Meta's Threads: Early Ad Potential vs. Twitter, Analysts
In the world of social media, a new contender has emerged, and its name is Threads. Launched by Meta Platforms on July 5, Threads quickly gained traction, becoming the fastest-growing platform to hit 100 million users. This sudden rise has caught the attention of advertisers, who see potential in this new platform as a lucrative marketing avenue.
Analysts believe that Threads could eventually compete with Twitter for advertising budgets, thanks to its less contentious and more predictable nature compared to Elon Musk's platform. However, it's still early days for Threads, and some limitations hold back its full potential. For instance, the platform currently lacks direct messaging, hashtags, and keyword searches, which restricts its appeal to advertisers and hampers real-time event coverage, a feature that users frequently enjoy on Twitter.
Despite its initial success, Threads saw a dip in downloads and engagement following its initial buzz. While it's not yet open to ads, industry experts speculate that if Threads manages to retain its user base, it could generate a significant amount of ad revenue, potentially matching Twitter's earnings in 2021.
Various analysts have weighed in on Threads' potential impact on Meta's revenue. Some believe that Threads could add between $2 billion and $3 billion annually to Meta's earnings between 2024 and 2027. Others are even more optimistic, estimating that Threads could bring in $8 billion in annual revenue by 2025, though this would still be a small portion of Meta's overall projected revenue for that year.
Advertisers are closely monitoring Threads' progress, hoping it will flourish under Meta's experienced guidance, given their successful track record with Instagram and Facebook. Many brands are already considering incorporating Threads into their marketing campaigns, alongside TikTok or Instagram posts, in collaboration with influencers.
However, it's worth noting that Twitter has experienced some challenges in recent times, with some advertisers expressing concerns over the tone of discourse and abrupt policy changes since Elon Musk's acquisition. This has led some advertisers to explore other platforms like Threads as a potentially more stable and advertiser-friendly alternative.
While Threads shows great promise, it still has a long way to go before reaching Twitter's level of user reach. Twitter had nearly 240 million monetizable daily active users as of July last year, whereas Meta's CEO, Mark Zuckerberg, has stated that they will only consider monetizing Threads once it reaches 1 billion users.
The team behind Threads is aware of its limitations and plans to focus on improving the platform's basic features and user retention throughout the year. Meanwhile, Meta has been actively investing in AI technology to enhance its advertising capabilities and drive more traffic to Facebook and Instagram.
In conclusion, Threads is indeed making waves in the social media world, offering brands a fresh and engaging platform for experimentation. While it may not yet be a direct competitor to Twitter, its potential for growth and appeal to advertisers have garnered attention. Only time will tell how Threads evolves and if it can truly challenge the dominance of the microblogging giant, Twitter.
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