Threads turns profitable: Meta’s ad revolution begins

• Meta plans to roll out advertisements on its Threads platform in early 2025, seeking to drive revenue
• The move marks a key step in Meta’s broader strategy to make its latest social media platform profitable

What happened

Meta Platforms announced on Wednesday (November 13) that Facebook plans to introduce ads on its social media app Threads in early 2025. The ads will begin running once they are launched on the platform. The specific ad formats and targeting methods have not been fully disclosed. Meta may use targeted advertising based on users’ interests and interactions. It is similar to its approach on other platforms like Facebook and Instagram.

Threads was launched in July last year as a challenger to X, formerly Twitter, aiming to attract users from the de facto micro-blogging site during its chaotic takeover by billionaire Elon Musk. Last month, Meta CEO Mark Zuckerberg stated that the app has reached 275 million monthly active users. This is a sign of its rapid growth. While Threads has generated significant attention as a text-based platform, it remains in the early stages of monetization. “As our priority is to build consumer value first, there are currently no advertising or monetization features on Threads”, a Meta spokesperson said in an emailed response.

Also read: Meta to introduce ads on Threads in early 2025, the Information reports

Also read: Reports Suggest That Ads are Coming to Threads Early Next Year

What it’s important

Meta’s decision to introduce ads on Threads is a crucial development. This is especially true for small businesses and startups, which are facing the challenge of scaling up and monetizing digital platforms. The key takeaway here is the importance of understanding how larger platforms like Meta balance user experience with monetization. For small companies considering ads on their platforms, Meta’s approach shows how targeted, data-driven ads generate revenue without alienating users. Pinterest has used user data to deliver personalized ads aligned with user interests. This creates a more engaging experience for advertisers while maintaining user satisfaction. Small companies can adopt similar strategies by using their own data. This allows them to develop tailored, non-intrusive ad models that enhance, rather than disrupt, the user experience.

However, the broader industry context also provides a cautionary tale. Twitter (X)’s earlier monetization efforts with subscriptions and ads led to user backlash and trust issues. This highlights the risks of over-commercializing new platforms. Small companies must be cautious when integrating ads. Focusing too much on monetization too soon can alienate users. This makes it harder to build a loyal customer base. The critical lesson for startups is finding the right balance between generating revenue and maintaining a positive user experience. Meta’s move to monetize Threads could be successful, but it also underscores the challenges that every digital platform faces when transitioning from user-focused content to revenue generation. For small companies, the key is to learn from both the successes and failures of these larger platforms and apply those lessons carefully.