Meta Platforms is set to introduce ads on its social media app Threads early next year, according to The Information, which cited three sources familiar with the plans. Launched in July 2023, Threads aims to compete with X (formerly Twitter) amid Elon Musk's takeover. The app reached 275 million monthly active users, Meta CEO Mark Zuckerberg announced last month.
Threads is planning to allow a small number of advertisers to create and publish ads on the app starting in January, according to the report. A team inside Instagram's advertising division is leading the initiative, the report said. The introduction of ads on Threads could potentially attract advertisers seeking alternatives to X, especially amid the ongoing legal disputes and changes under Elon Musk's leadership.
Meanwhile, Meta does not expect Threads to be "a meaningful driver of 2025 revenue," CFO Susan Li said on a post-earnings call in October. She also mentioned that the company plans to introduce more features on the app.
"Since our priority is to build consumer value first and foremost, there are no ads or monetisation features currently on Threads," a Meta spokesperson said in an emailed response.
This development comes at a time when X (formerly Twitter) is facing challenges in retaining advertisers. In August 2024, X filed an antitrust lawsuit against the World Federation of Advertisers and several major companies, including Mars and CVS Health, alleging unlawful coordination to boycott the platform, resulting in significant revenue losses.