Meta, the parent company of popular social media platforms like Facebook and Instagram, is preparing to introduce Meta ads on Threads starting in January 2025. This major step will allow a select group of advertisers to begin running ads on the Threads app, signaling the start of Meta’s plan to monetize the platform.
Reports suggests that Meta will initially allow a small group of advertisers to run ads on Threads starting in January 2025.
Meta plans to manage the advertising initiative through its Instagram advertising division, which is leading the charge on this new feature. However, the company has made it clear that monetization on Threads won’t be the top priority during the app’s early stages. Meta’s current focus is on improving the app’s consumer value before diving into ads and other monetization features.
Since launching in July 2023, Threads has rapidly gained traction, positioning itself as a competitor to X (formerly Twitter). The introduction of Meta ads on Threads signals a new phase in the platform’s evolution and growth.
Revenue Expectations for Meta Ads on Threads
Despite the upcoming ad rollout, Meta’s CFO, Susan Li, has stated that Threads is not expected to become a “meaningful driver” of revenue in 2025. The company’s main priority is still focused on building consumer value rather than monetization. “Since our priority is to build consumer value first and foremost, there are no ads or monetization features currently on Threads,” Li explained.
Li also mentioned that Meta will gradually introduce more features to Threads over time. These features may help increase the app’s potential as a revenue-generating platform in the future, although the initial ad rollout will be limited.
Competitive Pressure from X
The introduction of Meta ads on Threads could provide the platform with a competitive edge over X, which has faced challenges in maintaining its advertiser base since Elon Musk took over the platform. In August 2024, X filed a lawsuit against major companies like Mars and CVS Health, accusing them of conspiring to boycott the platform, contributing to a drop in its ad revenue.
Advertisers have raised concerns about brand safety on X, especially following its shift in content moderation policies under Musk. As Meta ads on Threads are introduced, it will be interesting to see how this change affects the dynamics of the social media advertising landscape.
What You Should Know About Threads
Threads has experienced significant growth since its launch in 2023. Adam Mosseri, the head of Threads and Instagram, recently disclosed that the platform now boasts 275 million monthly active users, demonstrating its growing popularity. This substantial growth, a remarkable 57.14% increase since July 2024, highlights the app’s increasing influence as it continues to compete with X.
In April 2024, Meta’s CEO, Mark Zuckerberg, announced that Threads had surpassed 150 million monthly active users. By July 2024, the app had grown to over 175 million active users. With Meta ads on Threads set to roll out in 2025, these numbers are expected to increase, as the platform continues to refine its features and attract new users.
