San Francisco: Threads, Meta Platform's new social media app, has caught the attention of advertisers as a potential alternative to Twitter.
Launched on July 5, Threads quickly amassed 100 million users, marking a significant challenge to Twitter's dominance in the microblogging space. Though the app experienced a drop in downloads and engagement shortly after its launch, analysts are optimistic about its advertising potential if it manages to retain its user base.
Several forecasts predict substantial ad spending on Threads, with estimates ranging from $2 billion to $8 billion in annual ad revenue.
Ad industry executives and analysts believe that once Threads introduces advertising, some brands may shift their marketing budgets from Twitter to this new platform. Meta's reputation for successfully running Instagram and Facebook adds to advertisers' confidence in Threads' potential for growth.
Taylor Michelle Gerard from Blue Hour Studios said that some clients are already considering integrating Threads into their marketing campaigns alongside TikTok or Instagram posts, reported Reuters.
Threads is still in its early days, and it has a long way to go to reach Twitter's level of reach, which had nearly 240 million monetisable daily active users as of July 2022. Meta CEO Mark Zuckerberg has emphasised the company's focus on reaching 1 billion users before considering monetisation.
Some advertisers have grown wary of Twitter due to concerns about discourse and policy changes under Elon Musk's ownership. At this time, Threads offers a more predictable and less contentious alternative. The app's novelty has attracted brands that are eager to experiment with its advertising potential and engage with a fresh audience.
However, Threads currently lack certain features essential for advertisers, such as direct messaging, hashtags, and keyword searches. Nonetheless, brands are intrigued by Threads' potential and are optimistic about its future growth.
Advertisers are keeping a close eye on the platform, hoping it will become a significant player in the social media advertising landscape.