Meta has confirmed that advertisements will be introduced to its Threads platform, a move that has generated lukewarm reactions. Advertisers are interested, as they are with any new app, but there is hesitation due to uncertainty about the platform’s value and audience. Colleen Fielder from Basis Technologies noted that advertisers are waiting to see how Threads evolves organically before committing.
A significant challenge for advertisers is the unclear audience demographic on Threads. Kevin Goodwin from New Engen highlighted that brands are unsure who uses Threads and whether there’s an engaged audience.
Despite Threads’ rapid growth to 175 million monthly active users within a year, it still trails behind X (formerly Twitter), which has 570 million MAUs, indicating a potentially different user base that could appeal to new advertisers.
Metrics comparing user engagement on Threads and X reveal a stark contrast. X users interact with the app more frequently and for longer durations than Threads users. This difference in user engagement is a critical factor for advertisers who seek platforms where their investments yield significant returns.
Eb Adeyeri from Jellyfish pointed out that advertisers are content with existing platforms unless a new one offers substantial advantages.
Meta’s Threads to Introduce Ads Amid Advertiser Hesitation and User Engagement Concerns
Advertisers are particularly interested in the presence of major creators and publishers. Kevin Goodwin mentioned that many influential users on X, especially in sports and business, are inactive on Threads. Adam Mosseri of Instagram, which oversees Threads, expressed a desire to enhance engagement in key verticals like sports and European football to attract these communities.
As Threads prepares to introduce ads, it must consider the upcoming election year and ensure robust safety controls. Carly Carson from PMG emphasized the importance of contextual keyword-based controls to manage real-time conversations and maintain advertiser comfort.
Advertisers like Haley Feazell from MindgruveMacarta plan to monitor Threads’ performance without shifting budgets from other platforms unless there’s a significant improvement. This sentiment is echoed by Carson, who anticipates a cautious approach until there’s a better understanding of user engagement with Threads’ ads.
