Meta Platforms has announced that it will begin testing advertisements on its social media app, Threads, as it surpasses 300 million monthly active users. This marks a significant milestone for the app and a new revenue opportunity for Meta. The company is initially testing ads in the US and Japan, aiming to refine the user experience before rolling it out more widely.
Starting from Friday, Meta will test image ads placed between content posts in the Threads home feed. The ads will appear for a small percentage of users, giving Meta an opportunity to monitor user reactions and engagement. Meta has emphasized that it will carefully track the effectiveness of these ads before expanding the test to more users.
One key feature of the new ad test is that businesses will be able to extend their current Meta ad campaigns to Threads. This integration will allow brands that already use Meta's advertising tools to easily incorporate Threads into their strategy without having to manage separate campaigns. This step is expected to make the transition smoother for advertisers and encourage them to invest in the platform.
In addition to introducing ads, Meta is also testing an inventory filter feature, powered by AI, that gives advertisers more control over the content adjacent to their ads. This feature allows advertisers to adjust the sensitivity level of the organic content alongside their ads. This move is aimed at ensuring that brands can maintain a safe and brand-friendly environment for their ads, addressing concerns about content alignment.
The introduction of ads on Threads follows Meta’s recent overhaul of content moderation across its platforms, including Threads, Facebook, and Instagram. While this decision may raise eyebrows, it comes at a time when volatility at TikTok is pushing brands to seek stable alternatives. Jasmine Enberg, a principal analyst at eMarketer, noted that Meta is seizing an opportunity to position Threads as an alternative for advertisers seeking a reliable platform in the face of uncertainty at TikTok.
Earlier in January 2024, Meta scrapped its US fact-checking program across its platforms, which impacted Facebook, Instagram, and Threads. With over 3 billion users across its platforms globally, Meta's shift in content moderation policy signals a more lenient approach to managing user-generated content. This strategy may be seen as both an opportunity and a challenge for advertisers, who may need to navigate a broader range of content on these platforms.
Launched in July 2023, Threads was introduced as a competitor to X (formerly Twitter) to capitalize on the disruption caused by Elon Musk’s chaotic takeover of Twitter. Meta aimed to attract users from X by offering a more stable and user-friendly microblogging platform. Despite this, Meta has not expected Threads to generate significant revenue in the short term. Meta's CFO, Susan Li, stated that Threads is not likely to be a major contributor to revenue in 2025.
In line with its broader strategy to stay ahead in the competitive tech landscape, Meta is making significant investments in artificial intelligence. CEO Mark Zuckerberg revealed that Meta plans to allocate as much as $65 billion in 2024 to strengthen its AI infrastructure. This move is part of Meta's broader efforts to stay competitive with rivals such as OpenAI and Google, which are leading the way in the AI race.
Conclusion
Meta’s decision to introduce ads on Threads is a strategic move that comes at a crucial time in the social media landscape. As the platform continues to grow, these ads will not only help generate revenue but also offer advertisers a new avenue for engagement. With AI-powered tools and the backing of Meta’s extensive ad infrastructure, Threads could emerge as a strong contender in the digital advertising market, especially as brands look for alternatives to platforms like TikTok.