Threads, the social media app Meta launched in July 2023 as a challenger to X (formerly Twitter), is preparing to enter a new phase of its journey.
According to a recent report by The Information, Meta plans to introduce advertisements to Threads early next year, starting with a small group of advertisers in January.
If you've been following Threads’ rapid growth, you’ll know it was born out of the chaos surrounding Elon Musk’s acquisition of Twitter.
With X facing a turbulent overhaul and advertiser scepticism, Threads emerged as a promising alternative, offering a fresh, minimalist design and a cleaner content ecosystem.
But what does the move to introduce ads mean for Threads’ users and the advertising world?
Let’s break it down.
When Threads launched in mid-2023, it was clear that Meta had its sights set on winning over disillusioned Twitter/X users. The timing was perfect. Musk’s changes at X, including new subscription models and policy shifts, have left many users frustrated.
Threads offers a sanctuary for those looking for a familiar yet distinct micro-blogging experience.
Within months, Threads gained serious traction. Meta CEO Mark Zuckerberg recently shared that the app now boasts a staggering 275 million monthly active users.
This level of adoption is impressive, even by Meta’s standards, and underscores the app’s potential to rival X in the long run.
Meta’s core revenue model revolves around advertising, so it was only a matter of time before Threads joined the lineup. According to reports, a specialised team within Instagram's advertising division is spearheading the initiative. Ads will initially roll out to a limited number of advertisers, signalling a cautious approach to ensure the user experience remains intact.
Meta appears to be taking a measured stance on monetization. CFO Susan Li noted during an earnings call in October that the company doesn’t expect Threads to significantly impact revenue in 2025. This suggests that Meta is prioritising user retention and engagement over immediate profits.
A Meta spokesperson echoed this sentiment, emphasising that Threads’ current focus is on building consumer value. This contrasts sharply with X’s approach under Musk, which has been heavily centred on monetization, sometimes at the expense of user experience.
While specific ad formats haven’t been disclosed, we can anticipate that Threads ads will borrow elements from Instagram and Facebook.
This could include:
Native Ads: Seamlessly integrated into Threads’ feed to match the app's clean aesthetic.
Sponsored Posts: Paid content by advertisers aimed at engaging users without disrupting their browsing experience.
Story-like Features: Threads may eventually incorporate ephemeral ad formats similar to Instagram Stories.
The emphasis is likely to remain on unobtrusive, high-quality ads that resonate with the platform’s community.
Threads’ introduction of ads comes at a time when X is grappling with significant challenges under Musk’s leadership. Many advertisers have pulled back from X, citing concerns about their brands being associated with inappropriate or harmful content. These fears intensified after Musk implemented a more hands-off content moderation policy.
In August, X even filed a lawsuit against a global advertising alliance and major brands, accusing them of conspiring to boycott the platform. While the outcome of this lawsuit remains uncertain, the optics are clear: advertisers are nervous about investing in X.
Threads, by contrast, offer a fresh start. With Meta’s robust ad infrastructure and a reputation for effective targeting, the platform is well-positioned to attract advertisers looking for a safer, more stable environment.
For regular users, the introduction of ads is always a mixed bag.
On the one hand, ads help sustain the app and fund new features. On the other hand, they can feel intrusive if not implemented thoughtfully. Meta has promised to prioritise user value, but only time will tell how this will play out.
Here are a few likely scenarios:
Enhanced Features: Revenue from ads could fund the development of new tools and capabilities on Threads.
Data-Driven Ads: Given Meta’s expertise in targeted advertising, Threads’ ads could feel relevant rather than random.
Potential Backlash: Even with care, some users may resist the idea of ads, especially if they impact the app's clean interface.
From an advertiser’s perspective, Threads represents a golden opportunity. The platform's rapid user growth and Meta’s proven advertising ecosystem make it an attractive proposition.
Audience Reach: With 275 million active users and counting, Threads offers access to a diverse, engaged audience.
Advanced Targeting: Meta’s data-driven tools can help brands reach their ideal customers with precision.
Low Competition (For Now): Early adopters of Threads ads could benefit from less crowded ad space compared to more mature platforms like Instagram or Facebook.
For businesses eager to diversify their digital advertising efforts, Threads could serve as an essential addition to their strategy.
Meta’s cautious rollout of ads on Threads highlights a significant difference in strategy compared to X. While X has struggled with advertiser retention due to content moderation concerns, Threads can build trust by prioritising quality and relevance in its ad offerings.
However, there’s no guarantee of success. Meta must strike a delicate balance between monetization and maintaining a positive user experience. Too many ads, or poorly executed ones, could alienate users and slow the app’s growth.
As Threads evolves, it faces the challenge of carving out a distinct identity while competing with X. Meta’s decision to introduce ads shows confidence in Threads’ staying power but also underscores the pressure to make the app financially viable in the long term.
For users, the changes may feel gradual at first, but the shift toward monetization marks a pivotal moment in Threads’ journey. Advertisers, meanwhile, have a chance to capitalise on a new, untapped market.
Meta’s plans to introduce ads on Threads in early 2025 signal the app’s transition from a promising newcomer to a serious player in the social media landscape. While some users may greet the change with scepticism, Threads’ thoughtful approach to monetization could set it apart from competitors like X.
As someone who’s seen the power of effective advertising strategies firsthand, I can’t help but see the potential here.
If you’re a brand looking to navigate this exciting new space, Uniworld Studios, a full-service digital marketing agency, can help you craft campaigns tailored to your audience. From maximising ROI to ensuring your ads blend seamlessly into platforms like Threads, we’ve got you covered.
Ready to explore the future of digital advertising? Let’s connect!