Meta reveals how it plans to make money on Threads, its X competitor with 300 million users

Meta's Advertising Strategy on Threads - Meta is beginning to test ads on Threads, marking its first attempt to generate revenue from the platform since its launch in 2023 [1] - The initial test will roll out to a small group of users in the US and Japan, with ads appearing as image posts within users' feeds [1] - Advertisers can extend their existing Meta campaigns to Threads by simply checking a box [1] User Base and Advertiser Engagement - Threads has 300 million active users each month, with three out of four users following at least one business account [2] - Meta aims to make ads on Threads as interesting as organic content, closely monitoring the initial test before scaling it more broadly [2] Strategic Timing and Industry Context - The ad rollout on Threads is strategically timed amid upheaval in the social media landscape, including potential US restrictions on TikTok and advertiser wariness around X under Elon Musk's ownership [3] - Meta executives have reassured advertisers about the company's decision to relax content moderation policies and end its third-party fact-checking program [3] Brand Safety and Advertiser Tools - Meta is implementing brand safety measures, including AI-powered tools that allow advertisers to control what content their ads appear next to [5] - The company plans to expand third-party advertising verification tools and language support in the coming months [5] Revenue Expectations and Competitive Differentiation - Meta's CFO, Susan Li, stated that Threads is not expected to be a meaningful driver of 2025 revenue, despite being pleased with its growth [7] - Making great ads is seen as a key differentiator for Threads to compete with X, especially given the user base growth from those fleeing X after the Musk takeover [7][8] Meta's Ecosystem Advantage - Meta's ecosystem allows advertisers to programmatically place ads across its platforms based on real-time efficiency, a significant advantage over standalone platforms [6] - This approach was previously used when Meta rolled out Reels, helping advertisers ease into ad placements [6]