Parent company of Facebook and Instagram, Meta is preparing to introduce ads on its social media platform Threads beginning January 2025. Launched in mid-2023 as a competitor to X (formerly Twitter), Threads was initially developed to attract users amid shifts on X following Elon Musk’s acquisition. Since its debut, Threads has seen rapid growth, amassing 275 million monthly active users. Until now, Meta has focused on enhancing user experience over monetization.
Starting next year, Meta plans to roll out a pilot advertising program on Threads, allowing a limited group of advertisers to post ads. The Instagram advertising team will oversee this trial, maintaining a controlled approach to ads on the platform. Meta’s CFO, Susan Li, noted that while Threads is unlikely to significantly impact revenue in 2025, the move aims to enhance user value over immediate profitability. She added that new features would gradually be introduced, potentially making Threads more attractive as an advertising channel in the future.
Threads’ ad launch arrives as X struggles with advertiser retention. Changes in X’s content policies under Musk’s leadership have prompted some brands to reassess ad spending due to concerns over brand safety. Recently, X filed a lawsuit against several major corporations, including Mars and CVS Health, accusing them of a coordinated ad boycott contributing to revenue declines.
With Threads, Meta’s cautious approach may position the platform as a more stable alternative for brands seeking reliable ad environments. Adam Mosseri, head of Threads and Instagram, recently highlighted Threads’ user growth from 150 million to 275 million monthly active users within months. As Meta continues to invest in Threads, its long-term goal is to establish the platform as a major player in social media, prioritizing user engagement over early monetization.
