Meta to Introduce Ads on Threads in 2024: Will it Steal Market Share from X?

Get ready for ads on Threads! Meta Platforms, the tech giant behind Facebook and Instagram, is reportedly planning to introduce advertisements on its social media app, Threads, early next year. This move, first reported by The Information, marks a significant step for the relatively young platform, which launched in July 2023 as a potential rival to Twitter, now rebranded as X.

Threads has seen impressive growth since its launch, attracting 275 million monthly active users, a figure that Meta CEO Mark Zuckerberg touted last month. The company’s strategy appears to be focused on attracting users from X, which has been in turmoil since its acquisition by billionaire Elon Musk.

The introduction of ads on Threads is part of a wider effort by Meta to capitalize on the platform’s burgeoning user base. A select group of advertisers will be able to test the waters starting in January, with the initiative reportedly spearheaded by a team within Instagram’s advertising division.

However, Meta isn’t expecting Threads to be a major revenue generator in 2025. Chief Financial Officer Susan Li stated during a post-earnings call in October that Meta plans to prioritize user experience and feature development over monetization in the initial stages of Threads.

Meta’s announcement comes at a time when X is facing challenges in retaining advertisers. Musk’s leadership has led to significant changes at the platform, including controversial policy shifts and the introduction of new features that have drawn criticism from some users. This, combined with concerns about potential associations with problematic content, has led to a decline in ad revenue for X.

The introduction of ads on Threads could present a compelling alternative for advertisers seeking a platform with a more user-friendly environment. While Meta plans to take a measured approach to monetization, the company’s move suggests that it sees Threads as a potential long-term revenue stream. Whether or not Threads can successfully attract advertisers away from X remains to be seen, but the upcoming launch of advertising on the platform is sure to be a significant development in the social media landscape.

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