Departments Cut Social Media Ad Spend, Ditch X

Government departments in Canada have significantly reduced their advertising spend on X (formerly Twitter) and TikTok, while simultaneously increasing investment in Meta’s Facebook and Instagram platforms. The shift, revealed in the government’s annual ad spending report, reflects a broader trend of scrutiny towards social media giants and ongoing negotiations with Meta regarding the Online News Act.

According to the report, government spending on TikTok advertising plummeted from approximately 2023–2024 to 2024–2025, decreasing from around $1.1 million to roughly $180,000. Spending on X ads experienced a similar decline, falling from approximately $207,000 to less than $40,000 over the same period. Conversely, ad spending on Facebook and Instagram rose from about $500,000 to approximately $1.4 million.

This reallocation of funds comes amidst heightened debate surrounding the role of social media platforms in disseminating news and information, particularly in the context of the Online News Act. The Act, passed in 2023, requires large tech companies to compensate Canadian news publishers for the use of their content. Meta responded by blocking access to Canadian news on its platforms, Facebook and Instagram, a move that prompted discussions with Canadian lawmakers.

The government’s increased spending on Facebook and Instagram appears to coincide with these negotiations, suggesting a strategic effort to maintain a presence on platforms that have not actively restricted access to Canadian news. However, Public Services and Procurement Canada, the department responsible for overseeing ad spending, declined to comment on the rationale behind the shift.

The changes at X, however, may be driven by factors beyond the Canadian legislative landscape. Recent alterations to X’s advertising policies are making it more difficult – and potentially more expensive – for advertisers to reach users. As of July 30, 2025, X began implementing an “aesthetic score” for advertisements, favoring visually appealing ads that eschew elements like emojis, hashtags, and direct links. Ads deemed less aesthetically pleasing will face higher costs and reduced visibility.

According to Monique Pintarelli, X’s head of Americas, the company is aiming to improve the user experience by prioritizing “beautiful” ads and discouraging what she described as “low-quality, spammy-type advertising.” This approach means that advertisers who want to circumvent the aesthetic guidelines will have to pay a premium for increased reach. The company is algorithmically suppressing ads it doesn’t deem visually appealing.

This move by X is occurring at a time when the global digital advertising market is substantial – estimated at roughly $740 billion – but also plagued by issues like invalid traffic (IVT), which currently averages around 8.51%. The focus on aesthetics could be interpreted as an attempt to attract higher-quality advertisers and differentiate X from platforms perceived as being overrun with low-effort advertising.

The shift in government ad spending also reflects a broader trend of re-evaluation of advertising strategies across various sectors. The government’s annual ad spending report, which revealed these changes, has come under increased scrutiny as policymakers grapple with the influence of social media platforms and the need to ensure responsible advertising practices.

Beyond the Canadian context, the relationship between government and tech companies is evolving. The dynamic between former U.S. President Donald Trump and Elon Musk, owner of X, provides a case study in the complexities of these interactions. While initially supportive, their relationship reportedly deteriorated, highlighting the potential for political factors to influence tech company strategies.

The changes at X, coupled with the government’s spending adjustments, suggest a growing awareness of the need for diversification in advertising channels. Advertisers are increasingly exploring alternative platforms, including those within the Web3 space, as they seek to navigate the evolving landscape of social media and digital advertising. The rise of Web3 advertising, while still in its early stages, is being fueled by the limitations and challenges presented by traditional platforms like X.

The government’s decision to reduce spending on X and TikTok, while increasing investment in Facebook and Instagram, is a clear indication of its priorities in the current media environment. It remains to be seen how these changes will impact the reach and effectiveness of government communications, but they underscore the growing importance of strategic advertising decisions in a rapidly evolving digital landscape.