Meta Tests Ads on Threads Amid Rising User Engagement
Meta begins testing ads on Threads, introducing AI-powered brand safety tools as the platform surpasses 300M users. Here’s what it means for advertisers.
Meta Platforms (NASDAQ: META) is rolling out its first ad trials on Threads, its social media platform, as it looks to capitalize on the app’s growing user base. The move, which starts with select brands in the U.S. and Japan, signals Meta’s intent to monetize the platform just months after its launch.
Meta Introduces Ads to Threads’ Growing Audience
The early-stage testing, which began on Friday, will feature image ads placed within the Threads home feed for a limited percentage of users. Meta announced in a blog post that the company will closely analyze the performance and user reception before scaling up the initiative. Brands already running ad campaigns on Meta’s ecosystem—including Facebook and Instagram—will be able to extend their ads to Threads seamlessly.
As Threads surpasses 300 million monthly active users, the company is strategically positioning the platform as a viable alternative for advertisers looking to diversify beyond X (formerly Twitter). The introduction of ad placements aligns with Meta’s broader revenue-generating strategy, especially as the company aims to maximize its AI-driven ad technologies.
AI-Powered Ad Filtering for Brand Safety
In addition to launching ads, Meta is testing an AI-driven inventory filter to allow advertisers to manage the types of content their ads appear next to. This move is particularly relevant given Meta’s recent adjustments to its content moderation policies, including the discontinuation of its U.S. fact-checking program on Facebook, Instagram, and Threads.
The AI-powered tool will offer brands greater control over content sensitivity, ensuring that advertisements align with their corporate values and brand image. This feature reflects the increasing demand for brand safety measures in digital advertising, particularly as businesses reassess their media strategies amid concerns over content placement.
Why Advertisers Are Looking to Threads
The timing of Threads’ ad rollout coincides with growing uncertainty around TikTok and ongoing concerns about ad performance on X. Analysts predict that Meta is leveraging this moment to position Threads as a more stable and reliable advertising platform.
Jasmine Enberg, a principal analyst at eMarketer, noted that the launch of Threads ads comes just weeks after Meta revamped its content moderation policies. She suggests that while this could raise concerns among some advertisers, the volatility surrounding TikTok and other platforms is driving brands to explore alternative ad spaces.
“Meta isn’t going to miss an opportunity to push Threads into the mix, especially as advertisers seek dependable platforms amid industry fluctuations,” Enberg said.
Threads: A Long-Term Investment, Not a Revenue Driver Yet
Despite the promising user growth, Meta remains measured in its revenue expectations from Threads. During an October earnings call, Meta’s Chief Financial Officer Susan Li stated that Threads is not projected to be a significant revenue driver in 2025. Instead, the company appears focused on establishing the platform’s user engagement before heavily monetizing it.
Meta’s broader business strategy is underscored by its aggressive investment in artificial intelligence. CEO Mark Zuckerberg recently announced that Meta plans to allocate up to $65 billion this year to expand its AI infrastructure. This move is seen as a critical step in strengthening Meta’s position against rivals like OpenAI and Google in the AI race.
What This Means for the Future of Threads
Threads debuted in July 2023 as a competitor to X, capitalizing on the disruptions following Elon Musk’s acquisition of Twitter. While the app quickly gained traction, sustaining engagement and finding a clear monetization path remain key challenges.
With ad placements now entering the mix, Meta is signaling that Threads is moving beyond its experimental phase. The company’s approach—prioritizing user experience while gradually integrating monetization—could help position Threads as a long-term player in the social media space.
As advertisers explore their options, the success of this initial ad rollout will likely determine how aggressively Meta expands its ad strategy on Threads. If early tests prove successful, the platform could soon become a staple in Meta’s advertising ecosystem.
Meta’s foray into advertising on Threads marks a pivotal moment in the platform’s evolution. With AI-driven ad filters and a strategic focus on brand safety, the company is working to attract advertisers while maintaining user engagement. Whether Threads can emerge as a dominant force in the social media advertising landscape remains to be seen, but Meta’s calculated approach suggests that this is just the beginning of its monetization journey.
Source: (Reuters)
(Disclaimer: This article is based on publicly available information and is subject to change. Readers are encouraged to refer to official sources for the latest updates.)
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