Meta Plans to Launch Ads on Threads in Early 2025: Report

Meta Platforms has plans underway to roll out advertising options on its Threads app in early 2025, according to a report by The Information. The report, citing individuals with insider knowledge, reveals that Meta aims to incorporate a limited advertising feature on the Threads platform, following its rapid rise in popularity since its launch last year. Threads, which was introduced as a direct competitor to X (formerly Twitter), has grown significantly, establishing itself as a strong alternative in the social media landscape.

Threads’ Launch as a Challenger to X

Threads was launched by Meta in July last year, strategically positioned as a competitor to X, the rebranded version of Twitter. The app's debut came during a time of upheaval on X, as the platform underwent significant changes after Elon Musk’s acquisition. With a chaotic transition under Musk’s leadership, which saw changes to moderation policies and platform structure, Threads quickly attracted users who were seeking an alternative to X’s micro-blogging style. The move proved timely and effective, helping Threads capture a large audience base within a short period.

Rapid Growth of Threads: 275 Million Monthly Users

Since its launch, Threads has achieved impressive growth. Meta CEO Mark Zuckerberg recently announced that Threads had reached an active monthly user base of 275 million—a milestone that reflects its popularity and the strong demand for alternative platforms to X. This rapid growth signals that Threads could be well-positioned to attract advertisers looking for an active, engaged audience, even as Meta acknowledges that it has focused on user experience over immediate monetization.

Early Ad Rollout on Threads Planned for January 2025

According to The Information, Meta will begin by allowing a select group of advertisers to create and publish ads on Threads starting in January 2025. While this initial rollout is expected to be limited in scope, it marks a significant step in Meta’s strategy to monetize the Threads platform. The initiative to introduce advertisements is reportedly being managed by Instagram’s advertising division, which is coordinating efforts to integrate advertising features without compromising the platform’s user experience.

Meta’s Measured Approach to Threads Monetization

Despite the upcoming ad integration, Meta remains cautious about expectations for Threads’ financial impact. In an October post-earnings call, Meta’s Chief Financial Officer Susan Li expressed that Threads is not expected to drive significant revenue in 2025. Li emphasized that Meta’s current focus is to enhance the app’s features and user value, rather than prioritizing aggressive monetization. This statement aligns with Meta’s gradual approach to scaling revenue from Threads, aiming to solidify user engagement before fully leveraging the platform’s advertising potential.

Meta’s Emphasis on Building User Value First

According to a Meta spokesperson, Threads is presently devoid of ads or monetization elements, with the primary focus on delivering value to users. Meta's intention is to ensure that Threads serves its community first, which is likely part of its strategy to build trust and engagement with its user base before introducing ads. By putting user experience at the forefront, Meta aims to create a solid foundation for Threads to succeed as a meaningful platform in the long term.

The Shifting Advertising Landscape and Meta’s Competitive Advantage

As Meta prepares to introduce ads on Threads, the platform may attract brands and advertisers who have been cautious about advertising on X. Under Musk’s ownership, X has experienced fluctuations in ad revenue, partly due to changes in content moderation policies that have raised concerns among advertisers. Several brands, wary of the potential association with content that might be viewed as harmful, have scaled back their ad spending on X.

In a notable development, X filed a lawsuit in August against a global advertising alliance and prominent companies, including Mars and CVS Health, alleging a coordinated effort to reduce advertising on X, which negatively impacted its revenue. This decline in ad revenue represents a potential opportunity for Threads to capture interest from advertisers seeking a stable and brand-safe platform.