Meta's Threads is set to launch advertising business on its social media app in early 2025 as reported by The Information. According to the report, the X competitor will only allow a small number of advertisers to buy ads space on the platform in January. Meanwhile, the numbers and names of advertisers that will allowed to make and publish ads on the platform are yet to be stated.
Threads app was one of the social media platforms launched to challenge X, formerly Twitter, during its chaotic takeover by billionaire Elon Musk; when he was in a bid to win the Twitter. Now, the Threads App has hit 275 million monthly active users, Meta CEO Mark Zuckerberg said last month, a sign of its rapid growth.
Instagram head Adam Mosseri confirmed that Meta is "definitely" planning to introduce ads on Threads, explaining that while he understands users' concerns, the platform ultimately needs to generate revenue to cover the costs of its staff and server infrastructure, which enable Threads to remain a free service.
“I get why people have concerns, but at the end of the day we’re a business and Threads needs to make enough money to pay for the people and servers that it takes to run the service and provide it to people for free,” said Mosseri.
A team inside Instagram's advertising division is leading the Threads App Advertising Business, the report said. Another report said advertisers may turn to Threads App if they’re looking for a safer alternative to X, but a new report from The Financial Times says some advertisers are planning to head back to X to earn favor with Elon Musk and President-Elect Donald Trump.
Meta recently reported $39.8 billion in advertising revenue for the last quarter, making up 97% of its total income, though it doesn’t expect Threads, its Twitter-like platform, to contribute meaningfully to revenue until at least 2025.
While Meta hasn't confirmed ad placement details for Threads, "sponsored" posts might be on the horizon, as noted by a developer’s findings. Meta spokesperson Matthew Tye emphasized that the platform currently focuses on user experience rather than monetization, declining to outline future ad strategies.
Meanwhile, Threads may attract advertisers looking for alternatives to Elon Musk's X, which has faced ad revenue declines and advertiser backlash over content moderation concerns since Musk's takeover in 2022.
