Brands can currently set up their Threads accounts and let their brand personality shine through, but paid advertising is not yet an option. Some brands may choose to wait and observe the platform's development before fully engaging.
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GLOThreads, a Twitter competitor launched by Meta, aims to achieve the same scale, efficiency, and advertising success as its stablemates, Facebook and Instagram. While advertising gates won’t open for several months, brands have an opportunity to prepare themselves for the new social media platform. Influencers have already flocked to Threads to establish an early presence and build their following.
According to Mike Proulx, VP and research director at Forrester, brands can currently set up their Threads accounts and let their brand personality shine through, but paid advertising is not yet an option. Some brands may choose to wait and observe the platform’s development before fully engaging.
Though Threads has a challenging road ahead to gain and retain an audience, integrate new features, and eventually introduce advertising, analysts believe that Meta’s expertise in advertising will likely lead to successful monetization. Kelsey Chickering, principal analyst at Forrester, emphasizes that Meta’s core family of apps, including Facebook and Instagram, has proven their advertising prowess and enjoys a significant share of social media budgets.
In the short term, brands can leverage Threads’ creative and visual potential similar to what Instagram users love. The integration with Meta’s single sign-on and the built-in Instagram audience can also help brands extend their reach. Brands are encouraged to experiment and learn from their actions on the platform.
Delaying the introduction of advertising on Threads allows Meta to better understand user behavior and optimize their sales strategy when the time comes. The platform has already garnered significant sign-ups, but average daily users have declined, prompting comparisons with other platforms like Twitter.
Despite this, Meta’s ability to move swiftly and its focus on attracting content creators may play a pivotal role in Threads’ success. Brands with strong Instagram communities and a history of testing and learning in their advertising efforts can use data to drive meaningful adjustments to their media spend once advertising options are available.
Not all advertisers leaving or reducing spending on Twitter are expected to shift to Threads. Other platforms like TikTok, Pinterest, and Snapchat are also viable options. However, Threads’ similarity to Twitter might attract many advertisers, especially if it continues to attract content creators and retain its user base. Morningstar analysts believe that if Meta can achieve this while monetizing the app through advertising, Threads could contribute an estimated $2 billion to $3 billion (1%-2% growth) to Meta’s revenue annually between 2024 and 2027, based on Twitter’s average revenue per user and user growth.
