Meta rolls out ads on Threads worldwide

Mumbai: Meta Platforms has announced the global expansion of advertising on its social media platform, Threads, making ads available to all eligible advertisers worldwide. Initially launched in July 2023 as a competitor to X (formerly Twitter), Threads has rapidly grown to over 320 million monthly active users. 

Meta will use this move to diversify revenue streams amid economic uncertainty caused by the ongoing US-China trade tensions.

Over 30 countries, including the United States are said to be included to test advertising rollout, with ads appearing in users' feeds labeled as sponsored. 

Meta will be adhering to community guidelines and ensure that ads don’t appear near the content. 

Meta's strategy is to gradually implement ads to better understand and optimize both user and advertiser experiences. The company began testing ads on Threads in the U.S. and Japan earlier this year, and now plans to expand the feature more broadly 

Due to the ongoing tariff uncertainties, Meta might face potential revenue challenges as Chinese e-retailers would reduce advertising spends. This would mean Meta losing up to USD 7 billion in ad revenue this year due to companies like Shein and Temu decreasing spending on ads. 

Despite these challenges, Meta's performance-based ad model and global advertiser base will help the advertising revenue.