and relevant content production remain the foundation of any effective paid strategy.

Next moves: what to watch in the coming quarters

Over the coming months, there are at least three signals to watch closely. First: whether or not leading brands return to X, which would indicate market confidence. Second: the possible emergence of new, internationally shared brand safety frameworks after GARM's dissolution. Third: the evolution of engagement and reach metrics on X, which will determine the platform's competitiveness on pure performance.

It's also worth watching how Meta and LinkedIn respond to a potential return of budgets to X. Competition for digital ad budgets is fierce. So competing platforms are likely to introduce new commercial levers or product improvements to retain the advertisers they've won over in recent years.

Finally, for Italian SMEs with limited budgets, the priority is still to focus on channels with high, measurable returns. SEO, web development and AI applied to marketing offer a more stable cost-benefit ratio than exposure on platforms that are repositioning themselves. To dig deeper into these topics, check out our blog or contact the SHM Studio team for a personalized assessment.