Meta is testing ads on its Threads platform, marking the first step towards monetizing the Twitter competitor. The test will involve a limited number of US and Japanese users and businesses. Meta aims to make ads as engaging as organic content and plans to provide brand safety tools for advertisers.
Meta will start testing advertisements on its Threads microblogging platform with a limited number of companies in the United States and Japan, according to a blog post published on Friday. This marks Meta's initial attempt to generate revenue from Threads , which was launched in 2023 as a competitor to X, formerly known as Twitter, acquired by Elon Musk in 2022.
Some investors have speculated that Threads could potentially generate revenue comparable to Twitter's pre-acquisition figures, which reached $5 billion annually in 2021. The experiment will involve a small group of Threads users encountering ads featuring large images within their feeds. These test advertisements will resemble sponsored content commonly seen on Facebook and Instagram, as described in the blog post. Participating businesses will also have access to a brand-safety tool utilized in Meta's Facebook, Instagram, and Reels products. This tool is designed to prevent brands' sponsored content from appearing alongside offensive material. Meta's existing monetization policies will apply to Threads, ensuring that content violating Community Standards is ineligible for ad placement. Threads boasts over 300 million monthly users, with three out of four users following at least one business on their feeds, according to the company's blog post. Since its launch in 2023, Threads has garnered attention from investors who believe it could eventually become a significant revenue source for Meta, akin to Twitter's pre-Musk era. However, analysts expressed in October that while Meta is content with Threads' growth trajectory, they do not anticipate the platform to become a major revenue generator in the near future. Specifically regarding monetization, analysts do not foresee Threads contributing meaningfully to Meta's 2025 revenue. Meta plans to disclose further details about third-party advertising verification tools and support for additional languages in the coming months. The introduction of Threads ads, shortly after Meta's content moderation overhaul, is likely to raise questions among advertisers. However, the ongoing turmoil at TikTok is prompting brands to explore alternative platforms, and Meta is poised to capitalize on this opportunity by promoting Threads as a viable option
METAVERSE SOCIAL MEDIA THREADS ADVERTISING TWITTER
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