Meta Platforms Inc. META is set to introduce advertisements on its social media platform, Threads. The ads will initially be rolled out in the United States and Japan, starting with a select group of brands, according to a post by Instagram boss Adam Mosseri.
What Happened: Mosseri announced the move on Friday, describing it as a “test.” Meta plans to closely monitor the results of this test before considering a broader rollout. The goal is to ensure that advertisements on Threads are as engaging as organic content, Mosseri stated.
“We’re starting a small test for ads on Threads with a handful of brands in the US and Japan. We know there will be plenty of feedback about how we should approach ads, and we are making sure they feel like Threads posts you’d find relevant and interesting.”, Mosseri said in a post on Threads.
Launched by Meta’s Instagram team in mid-2023, Threads is positioned as a rival to Elon Musk’s X. As of December, Threads has achieved 300 million monthly users and over 100 million daily users, according to CEO Mark Zuckerberg.
While the long-term revenue potential for Threads remains uncertain, it will leverage Meta’s existing advertiser base and its capability to target consumers precisely.
Analyst Jasmine Enberg from Emarketer noted that the move might capitalize on the current instability in the social media sector, considering X’s challenges and uncertainties surrounding TikTok.
Why It Matters: The introduction of ads on Threads comes amid a period of significant growth for the platform. In December 2024, Threads reached 100 million daily active users, as Meta capitalized on users migrating from Elon Musk’s X to alternative platforms.
In early December 2024, Threads introduced new search tools to enhance user experience, allowing refined searches by profile and date range. This move was part of Meta’s strategy to compete with X and the rapidly growing Bluesky.
Back in November 2024, it was reported that Meta planned to introduce ads on Threads in early 2025, as X was losing favor with major brands. This strategic move aims to capitalize on Threads’ rapid expansion, with monthly active users reaching 175 million by the end of June 2024.
Meta’s decision to introduce ads on Threads is a significant step in its ongoing battle with X for social media dominance. As of October 2024, Threads had averaged 1 million new sign-ups daily, highlighting its potential as a fast-growing platform.
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