Introduction

Imagine launching a new social media platform with the expectation of gaining massive advertiser interest, only to face lukewarm reception. This is the current reality for Meta's Threads. While the idea of integrating advertising into Threads seems promising, the reality has proven more complex. In this blog post, we will explore why advertisers are hesitant about investing in Threads, delve into the potential of the platform, and what it needs to do to attract a committed advertiser base.

The Current Landscape

Meta's Threads, a text-based app closely associated with Instagram, launched with considerable fanfare. Within five days of its release, Threads attracted 100 million users. Fast forward a year, and the platform now boasts over 175 million monthly active users (MAUs). Despite this impressive growth, Threads lags behind its prime competitor, X (formerly Twitter), which has 570 million MAUs.

These user statistics present a paradox. While Threads has managed to garner a significant user base, the depth of user engagement remains questionable. Data from Sensor Tower reveals that Threads users engage with the app far less frequently than X users. For instance, during the second quarter of 2024, X users opened the app on average 15 days a month, compared to seven days for Threads users. Furthermore, X users spent about 32 minutes per day on the app, significantly longer than Threads users, who averaged seven minutes per day.

Advertiser Hesitation: Reasons and Insights

A Lack of Clarity on Audience

One of the primary hurdles for advertisers is an academic yet critical one: understanding the audience. Despite the rapid uptake, the nature and behavior of Threads' user base remain ambiguous. Without a clear demographic profile and user engagement metrics, advertisers are cautious.

Kevin Goodwin, VP of Digital Marketing at New Engen, encapsulated this sentiment by pointing out that brands are unsure who the Threads audience comprises and whether they form an engaged community. This uncertainty makes it difficult for advertisers to formulate effective marketing strategies targeted at Threads' users.

Comparison with Existing Platforms

Threads is not entering an empty playground; social advertisers already have a myriad of established platforms that deliver consistent results. According to Eb Adeyeri, VP of Paid Social and Partnerships at Jellyfish, many advertisers see little reason to shift their budgets to Threads unless the platform offers considerable benefits with minimal effort. Essentially, Threads must demonstrate that it can deliver something unique or substantially more efficient to lure advertisers away from reliable platforms like X, Instagram, or Facebook.

Engagement Metrics and Time Spent

Advertisers crave data. While user volume is essential, engagement metrics like session frequency and duration are equally important. For example, X users average 14 sessions per day and spend 32 minutes daily on the platform. In contrast, Threads users average three sessions per day and spend seven minutes.

These stark differences underscore why advertisers are reluctant. Engagement metrics are a proxy for user interest and attentiveness, which directly impact the effectiveness of ads. Without robust engagement, the ROI for ad spend on Threads remains doubtful.

The Promise and Unique Value Proposition of Threads

Despite its challenges, Threads presents some intriguing opportunities for advertisers. First, the platform could potentially host an entirely new and untapped audience. If Threads represents users who do not frequent X, it offers an exciting prospect for brands looking for a fresh consumer base.

Adam Mosseri, head of Instagram and overseer of Threads, highlighted the potential for growth in niche communities. His vision involves integrating vibrant communities like the NBA Twitter and European football fans more deeply into Threads. By attracting these passionate, engaged user groups, Threads could enhance its appeal to advertisers who want to reach a highly targeted audience.

The Road Ahead: What Threads Needs to Do

Improved Metrics and Transparency

For Threads to become a viable advertising platform, it must provide granular metrics about its user engagement. Advertisers need data on how users interact with the platform, the content types they engage with, and the time they spend. Transparent, reliable metrics would go a long way in building advertiser confidence.

Attracting Power Users and Influencers

One crucial element could be attracting influential creators and power users, particularly those already prominent on X. Figures from sports, business, and entertainment could bring their massive followings to Threads, injecting vibrancy and relevance into the platform. This influx would not only boost user engagement but also serve as a magnet for advertisers.

Contextual and Safety Controls

Another crucial aspect, especially in an election year, is safety and contextual controls. Advertisers want assurance that their brands won't be caught in controversial or negative conversations. Carly Carson, Head of Integrated Media at PMG, emphasized the importance of contextual keyword-based adjacency controls to ensure that brands feel safe allocating their budgets to Threads.

Strategic Allocation and Long-Term Monitoring

Many advertisers may take a wait-and-see approach with Threads. As Haley Feazell from MindgruveMacarta noted, teams are likely to monitor Threads' performance closely before reallocating budgets from other platforms. Threads might initially receive ad spend from Meta’s broader budget rather than siphoning funds from other established platforms.

Conclusion

Meta's Threads stands at a crossroads. To transform curiosity into committed investment, Threads must address fundamental advertiser concerns, enhance engagement metrics, and attract influential users. While it holds promise, Threads needs to carve out a unique and compelling space in a crowded social media landscape. Only through transparency, targeted growth, and robust safety measures will Threads be able to shift from a burgeoning platform to an advertising powerhouse.

FAQ

Why are advertisers hesitant about investing in Threads?

Advertisers find it challenging to invest due to a lack of clear user engagement metrics and a vague understanding of Threads’ audience.

What can Threads do to attract more advertisers?

Threads needs to offer transparent metrics, attract influential power users, and provide robust contextual and safety controls.

How does Threads compare to its competitor X in terms of user engagement?

Threads lags behind X significantly. While X users average 14 sessions per day and spend 32 minutes on the app, Threads users engage in three sessions and spend an average of seven minutes per day.

What unique opportunities does Threads offer to advertisers?

Threads could provide access to a new and distinct user base, which might not be reachable through existing platforms like X. Attracting vibrant, niche communities could be one way Threads differentiates itself.

Will Threads divert ad spend from other platforms?

It’s unlikely in the short term. Advertisers may use Threads within their existing Meta budgets and will closely monitor its performance before reallocating funds from other platforms.

Feel free to dive deeper into Threads and unlock its full potential as an advertising platform while keeping these considerations in mind.

Challenges and Opportunities for Advertisers on Meta's Threads

Table of Contents

Introduction

The Current Landscape