By Milcah Tanimu
Meta, the parent company of Facebook and Instagram, will introduce advertisements on Threads, its new social media platform, in January 2025. This move marks a significant step in Meta’s plans to monetize Threads, which launched in July 2023 as a competitor to X (formerly Twitter).
According to sources cited by Reuters, Meta plans to start with a small group of advertisers to test ads on Threads. The initiative will be overseen by Instagram’s advertising division, though Meta has stated that monetization isn’t an immediate priority for the platform’s development.
Revenue Strategy and Growth Plans
While ads will begin appearing on Threads, Meta CFO Susan Li has indicated that Threads is not expected to contribute significantly to revenue in 2025. Instead, Meta aims to focus on building consumer value on the platform before heavily monetizing it.
Li also noted that new features will gradually be added to Threads, potentially enhancing its revenue potential over time. Threads has grown rapidly, now reaching 275 million monthly active users as of November 2024, reflecting a 57% increase since July 2024.
Competitive Landscape
Introducing ads on Threads could provide Meta an edge over X, which has faced advertiser concerns about brand safety since Elon Musk acquired it. X has also experienced a drop in ad revenue, and its recent lawsuit against major brands like Mars and CVS Health highlights the platform’s struggles to maintain advertiser support.
With Threads’ advertising strategy set to launch, Meta aims to leverage its rapidly growing user base and attract advertisers seeking an alternative to X. Adam Mosseri, Head of Threads and Instagram, disclosed that Threads now boasts 275 million monthly active users—a clear sign of its expanding popularity and Meta’s success in competing with other social media platforms.
