Meta prepares to launch ads on Threads in early 2025

In a strategic move, Meta is preparing to introduce advertisements on its social media platform Threads, expected to begin in January 2025. This decision follows a report from The Information, which indicates that a limited number of advertisers will have the opportunity to create and publish ads on the platform during its initial rollout. Instagram head Adam Mosseri has publicly acknowledged the necessity of introducing ads to ensure that Threads remains financially viable, stating the need for the platform to generate enough revenue to cover operational costs. Despite the upcoming introduction of ads, Meta's CFO Susan Li has clarified that Threads is not anticipated to significantly contribute to the company’s revenue in 2025. Currently, Meta's main source of income remains its advertising business, which generated nearly $40 billion in revenue during the last quarter, accounting for 97% of the company's total earnings. As advertisers reevaluate their social media strategies, some are considering Threads as a potential alternative to X, although existing trends also indicate a return to X for aligning with major figures in the political landscape. The specifics concerning how these advertisements will be displayed on Threads remain undisclosed. However, early indications suggest they could take the form of “sponsored” posts, a feature that has been observed in early development stages. A Meta spokesperson has acknowledged that there are currently no monetization features in place on Threads, emphasizing the platform's goal of prioritizing consumer value before implementing ads. Nevertheless, the move toward advertisements is seen as a necessary step for Meta's business model. As the launch date approaches, it is clear that advertising on Threads signifies Meta's commitment to ensuring the platform’s sustainability. The advertisement rollout aligns with the overall trend of social media spaces shifting toward monetization, reflecting the ongoing battle for market share and advertiser loyalty amid fierce competition in the tech industry.