March 26 (Reuters) - Elon Musk-owned social media

platform X is poised for the company's first year of advertising

revenue growth since its acquisition by the billionaire in 2022,

data from research firm Emarketer showed on Wednesday.

Brands are returning to X at a time when Musk's influence

has grown in the Trump administration, with the Tesla

CEO's key role in the U.S. Department of Government Efficiency.

In 2025, X's U.S. ad revenue is expected to grow 17.5% to

$1.31 billion, while global ad sales are estimated to rise 16.5%

to $2.26 billion, according to Emarketer.

"Some of this year's growth is also being driven by fear.

Many advertisers may view spending on X as a cost of doing

business in order to mitigate potential legal or financial

repercussions," said Jasmine Enberg, principal analyst at

Emarketer.

Enberg said X has managed to attract small- and medium-sized

businesses, which the company has historically struggled with.

Social platforms including Meta Platforms ( META )-owned

Instagram and short-video app TikTok jostle for a larger share

of the ad market that could be impacted by U.S. tariffs and

economic uncertainty.

MoffettNathanson on Monday trimmed its U.S. advertising

growth forecast to more than 5.8% from over 6.9%, citing a

flurry of changes brought by the new administration.

"The whiplash of tariff announcements and federal job cuts

have created heightened uncertainty for businesses and markets

alike," the brokerage said.

Emarketer's data showed that even with the projected

spending increase, X's ad business is still smaller than it was

when Musk acquired the company for $44 billion in late 2022.

As a private company, X does not disclose financial data. In

2021, it had reported ad revenue of $4.51 billion as a publicly

traded company.

X did not immediately respond to a Reuters request for

comment.

It had hired NBCUniversal advertising chief Linda Yaccarino

as CEO in 2023.