As the Threads app becomes more and more popular, Meta Platforms has officially announced plans to introduce advertisement on the social media platform in early 2025. Early next month advertising will begin on Threads for a select group of advertisers. This is another step by Meta’s ads division to monetize the app and create some space as a potential Twitter replacement.
Rapid Growth Since Launch
Threads, Meta’s answer to the microblogging platform X, which released in July of the previous year to catch users in the wake of the disruption caused by Elon Musk’s acquisition of X. Since, Threads has grown dramatically and now has 275M active users, and Meta CEO Mark Zuckerberg even speculated that it would become Meta’s next billion-user platform.
The quick user adoption represents the thorough need for a solid and organized social media platform, which puts Threads in a unique competitive situation as it lures users who are sometimes inclined to use X.
Threads Ads: A Measured Rollout
In January, Meta will start testing ads on Threads but left unclear what revenue it can expect from the feature. Meta’s CFO Susan Li has stated in an October earnings call that Threads isn’t expected to lead to significant revenue for 2025, no matter how the app is growing.
Li says the impetus is still on improving user experience and generating consumer value, rather than immediate revenue. Meta spokespeople have insisted there are no monetization features on Threads today and they will use the consumer as their guide.
The actual testing on the platform itself is not live, which is handled by the team having the backend preparations for ads within Instagram’s advertising unit. Threads’ ad functionality is a ‘multi-year effort,’ says Meta, which is preparing the infrastructure for ads for Threads and has hinted that it will roll out slowly to avoid glitches.
Competition with X and Rising User Momentum
Threads is quickly becoming the ‘X’ of the Strava generation, with new data indicating that Threads continues to accumulate a giant amount of new users each day. The momentum of growth will have led Meta to market its plan for when to introduce ads, as more community members move off of X to Threads, increasing the latter’s prominence.
Advertisers also are showing hesitance to invest heavily in X, fearful of ads putting next to inappropriate content as Musk faces legal scrutiny in its own right with X suing a global ad alliance and major companies such as Mars and CVS Health. Advertisers wanting a safer platform can choose to advertise on threads, a similar environment with different community guidelines.
Threads exceeded 200 million users in August, a milestone that Zuckerberg said was a big step toward making Threads a billion-user platform. Threads growth and revenue opportunities are underlined by this achievement, but Meta will approach monetization on Threads cautiously and with a gradual approach first.
Incremental Testing Before Full Launch
The ad development of Threads is not an urgent or even exploratory process, but a curious one. Meta’s spokesperson clarified that ‘backend elements are being configured’ and that ‘there is no immediate timeline for monetization.’
The rollout will be measured, and this suggests that while the platform’s ad framework is evolving, the first iteration will be focused on creating an experience that feels cohesive with Meta’s existing platforms, such as Facebook and Instagram.
Zuckerberg’s approach to Threads’ monetization mirrors Meta’s typical strategy: gradual scaling of new products using data to ensure that the user experience across the board is seamless before maximizing profitability. This rigorous approach is visible across Meta’s portfolio and inherent in Meta’s commitment to building sustainable, consumer-first solutions.
Along with Bluesky, Threads is not alone in this space, and both are becoming an X alternative. Bluesky recently hit one million users in a week but still sits behind Threads in terms of overall user base. It runs both platforms ad-free now, which allows them to experiment with a possible subscription-based or ad-support revenue stream.
End Note
Meta’s current focus is to build user engagement and improve platform functionality, and eventually, threads could become a valuable platform for advertisers. Zuckerberg has pointed out, however, that Threads is a long-term project that will unfold with ad monetization as the platform grows.
Meta’s cautious approach is a sign of readiness, given users are increasingly choosing ad-free spaces, while the company gears up to meet advertiser demand, as reported by The Information. Ads that select will begin to appear in January on Threads, with a wider rollout dependent on further growth and new launching points milestones such as 500 million users or even one billion before monetization kicks into gear.
