Local Advertisers Shifted Ad Budgets Away From X in 2026

As businesses reallocate spending toward LinkedIn, marketers should reevaluate their platform-specific ROI.

Updated on Sept. 25, 2026 in Advertising

Local Advertisers Shifted Ad Budgets Away From X in 2026

Live Poll

Is it currently a good time for your business to invest in social media advertising?

In 2026, local advertisers consistently reduced spending on X, marking the third consecutive year the platform ranked first for budget cuts. While Facebook and Instagram maintained their lead in actual ad investments, businesses increasingly pivoted their social media usage toward LinkedIn.

Why it matters

The shift reflects a broader adjustment in social media strategy as businesses seek platforms that offer better alignment with their marketing goals. With ad budgets remaining steady as of August 2026, operators are prioritizing channel effectiveness over platform tenure.

LinkedIn usage among local advertisers climbed to 41% in 2026 compared to 35% in 2025, with ad buying on the platform reaching 14%. Conversely, 38% of businesses remaining on X report decreased activity on the platform.

The players

Borrell Associates

A research firm specializing in local media and advertising market data.

A professional networking platform that has become an increasingly central channel for B2B and local advertising.

A microblogging social media service that has seen declining adoption and ad spending among local businesses.

The details

Local advertisers continue to prioritize Facebook and Instagram for their primary ad investments, showing a stable preference for these established networks. Meanwhile, many businesses are evaluating TikTok and YouTube for future marketing opportunities, signaling a move away from X as a primary advertising destination. For operators, this movement highlights the importance of auditing platform-specific engagement metrics to ensure marketing spend aligns with target audience reach.

2024: Local advertisers were asked about social platform usage.
2025: LinkedIn usage among local advertisers was 35%.
2026: LinkedIn usage rose to 41% and ad buying to 14%.
August 2026: Small businesses held ad budgets steady.

Market Landscape

This trend follows the pattern established by the 2026 Borrell Associates survey of small and midsize business marketing trends, which tracks the migration of ad dollars across social platforms. The decline of X marks a significant departure from previous years where the platform maintained higher levels of advertiser participation.

Operators should review their own social media performance metrics to determine if the engagement on X still justifies current budget allocations. When performance falls behind newer, growing platforms like LinkedIn, it may be time to shift spend to improve overall marketing ROI.

The takeaway

The data underscores a clear preference for platforms that offer better reach and engagement for local businesses. Operators should track the conversion rates of their social ad spend quarterly to identify when a platform's utility drops below the threshold for continued investment.