Meta sets sights on advertising for Threads: Report

Since its mid-2023 launch, Threads has experienced rapid growth, attracting over 175 million monthly active users in its first year.

By  Storyboard18Nov 14, 2024 10:18 AM
Meta sets sights on advertising for Threads: Report
The timing of the news coincided with Meta’s announcement that it will reduce the price of ad-free subscriptions for EU users of Instagram and Facebook.

Meta, the parent company of Instagram, is reportedly planning to introduce advertising to its text-based social media app, Threads, early next year.

According to Seeking Alpha, which referenced information from a paywalled article by The Information, the initiative will be led by Instagram's ad unit. A small group of advertisers is expected to gain access to the platform in January, marking Threads' first step toward monetization since its July 2023 launch.

Launched in mid-2023, Threads has quickly grown, with the platform amassing over 174 million monthly active users within its inaugural year. The app was developed by the Instagram team with a vision to "take what Instagram does best and expand that to text, creating a positive and creative space to express your ideas," according to a Meta press release at launch.

Meta's plans for Threads ads come amid broader monetization efforts. The company's latest earnings report, released Oct. 30, showed a notable rise in ad revenue: Meta's total advertising revenue for the third quarter reached $39.9 billion, up from $33.6 billion a year prior. Although ad impressions increased by 7% year-over-year, this growth rate has slowed from a peal of 21% a year ago.

The timing of the news coincided with Meta’s announcement that it will reduce the price of ad-free subscriptions for EU users of Instagram and Facebook. This decision allows EU users the flexibility to choose between ad-free access or a more personalized ad experience, as per Meta’s Nov. 12 blog post.

Meta launched ad-free subscription options last year in response to EU regulatory demands, with the company remarking that it strives to meet requirements “that go beyond what is written in the law.”

First Published on Nov 14, 2024 10:18 AM

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