We all saw it coming. It wasn’t a matter of if, but when. Just after Threads launched, Mark Zuckerberg hinted at the time that the platform’s focus would be on user retention. But now, with promising engagement metrics, Meta seems ready to cash in.
Last Friday, the company confirmed what many had anticipated: ads are officially being tested on Threads. According to Instagram head Adam Mosseri, the experiment is starting with a select group of brands in the U.S. and Japan. So, if you’re one of Threads’ millions of users, get ready to see “Sponsored” labels popping up in your feed.
Meta’s ad strategy for Threads plans to borrow heavily from its existing successes on Facebook and Instagram, where ads dominate feeds, Stories, and Reels. During this test phase, Meta promises to listen to user feedback and ensure ads feel as relevant as organic content.
To serve more relevant ads, Meta plans to draw on data from activity from Meta platforms including Threads, Instagram, and even your email address. It’s a sophisticated, if not slightly invasive, system—one Meta has perfected over the years to generate staggering revenues. However, the company says it will offer ways to control ad topics and give users options to skip, hide, or report ads.
Meanwhile, Meta’s advertising empire is already massive. In 2023, the company earned $131.9 billion from ads—a 16% jump from the previous year and a jaw-dropping 140% increase since 2018. Adding Threads to this mix could supercharge Meta’s earnings even further. With an estimated 275 million monthly active users as of late 2024, Threads is poised to become yet another lucrative arm of the Meta machine. And for Twitter—pardon, X—that’s likely a bitter pill to swallow.
X already struggles with user retention and advertisers are wary of its chaotic changes, meaning, Threads’ growth—and now its monetization— could pose a direct threat.
For now, WhatsApp remains the only major Meta platform within its app ecosystem without in-app ads, but Threads’ monetization shows that Meta is willing to play the ads game and adapt its products for revenue growth.
