X is introducing new advertising targeting capabilities to attract content creators and compete more effectively and able to complete with platform like Youtube.
Here's some fact about X Platform reach and user base:
X has 535 million global monetizable monthly active users (mMAU).
It's considered the #1 platform for discovery.
There's been a 12.5% year-over-year growth in time spent on X, with users spending an average of 30.9 daily minutes on the platform
It's clear that the platform's reach and engagement are robust. Given these metrics, prioritizing ad targeting features to attract larger advertiser and compete with platforms like YouTube makes strategic sense.