Meta, the parent company of Facebook and Instagram, is set to introduce advertisements on its social media app, Threads, starting in January 2025. This rollout will allow a select group of advertisers to publish ads, marking a significant step in Meta’s strategy to monetize Threads.
According to sources cited by Reuters, Meta plans to allow a small group of advertisers to begin running ads on Threads early next year. This initiative will be led by Instagram’s advertising team, though Meta has indicated that monetization will not be a primary focus in the app’s initial growth phase.
Threads, launched in July 2023 as a competitor to X (formerly Twitter), is entering a new stage of growth with this advertising feature. Despite the move, Meta’s Chief Financial Officer, Susan Li, stated that Threads is not expected to drive significant revenue in 2025, as the company’s priority remains building consumer value. “There are no ads or monetization features currently on Threads, as our priority is to build consumer value first,” she said, adding that Meta will gradually introduce additional features to enhance Threads’ revenue potential over time.
Threads’ advertising plan could provide an advantage over X, which has faced challenges retaining advertisers since Elon Musk’s acquisition. In August 2024, X filed a lawsuit against companies like Mars and CVS Health, accusing them of a coordinated advertising boycott, leading to revenue declines. Advertisers on X have voiced concerns about brand safety, especially given recent shifts in content moderation policies.
Meanwhile, Threads has continued to grow rapidly, with 275 million monthly active users as of early November 2024, according to Adam Mosseri, Head of Threads and Instagram. This user base has seen substantial growth from the 150 million monthly active users reported in April. Meta’s CEO Mark Zuckerberg also noted Threads’ expansion, revealing a 57% rise in active users since July 2024.
As Threads introduces advertising, this move could reshape the competitive landscape in social media advertising.