Threads Prepares for a Monetization Shift After Fast Growth
Meta, the parent company of Facebook and Instagram, has announced plans to introduce advertising on Threads, its latest social media platform, beginning in January 2025. Launched in mid-2023 as a competitor to X (formerly Twitter), Threads quickly captured a massive user base, hitting 275 million monthly active users in record time. This rapid growth was fueled by Meta’s focus on user experience, as well as a well-timed entrance when X was experiencing shifts under Elon Musk’s ownership.
Building Engagement First: Meta’s Initial Focus for Threads
Unlike previous Meta products, Threads prioritized building a positive user experience over rapid monetization. According to Adam Mosseri, head of Threads and Instagram, the platform’s early success is largely due to this approach, which helped Threads grow from 150 million to 275 million active users within just a few months. Meta’s long-term goal is to position Threads as a major social media destination, but monetization efforts are intended to complement, rather than overshadow, user engagement.
The First Phase of Advertising on Threads: A Controlled Pilot Program
Meta’s cautious approach to monetizing Threads will kick off with a pilot advertising program. Starting next year, a select group of advertisers will gain access to the platform, allowing Meta to experiment with ad placements while monitoring user feedback. This initial phase will be overseen by Instagram’s experienced advertising team, ensuring that the ads blend seamlessly into the Threads experience. Meta CFO Susan Li clarified that while ads will be introduced, they are not expected to contribute significantly to revenue in 2025; instead, the focus is on enhancing user value and gradually building Threads as an advertising-friendly platform.
Competing with X: Offering Advertisers an Alternative
Meta’s move to introduce ads on Threads comes at a critical time for X. Since Elon Musk took over, X has seen substantial changes in content moderation policies, causing some brands to reduce or entirely pause their ad spending due to concerns over brand safety. Recently, X filed a lawsuit against corporations like Mars and CVS Health, accusing them of coordinating an ad boycott, which contributed to revenue loss for the platform. By taking a gradual, user-first approach, Meta hopes to position Threads as a safer, more controlled alternative for advertisers seeking to reach large audiences in an environment that prioritizes content standards.
SEE ALSO: Meta Acquires Threads.com: A Strategic Move for Future Growth
Long-Term Strategy: Gradual Monetization with Added Features
As Threads evolves, Meta plans to introduce new features over time that will potentially enhance its appeal as an advertising platform. While profitability isn’t an immediate goal, the addition of these features could make Threads a highly viable advertising channel in the years to come. Li and Mosseri both emphasized Meta’s intent to maintain user satisfaction and engagement at the forefront of Threads’ growth strategy, setting the foundation for sustained advertising success in the long term.
Threads’ Future in a Changing Social Media Landscape
By January 2025, Threads will officially begin its journey into monetization, yet Meta’s measured approach may give it a strategic advantage. In a competitive social media landscape, where platforms frequently battle over ad revenue, Threads offers a balanced alternative focused on long-term user value and brand safety. As Meta continues to adapt Threads with new features, the platform stands to become a unique space for advertisers and users alike, shaping a future where monetization aligns closely with user experience.