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X-rival Threads to start testing ads as Meta eyes new revenue stream
As competition with X intensifies, Meta tests monetization strategies on its microblogging platform, with ads targeting U.S. and Japanese users.
Threads, launched in July 2023, positioned itself as a competitor to X.
Meta announced on Friday that it will begin testing advertisements on its Threads microblogging platform, targeting users in the United States and Japan. This marks the company’s first effort to monetize the service, which was launched in July 2023 as a direct competitor to X (formerly Twitter). Elon Musk’s $44 billion acquisition of Twitter in late 2022 set the stage for a growing rivalry between the two platforms.
The company emphasized that it would closely monitor the experiment before deciding to scale it. Meta's goal is to ensure that ads on Threads are as engaging as organic content, the Mark Zuckerberg-led firm said.
The test will involve a limited group of Threads users, who will see advertisements featuring large images within their feeds. These ads are expected to resemble sponsored content that users encounter on Meta’s other platforms, including Facebook and Instagram. Participating businesses will also have access to a brand-safety tool, designed to prevent ads from appearing alongside inappropriate content—much like the safeguards currently in place for Meta’s other services.
Meta reiterated that its existing monetization policies would apply to Threads, ensuring that any content that violates its Community Standards would not be eligible for advertising adjacency. Threads currently boasts over 300 million monthly users, with approximately 75% of them following at least one business on the platform.
The decision to launch advertisements on Threads comes amid broader changes at Meta. Earlier this month, the company announced it would relax its content moderation policies and dismantle its third-party fact-checking program, a move designed to foster “free expression” on the platform. The timing is notable, as it coincides with a shifting social media landscape, following regulatory pressures on TikTok in the US. In April 2024, a law signed by former US President Joe Biden forced Apple and Google to stop distributing the app in the U.S., prompting potential new opportunities for Meta.
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The leaders highlighted how AI is emerging as a critical enabler in this shift from marketing’s traditional focus on new customers to a more sustainable model of driving growth from existing accounts.
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