X and WFA: legal agreement and impact on social media buying

The history 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. This boycott, according to X, was directly linked to the drop in advertising revenue recorded after Elon Musk's acquisition in 2022 for $44 billion.

However, the case did not end with a verdict. As reported by TechCrunch July 29, 2026, the two parties reached an out-of-court settlement. The terms were not made public. Therefore, the market is left to interpret an ambiguous signal: neither a clear victory for X, nor a declared defeat for the WFA.

In particular, the situation went through a period of profound transformation for the digital advertising sector. Between 2022 and 2025, many leading brands—including major groups in the automotive, FMCG, and tech sectors—had significantly reduced their presence on X. Some did so for brand safety reasons, others due to internal or external pressures related to the platform's image.

Who gained and who lost in these years of stalemate

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

Furthermore, TikTok has captured an increasing share of investment, particularly in the consumer and retail segments. As a result, X has found itself competing on multiple fronts simultaneously, with a reduced advertiser base and a reputation to rebuild. According to data eMarketer, X's market share in global digital advertising has fallen significantly in the 2023-2024 period.

On the other hand, the WFA and its associated companies maintained a cautious stance. Nevertheless, the agreement reached suggests that both parties had an interest in closing the matter without further legal and media exposure. For advertisers, this means the formal chapter is closed, but strategic questions remain open.

Reading SHM Studio: What it Really Means for the Italian Media Mix

From Milan, we at SHM Studio Let's follow this story from an operational perspective. The question our clients ask us is not «Did X win or lose?», but «Should we invest in X again?». This is a legitimate question, and the answer requires a layered analysis.

First level: Audience. X maintains an active user base, particularly in segments related to finance, technology, politics, and media. Therefore, for companies with a B2B positioning or brands communicating on current events, the platform retains specific relevance. However, volumes are lower compared to the pre-acquisition peak.

Second level: brand safety. This remains the unsolved issue. Despite changes in moderation systems introduced in recent years, the perception of associative risk has not disappeared. Therefore, for brands with a premium positioning or sensitive audiences, the topic must be addressed with specific verification tools, such as reports from Gartner on digital advertising.

Third level: cost. X currently offers more competitive CPM and CPC on average compared to Meta and LinkedIn. Therefore, for campaigns focused on reach within specific segments, it could represent an interesting tactical option, to be used alongside—not as a replacement for—established platforms.

The unfinished construction site: brand safety and platform governance

The X-WFA case has raised a broader issue that goes beyond the two parties involved. It concerns the right of advertisers to coordinate in order to avoid platforms perceived as risky for their brand. In particular, the line between legitimate coordination and anti-competitive boycott is fine and still poorly defined at a regulatory level.

Indeed, the case has sparked an international debate about who has the power to set brand safety standards in digital advertising. Organizations like the Global Alliance for Responsible Media (GARM) – which the WFA had founded and then dissolved in 2024 under legal pressure from X – had attempted to create shared frameworks. However, their dissolution has left a governance vacuum that the market has not yet filled.

For Italian marketing managers, this means operating in a context where the rules of the game are still being defined. Consequently, relying solely on industry guidelines is not enough: each company must develop its own internal brand safety policy, tailored to its specific sector and audience.

Operational Implications for Media Buying Strategies in 2026

The X-WFA agreement does not immediately change the game rules. However, it offers some operational insights worth considering in the planning for the second half of 2026 and projections for 2027.

• Selective Re-evaluation of X in the Media Mix: for specific segments — tech, finance, media — X can be included as a tactical channel, with limited budgets and continuous performance monitoring. Our activities digital marketing include platform analysis to support these decisions.
• Structural diversification Reliance on a single social media platform remains a risk. Therefore, a multi-channel approach—one that includes LinkedIn campaign, Google Ads campaigns Owned channels are the foundation of a resilient strategy.
• Brand safety monitoring Regardless of the platform chosen, having tools to verify the publication context is a necessity today, not an option.
• Quality content as leverage On platforms with a more fragmented audience, content quality becomes a deciding factor. The Strategic copywriting and the production of relevant content remain the foundation of any effective paid strategy.

Next moves: what to watch in the coming quarters

In the coming months, there are at least three signals to monitor closely. First: the return or not of major brands to X, which would serve as an indicator of market confidence. Second: the possible emergence of new internationally shared brand safety frameworks, following the dissolution of GARM. Third: the evolution of engagement and reach metrics on X, which will determine the platform's competitiveness on a purely performance basis.

Furthermore, it's worth observing how Meta and LinkedIn will respond to a potential return of budgets to X. The competition for digital advertising budgets is intense. Therefore, competing platforms are likely to introduce new commercial levers or product improvements to retain advertisers acquired in recent years.

Finally, for Italian SMEs with limited budgets, the priority remains focusing on channels with measurable high returns. The activities of SEO, web development e artificial intelligence applied to marketing They offer a more stable cost-benefit ratio compared to exposure on platforms undergoing repositioning. To learn more about these topics, please see our blog o Contact the SHM Studio team for a personalized evaluation.