Meta Announced Ads Are Coming to Threads: What Marketers Need to Know
In a significant move for the advertising world, Meta has announced that paid ads will soon be available on Threads, its text-based app designed to rival Twitter. While Threads initially launched ad-free, the platform has grown rapidly since its debut and now looks poised to offer advertisers a new way to reach audiences. But what does this mean for marketers? Is it worth investing in Threads’ advertising capabilities? Let’s break down the details.
Meta Announced Ads Are Coming to Threads
In a push to monetize Threads, Meta recently told ad executives that the platform will support paid ads starting in the second half of 2024. While the logistics of how these ads will be integrated remain unclear, industry insiders expect the ads to function similarly to existing formats on Facebook and Instagram, including image, video, and carousel ads.
Meta’s decision to introduce ads earlier than anticipated signals its confidence in the app’s growth and the potential for Threads to become a major player in social media advertising. With a target of one billion users, Meta sees advertising as a critical way to generate revenue and support future platform development.
What Will Paid Advertising on Threads Mean for Marketers?
For marketers, the question remains: is it worth investing in paid advertising on Threads? While the platform has shown promising user growth, its current engagement metrics are lower than more established platforms like Twitter. As of the second quarter of 2024, Threads boasted 175 million monthly active users (MAU), but only 21% of users are active daily. Compared to Twitter, which has seen a decline in users, Threads has potential, but the limited user activity raises questions about its advertising value.
Right now, it’s too soon to tell whether ads on Threads will be a worthwhile investment. Marketers should keep an eye on the platform’s development, user engagement, and, more importantly, the data Meta releases about ad performance once the feature is live.
Things to Consider
When deciding whether to allocate a budget to Threads ads, there are a few factors to consider:
- User Engagement: While Threads has grown, its users are not as engaged as Twitter’s. According to data from Sensor Tower, Twitter users open the app an average of 15 days per month, while Threads users only open it seven days per month. Additionally, Twitter users spend 32 minutes per day on the platform, compared to just seven minutes per day on Threads.
- Ad Format and Placement: Meta’s advertising ecosystem—especially its Advantage+ platform—provides a range of ad placement options. It’s likely that Threads ads will be integrated into this system, allowing advertisers to seamlessly run campaigns across Facebook, Instagram, and Threads. This could be a strong selling point for marketers looking for a multichannel approach.
- Audience: Threads is popular with Gen Z and Millennial audiences, making it an attractive option for brands targeting younger demographics. However, with lower daily engagement, the platform may not deliver the same level of immediate ROI as other platforms.
- Timing: Meta needs to strike a balance between introducing ads early enough to monetize the platform and not alienating its user base. A poorly timed ad rollout could result in user frustration, as seen with platforms like BeReal and Clubhouse, which struggled after monetization efforts. Marketers should watch how Threads’ community reacts to the introduction of ads before committing fully.
Twitter vs. Threads User Data
It’s impossible to talk about Threads without comparing it to its biggest competitor: Twitter (now called X). Twitter has faced declining user numbers, particularly in the U.S. and U.K. Data shows a 20% drop in active users in the U.S. over the last 16 months, with the U.K. seeing similar declines. Meanwhile, Threads is growing, with 175 million monthly active users, up from 150 million in the first quarter of 2024.
However, when it comes to daily activity, Twitter is still ahead. Twitter users log in more frequently and spend more time on the app, whereas Threads users check the app only a few times per month. For marketers, this discrepancy in engagement is key when deciding whether to allocate ad spend on Threads or stick with Twitter.
How Can Brands Market on Threads Without Ads?
Although ads aren’t live on Threads yet, brands can still start building an organic presence on the platform. Here’s how:
- Build an Organic Presence: Just like any new platform, starting early is essential. Brands can begin by creating engaging content that resonates with Threads’ primarily younger audience. Focus on posts that spark conversation and build community, as Threads encourages interactive engagement.
- Leverage Influencers: Influencer marketing is a powerful tool, especially on community-driven platforms like Threads. Brands can partner with influencers to create authentic content that speaks directly to their followers. This helps brands build trust and authenticity before the platform becomes saturated with paid ads.
- Integrate with Instagram: Since Threads is directly tied to Instagram, brands can leverage their existing Instagram content on Threads to engage with their followers in a new way. This is especially useful for brands that rely on visual content but want to add more context or conversation around their posts.
- Community Building: Threads’ format is ideal for creating conversations and fostering community. Brands can use this to their advantage by starting discussions around relevant topics, responding to user comments, and encouraging interaction between followers.
- Utilize Early Features: While the platform is still in its early stages, take advantage of its unique features. Threads encourages brands to share text-based narratives, which can complement the visual-first nature of Instagram. Creating content that combines both approaches could help brands stand out on the platform.
What’s Next for Advertising on Threads?
As Meta continues to develop Threads, it’s clear that paid advertising will play a key role in the platform’s future. For marketers, the big question is whether the investment in Threads ads will be worthwhile given its current user engagement. While Threads is showing growth, engagement levels are still lagging behind other platforms.
For now, brands should take a wait-and-see approach. As ads begin to roll out, tracking user sentiment and ad performance will be crucial in determining whether Threads can become a viable advertising platform. In the meantime, focusing on organic growth, community building, and influencer marketing can help brands establish a presence on Threads before the competition ramps up.
At KARMA jack, we’re always on top of the latest developments in digital marketing. Whether you’re considering ads on Threads or looking to strengthen your organic strategy, we’re here to help you stay ahead of the curve. Stay tuned as we continue to explore the future of social media advertising!
