You will soon see ads on Threads in US, Japan
What's the story
Meta Platforms has announced plans to start testing advertisements on its social media platform, Threads.
The trial phase will include select brands in the US and Japan, and is aimed at the app's over 300 million monthly active users.
During this initial stage, image ads will be strategically placed in the home feed of Threads.
Ad expansion
Ad integration and AI-driven inventory filters
Before a wider rollout, Meta will closely monitor the ad testing on Threads.
The company has also confirmed that businesses will get the chance to extend their existing Meta ad campaigns to Threads.
An AI-powered inventory filter for ads will also be tested on Threads, giving advertisers control over how sensitive they want the organic content next to their ads to be.
Market response
Analysts weigh in on Meta's ad testing initiative
Jasmine Enberg, a principal analyst at Emarketer, weighed in on Meta's move to bring ads on Threads.
She said this move could pique the interest of advertisers, especially considering Meta's recent changes in content moderation.
Enberg added that brands are looking for alternatives due to instability at TikTok, giving Meta an opportunity to market Threads.
Platform growth
Threads: A brief overview and future expectations
Threads was launched in July 2023 as a competitor to X (formerly Twitter), amid its tumultuous takeover by Elon Musk.
Meta's CFO Susan Li said in an October post-earnings call that the company doesn't expect Threads to meaningfully contribute to its 2025 revenue.
Meanwhile, CEO Mark Zuckerberg has revealed plans to invest up to $65 billion this year in expanding Meta's AI infrastructure.