Meta Plans to Introduce Ads on Threads by Early 2024

Meta's Plans for Advertising on Threads by 2025

Meta is reportedly gearing up to introduce advertising on its Threads platform as early as next year, according to insights from The Information. This move aligns with prior reports regarding Threads' advertising rollout in July, as stated by Instagram head Adam Mosseri.

What to Expect from Ads on Threads

Beginning in January, Threads may allow a select group of advertisers to create and publish ads, paving the way for monetization. Mosseri emphasized the necessity of generating revenue to sustain service operations, stating, "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."

Financial Overview of Meta

In its recent earnings report, Meta revealed a staggering $39.8 billion in advertising revenue over the preceding three months, which constituted an impressive 97% of the company's total revenue. Despite this, CFO Susan Li has indicated that Threads is not expected to significantly contribute to revenue until 2025.

The Format of Ads on Threads

While the exact format of ads on Threads remains unclear, indications suggest that they could manifest as "sponsored" posts, a feature noted by reverse engineer Alessandro Paluzzi during development.

Current Status of Ads on Threads

A Meta spokesperson, Matthew Tye, confirmed that Threads currently prioritizes consumer value, meaning that there are no ads or monetization strategies implemented at this stage. He refrained from discussing Meta's future plans regarding advertising.

Advertisers' Shifting Strategies

As advertisers contemplate their options, Threads might emerge as a preferable alternative for those seeking a less controversial platform compared to X (formerly Twitter). However, recent reports suggest some advertisers are returning to X in hopes of gaining favor with influential figures like Elon Musk and President-Elect Donald Trump. In contrast, Jay Graber, CEO of Bluesky, vowed to maintain the integrity of her platform by avoiding ads.

Conclusion

The arrival of advertising on Threads signals a pivotal shift in Meta's monetization strategy, highlighting the ongoing battle for advertiser attention in the evolving social media landscape.

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