By Krystal Scanlon • July 18, 2024 •
Ivy Liu
Meta has publicly affirmed what it previously communicated to select advertisers: ads are on the way for Threads. The reception has been tepid, to say the least.
Sure there’s interest in the platform, just as there is for any new app in the market — advertisers are always looking to either fill the role of first-adopters, or find new places to reach their target audiences. But that interest is tempered by the fact that advertisers still don’t really know why they should be on the app in the first place.
As Colleen Fielder, group vp of social and partner of marketing solutions at Basis Technologies pointed out, “I think there’s definitely interest in Threads, but in general many advertisers are still waiting in the wings to see how the platform develops, even just organically.”
That’s because a big barrier for advertisers to really take the initial plunge with Threads is down to the fact that they aren’t clear on who the audience is.
“Brands just don’t see the audience there yet — some of this is not understanding who that Threads audience really is, and some of this is lack of faith that an engaged audience is really there,” said Kevin Goodwin, vp of digital marketing at New Engen.
During its first five days, Threads reached 100 million users. Three hundred and sixty one days later, Zuckerberg posted on the app that “Threads now has more than 175 million monthly actives [users]” to celebrate its first anniversary.
But compared to X (formerly Twitter), its most recognized competitor, the platform falls short, as X most recently recorded 570 million MAUs (monthly active users).
Still, if the MAU data is true, this could mean that Threads has an entirely new audience from what existed on X. Meaning, it would make the platform a fairly compelling value proposition to a whole new set of advertisers where X doesn’t make sense.
Perhaps it does, but advertisers will need clearer metrics on how much time Threads users spend on the app compared to X. Currently, there’s a noticeable gap between the two platforms. X users opened the X app an average of 15 days per month during the second quarter of 2024, more than double (seven days per month) that of Threads users on Meta’s text-based app through the same time period, according to data from Sensor Tower. Furthermore, X users spent on average 32 minutes per day and registered 14 sessions per day on the app during Q2, while Threads users on average used Meta’s text-based app for seven minutes per day during three sessions per day.
Yet, what advertisers are really catching onto these days is the hunt for better bang for their buck, even with tighter budgets. Threads could be in the spotlight, but it’s up against a sea of other choices already out there.
“Social advertisers already have plenty of platforms to invest in, and unless a new platform offers substantial benefits for minimal effort, many are satisfied with the results from existing platforms,” said Eb Adeyeri, vp paid social and partnerships at Jellyfish.
One thing that could get advertisers to sit up and take notice would be if some of the biggest creators and publishers, particularly those on X, were active on Threads.
“Many of the power users on X are there for sports and business,” explained Goodwin. “When I look at some of the biggest names in these categories, they either haven’t posted since 2023 when Threads first rolled out or they post very infrequently.”
These thoughts aren’t lost on Meta either, as Instagram head Adam Mosseri, who oversees Threads, pointed out when being interviewed by Platformer’s Casey Newton. “I’d like to see us continue to make progress and go even deeper on key verticals,” he said. “I would like to gain on NBA Twitter [X]. I would like to see more in the world of European football. I’d like us to get those communities to be more vibrant over time.”
Nevertheless, if (and when) ads do launch this year, what can’t be forgotten is that it’s an election year. Which is why Threads would need to ensure it’s got the right safety controls in place.
“I would hope to see Threads build in some contextual keyword-based adjacency controls during those moments,” said Carly Carson, head of integrated media at PMG. “As real-time conversations — especially during an election year — can vary drastically in terms of sentiment, it will be important for Threads to launch [ads] with the right safety control options so advertisers will be comfortable with spending budget there.”
If and when advertising on Threads does take off there’s a chance it won’t be at the expense of another platform.
Haley Feazell, group media director at MindgruveMacarta pointed out that her team will likely maintain their existing Meta budgets and monitor performance. However, she did note that they probably wouldn’t pull spend from another platform to dedicate to Threads, unless they saw a “significant improvement” in overall Meta performance. Though she didn’t specify figures.
It’s similar to the perspective held by Carson. “If Threads becomes a placement within the overall Meta mix, I don’t foresee it being used as a way to shift dollars from other platforms until there is a clearer understanding of how users engage with Threads’ content and ads,” she said.
Meta did not respond to Digiday’s request for comment.
https://digiday.com/?p=550238
