Meta Introduces Ads on Threads in 2025

Meta Platforms, the parent company of Facebook and Instagram, is set to introduce advertisements on its social media app, Threads, in early 2025. This news comes from a report by The Information, which cites three individuals familiar with the company's plans. Threads was launched in July 2022 as a competitor to X, previously known as Twitter, aiming to attract users during a tumultuous period marked by billionaire Elon Musk's takeover of the platform.

Since its launch, Threads has experienced significant growth, reaching 275 million monthly active users, as stated by Meta CEO Mark Zuckerberg last month. This rapid increase in user engagement indicates that Threads is carving out its niche in the crowded social media landscape. According to the report, Threads will allow a select group of advertisers to create and publish ads starting in January 2025. A dedicated team from Instagram's advertising division is spearheading this initiative.

Despite the upcoming introduction of ads, Meta's Chief Financial Officer, Susan Li, has indicated that the company does not anticipate Threads to be a substantial contributor to its revenue in 2025. During a post-earnings call in October, she emphasized that the primary focus remains on enhancing consumer value, stating, "Since our priority is to build consumer value first and foremost, there are no ads or monetization features currently on Threads." This approach suggests that Meta is prioritizing user experience over immediate financial gain.

Threads may attract advertisers looking for alternatives to X, especially as the latter has faced challenges under Musk's leadership. In August, X filed a lawsuit against a global advertising alliance and several major companies, including Mars and CVS Health, alleging that they conspired to boycott the platform, which has negatively impacted its revenue. Following Musk's acquisition of X in 2022, the platform's ad revenue has seen a significant decline, as many advertisers have expressed concerns about their brands being associated with potentially harmful content.

As Threads prepares to enter the advertising space, it will be interesting to see how it positions itself against X and whether it can maintain its user base while attracting advertisers. The introduction of ads could mark a pivotal moment for Threads, potentially reshaping the dynamics of social media advertising. For users, this development raises questions about the future of their experience on the platform. Will Threads manage to balance user satisfaction with the demands of advertisers? Only time will tell, but one thing is clear: the competition in the social media arena is heating up.