Threads, Meta’s Twitter-like social media app, continues to show remarkable growth and is making significant strides in the competitive social media landscape.

Since its launch, Threads has piggybacked Instagram to rapidly gain users, achieving an impressive milestone of 150 million monthly active users (MAUs), as reported by Meta in April.

Mark Zuckerberg, April 2024

“Threads is growing well too. They’re now more than 150 million monthly actives and it continues to generally be on the trajectory that I hope to see.

And of course, my daughters would want me to mention that Taylor Swift is now on Threads. That one was a big deal in my house.”

Furthermore, Apptopia, an analytics business, recently reported that Threads is seeing a steady rise in daily active users and is now leading X (Twitter) in the U.S. market.

Business Insider, April 2024

“”Threads DAUs in the US passed X in December 2023 and it has not looked back,” Thomas Grant, Apptopia’s VP of research, said.

It’s currently the third-most-downloaded free app in Apple’s App Store, while X is No. 41. In the Google Play store, Threads is No. 12 among free apps, while X is No. 44.

So far in April, Threads has averaged an estimated 28 million daily active users — those who have opened the app at least once in a 24-hour period. That’s a roughly 55% increase in DAUs from December, when Threads averaged an estimated 18 million users a day.”

Despite this progress, Threads faces challenges in achieving Meta CEO Mark Zuckerberg’s ambitious goal of one billion users. However, the platform has recently been under the spotlight not only for its user growth but also for its potential as a new venue for advertising.

Instagram Threads Could See Ads This Year

According to Digiday, Meta plans to introduce advertising on Threads much sooner than expected, with ad placements possibly starting as early as the second half of this year. This move indicates Meta’s confidence in Threads’ continued growth and its ability to attract a significant audience.

Initially, there were no ads or monetisation features, as Meta emphasised building consumer value. However, U.S. advertising executives are keenly observing these ads’ potential formats and placements. Partnership Ads, similar to those available on Instagram and Facebook, are anticipated to be extended to Threads.

Partnership ads allow advertisers to run ads with creators, brands and other businesses. The advertiser and partner accounts are featured in the ad’s header, and the ads leverage signals from both accounts for improved ranking and incremental performance.

Partnership Ads are beneficial for brands that want to expand their reach without directly engaging with customers themselves, instead relying on the trust and relationship that creators or partner brands have with their followers. This type of advertising is beneficial in promoting products in a way that feels more organic and less intrusive, potentially leading to higher engagement rates and better conversion results.

The tie-in with Partnership Ads seems like a logical first step as Meta looks to build out the creator ecosystem within Threads. Meta recently introduced an incentive for prominent Instagram creators by offering them up to $5,000 to post on Threads.

Threads Ads Will Leverage Meta Ads AI

Meta’s strategy to roll out ads in Threads also reflects a broader tactic of leveraging its existing ad infrastructure. Ads for Threads are likely to be integrated into Meta’s Advantage+ platform, which already manages ad placements across Facebook and Instagram. This integration suggests a seamless inclusion of Threads into Meta’s existing advertising ecosystem, potentially offering new placement options alongside current offerings.

Meta has a proven track record for monetising new features—from the main Feed nearly twenty years ago to Stories and, more recently, Reels—and rarely rushes the ad option.

Digiday, April 2024

“Since our priority is to build consumer value first and foremost, there are no ads or monetization features currently on Threads,” a Meta spokesperson told Digiday. “At this time, we encourage businesses to experiment with Threads as part of their organic social strategy where it makes sense.” 

Launching ads too soon could alienate users currently enjoying an ad-free experience while delaying too long might hinder the platform’s ability to sustain its operations and growth in a tight market. Thus, Meta must carefully balance these considerations to maintain user engagement and satisfaction while scaling its revenue streams.

The platform’s rapid growth and the strategic introduction of ads could significantly influence its position in the competitive social media market, potentially making it a significant player alongside more established platforms. This development marks an important phase in Threads’ evolution, as it aims to grow its user base and become a profitable entity within Meta’s broader ecosystem.