Threads: Ad Opportunities to Come
When Will Brands Be Able to Advertise on Threads?
The question really isn’t about whether or not Threads will start to push out advertising opportunities, the question really is when. When Meta launched the Twitter/X competitor in early July, it was always to allow the app to take off organically. They will measure and analyze how users (and some Brands) use and interact on the initial version. From there it’s a matter of time before you’ll start to see those paid opportunities roll out.
With the many questions swirling around what is Threads, will it kill the Bird (we mean X) and what type of user will be the most engaged, we will tackle and speculate about how we feel this will impact the landscape of an already cluttered social ecosystem.
What is Threads?
Threads is a new app, built by the team over at Instagram that allows for sharing text updates and joining public conversations. Most people have compared it to what was formerly known as Twitter.
Threads and Twitter are very similar in that they both share text updates and allow users to join public conversations. With some of the negative publicity around Twitter and their open forums, Threads approach is more focused on updates between close friends and private messaging, whereas Twitter has a more open forum and allows for public conversations with a wider audience.
Twitter’s open forums are visible to the public which allows for a wide range of conversations and discussions to take place. Users then can engage with people from all over the world but this open approach has led to issues such as harassment, hate speech, and misinformation.
Threads, on the other hand, has taken a different approach and is focused on connecting users with their close friends. This means that the updates and conversations on Threads are more intimate and restricted to a smaller group of people. Its overall goal is to create a safer and more personal space for users to share and interact.
This alternative will need time to shake out. In their first 24 hours, they gained more than 30 million users which seems like a lot. But given the ease of joining (i.e. right from your Instagram account), the real test can they keep that momentum? Well, according to Forbes, Threads has seen a nearly 70% decline in the number of daily active users since its July 7 peak. Again, the expectations will be for Threads to maintain this user base and then monitor to see how users engage. From there, they will launch an ad platform.
For F**ksake, More Places to Advertise.
Being the media mavens we are, we will now need to to determine if another social platform should be added to the mix. Given that Threads has not started rolling out their ad model, we have a few minutes to breathe. But like all other emerging platforms, it’s only a matter of time. Meta did not create Threads for the consumer, it created Threads as another advertising channel to get Brands to put their dollars there to engage with users. They saw that Brands began to pull out of Twitter because of all the hoopla surrounding Elon and his nonsensical zigs and zags.
In 2022, Twitter’s users remained consistent. And in 2023, they have seen a slight decline to date – 4%. So to answer the question, did Threads kill the bird? The answer is a No. Twitter has some loyal followers. They are not gaining new followers but they are certainly not losing followers the way that Meta thought would come flocking over once Threads launched.
For all us Media people out there, we know Meta is just trying to decrease the percentage of pie that Google gets. Since Meta has not taken a sliver of the dollars available, they needed to find a new avenue to pull from. TikTok isn’t going anywhere so the hopes of Reels gaining more momentum has quieted. Twitter was really the only avenue they could “steel” from. Our prediction is they are going to need to move fast because Elon and his newly branded X has something up his sleeve. Never count Elon out.
As for an Ad Model for Threads
Once Threads opens the gates, our guess is you will see very similar ad opportunities that you currently see across Meta. It will be interesting to see if they bring video into the mix considering it’s a very text base model. Other than that, the data supporting it will be robust as it is connected to Facebook, Instagram and the other Meta platforms. Being able to build an audience with data from across Meta will have its benefits. So time will tell when (not if) they launch the ads model.
Whether it’s Threads or Twitter, We Can Help!
One thing we specialize in at Cordelia Labs is understanding the right media mix. Whether that be within Social or Paid Search (or any other channel) we Strategize to make sure we understand your goals, your audiences and then make the recommendation for the best mix available. We don’t play favorites because we know how each channel can contribute to your success. You don’t believe us, contact us today to give us a challenge. We know what we can produce in our lab, let us get your Brand moving in the right direction.