Meta sets sights on advertising for Threads: Report

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.”