Meta to roll out ads on Threads in early 2025

New Delhi: Threads, a Meta platform, has planned to introduce advertisements on the platform starting in January 2025. 

Launched in July of the previous year as a direct competitor to X (formerly known as Twitter), Threads has already amassed 275 million monthly active users (reported in October 2024).

The initiative to bring advertising to Threads is being spearheaded by a specialised team within Instagram's advertising division. 

According to reports, the platform will begin with a limited rollout, allowing only a select group of advertisers to initially engage in creating and publishing ads. 

The decision to monetise Threads comes at a time when its rival, X, faces challenges with advertiser confidence following significant policy changes and a high-profile lawsuit against a global advertising alliance, accusing them of boycotting the site. This has led to a noticeable slump in ad revenue for X since Elon Musk's acquisition in 2022. 

The introduction of ads on Threads is not expected to be a major revenue driver for Meta in 2025, as highlighted by CFO Susan Li during an October earnings call. However, this step is seen as a strategic expansion of Meta's advertising ecosystem, potentially drawing advertisers looking for new avenues to reach audiences, especially those who might be migrating from X due to its recent tumultuous changes.

Industry observers note that the timing of ad introductions on social platforms can significantly impact user retention and satisfaction. While too early an introduction might alienate users enjoying an ad-free environment, waiting too long could jeopardise the platform's financial viability.