Meta is set to initiate a trial of advertisements on its microblogging platform, Threads, in collaboration with a select group of companies based in the United States and Japan.
This is Meta’s inaugural attempt to generate revenue from Threads, which was launched in July 2023 as a competitor to X, formerly known as Twitter. Elon Musk acquired Twitter for $44 billion in late 2022, and Meta’s Threads has since positioned itself as a significant alternative.
“We’ll closely monitor this test before scaling it more broadly, with the goal of getting ads on Threads to a place where they are as interesting as organic content,” said Adam Mosseri, who leads Instagram and oversees Threads.
During the trial phase, a limited subset of Threads users will encounter ads featuring prominent images within their feeds. These ads will be designed to resemble the sponsored content commonly seen on Facebook and Instagram.
To ensure brand safety, participating businesses will have access to tools that prevent their sponsored content from appearing alongside inappropriate material. Meta’s existing monetisation policies will apply to Threads, ensuring that content violating community standards is not eligible for ad adjacency.
Threads boasts an impressive user base of over 300 million monthly active users, with three-quarters of users following at least one business account. Some investors believe that Threads could eventually become a substantial revenue source for Meta, comparable to Twitter’s pre-acquisition figures. In 2021, Twitter’s annual revenue reached $5 billion.
However, Meta’s Chief Financial Officer, Susan Li, noted during the company’s third-quarter earnings call that while pleased with Threads’ growth trajectory, they do not anticipate it to significantly contribute to revenue in 2025.
“Specifically, as it pertains to monetisation, we don’t expect Threads to be a meaningful driver of 2025 revenue at this time,” Li stated.
Meta plans to provide additional details on third-party advertising verification tools and support for more languages in the coming months. The announcement of Threads ads follows Meta’s recent decision to relax content moderation guidelines and discontinue its third-party fact-checking program to promote more “free expression” on its platforms.
This also comes amidst changes in social media, including the recent challenges faced by TikTok. The volatility surrounding TikTok has prompted brands to seek alternative platforms, and Meta is capitalising on this opportunity.