Meta has announced that it will begin testing advertisements on its Threads platform with a select group of companies in the U.S. and Japan. This marks the social media giant’s first step toward monetizing Threads, which launched in July 2023 as a competitor to X (formerly Twitter).
According to Adam Mosseri, head of Instagram and the executive overseeing Threads, the company aims to integrate ads in a way that makes them as engaging as organic content. The initial test will involve a small number of users who will see ads with large images embedded within their feeds, similar to the sponsored content found on Facebook and Instagram.
Businesses participating in the trial will have access to Meta’s existing brand-safety tools, which ensure that ads do not appear alongside offensive or harmful content. The company stated that Threads will follow the same monetization policies as its other platforms, meaning that content violating Meta’s Community Standards will not be eligible for ad adjacency.
Since its launch, Threads has attracted over 300 million monthly users, with Meta reporting that three out of four users follow at least one business on the platform. Some analysts believe Threads has the potential to develop into a significant revenue source for Meta, similar to Twitter’s pre-acquisition business model, which generated $5 billion in annual revenue in 2021.
Despite the promising growth trajectory, Meta’s Chief Financial Officer Susan Li stated that the company does not expect Threads to be a major revenue driver in 2025. However, Meta plans to expand its advertising features over time, with additional tools and language support expected in the coming months.
The introduction of ads on Threads coincides with Meta’s recent adjustments to its content moderation policies. Earlier this month, the company announced that it would relax certain guidelines and phase out its third-party fact-checking program to promote greater “free expression” on its platforms.
Meta’s move also comes amid broader shifts in the social media landscape. Recently, Apple and Google removed TikTok from their app stores following legislative action requiring its parent company, ByteDance, to divest the platform or face a potential ban in the U.S. This uncertainty around TikTok has led many advertisers to explore alternative platforms, positioning Threads as a potential beneficiary of shifting ad budgets.
As Meta continues refining its approach, advertisers will be closely watching how Threads balances user engagement with monetization efforts in the evolving social media ecosystem.
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