Which Meta’s Threads Ad Features Are Driving Twitter Revenue?

(CTN News) – It has been reported that Meta Platforms has launched Threads, their new social media platform that competes with Twitter, and which appears to be less controversial and more predictable than Elon Musk’s platform, which has attracted a lot of controversy.

On the long run, analysts believe that Threads will be able to attract marketing budgets away from other platforms in the future.

With a launch date of July 5, Threads has already amassed 100 million users, which makes it the fastest-growing social media platform and the first genuine challenger to Twitter’s dominance in microblogging.

In response, Elon Musk announced on Sunday that Twitter plans to rebrand and change its logo, possibly to an X.

The launch of Threads was highly publicized, but Sensor Tower observed a decline in downloads and user engagement following the launch.

At the present time, advertising is not permitted on the platform.

The analysts remain optimistic about ‘ advertising potential, provided it is able to retain its user base despite this initial slowdown.

Bernstein has projected ambitious targets for ad spending, claiming that if the app retains users, it may generate $5 billion in ad revenue, the same amount as Twitter’s earnings in 2021, as mentioned in the July 18 note.

According to the authors, “the unprecedented adoption of … Threads now offers Meta some material green shoots to look forward to,” they said, while cautioning that it is still early days and that other upstarts such as Clubhouse have failed.

In a report released on July 11, Morningstar analysts stated that Threads could add between $2 billion and $3 billion to Meta’s revenue every year between 2024 and 2027.

According to Refinitiv, Evercore ISI analysts estimate could generate $8 billion in revenue by 2025, a small portion of the $156 billion in revenue analysts expect for Meta.

In the hope that Threads will flourish – thanks to Meta’s deep pockets and experience running Instagram and Facebook successfully – and in anticipation of its eventual introduction of advertising, some brands may already be considering how much money they may need to put aside for future marketing campaigns on the app, analysts and ad industry executives noted.

Several of her clients are considering adding posts along with TikTok or Instagram posts as part of sponsored deals with influencers, said Taylor Michelle Gerard, a senior executive at Blue Hour Studios.

In her opinion, it is a nice way to incorporate Threads into an existing campaign.

The launch of Threads ads will result in brands moving their ad spending from Twitter to Threads “without hesitation,” according to Matt Yanofsky, co-founder of Moment Lab, a brand marketing agency.

It is his understanding that some of his clients, who he did not name, are already examining whether to allocate a budget for Threads ads in the future.

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