Meta’s Threads Considers Ads as Rivalry With X Approaches First Anniversary
The upstart social media service has grown to 175 million monthly users with “less angry” feed
Meta Platforms Inc.’s Threads launched a year ago as Mark Zuckerberg’s bid to capitalize on the struggles of Elon Musk’s X, the social network formerly known as Twitter. Since then, the long-running feud between two of the world’s richest men has morphed into a real business rivalry — one that’s poised to accelerate as Threads gets ready to start selling ads in its feed.
In July 2023, as Twitter users panicked over Musk’s product changes at X, Meta rushed Threads to market in a surprisingly direct assault on its longtime competitor. The service, which looks almost identical to X with likes, followers and a feed of posts based on user interactions, now has more than 175 million monthly users, up from 150 million three months ago.
That’s still smaller than X, but quickly gaining ground and significantly larger than other services like BlueSky and Mastodon, which were also introduced in the wake of Musk’s Twitter purchase. Threads has launched a slew of notable features, too, and has attracted some of the celebrities, journalists and politicians who once helped distinguish Twitter as a social media hub for breaking news.
If Instagram boss Adam Mosseri has his way, Threads may soon compete with X for advertising dollars as well. X’s ad revenue was already down an estimated 45% in 2023 from two years prior after advertisers pulled back, spooked by Musk’s diminished content moderation and the billionaire’s own unpredictable antics. Threads ads would offer an alternative place for businesses to spend their marketing budgets, especially for those that are already familiar with Meta’s successful suite of ad products on Instagram and Facebook.
“I would love to do it sooner rather than later,” said Mosseri, who also oversees Threads, in an interview last month. “It’s just really a question of opportunity cost. Is that the best way to drive business versus making Instagram ads a little bit better on any given month? But it’ll happen, and hopefully sooner rather than later.”