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Launched in summer 2023, Threads made its debut eight months after Elon Musk acquired Twitter, now known as X. Changes like paid subscriptions and reduced content moderation had begun driving away users and advertisers from the platform.
The introduction of advertising on Threads was anticipated, as Meta primarily generates revenue from ads across its free platforms. Adam Mosseri, head of Instagram and Threads, announced a small test for ads on Threads with select brands in the US and Japan.
Mosseri indicated that his team would closely monitor feedback to ensure that the ads felt relevant and interesting to users, aiming to blend seamlessly with Threads posts.
The rollout of ads comes amid heightened scrutiny of Meta. CEO Mark Zuckerberg's decision to end the company's US fact-checking program—an essential tool for combating online misinformation—and relaxing content moderation rules to allow more controversial speech mirrors X's policies.
This move was perceived as an attempt to appease former President Donald Trump, whose conservative base has criticized third-party fact-checking as a means to suppress free speech and censor right-wing content.
Emarketer analyst Jasmine Enberg noted that the launch of Threads ads, following Meta's content moderation changes, might raise concerns among advertisers. She predicted that users skeptical of Meta could react negatively.
The current volatility at TikTok is prompting brands to seek alternatives, and Meta is keen to capitalize on this opportunity by promoting Threads.
TikTok, the popular video-sharing app, faces uncertainty in the US due to a law banning the app, which took effect on January 19. Concerns about the Chinese government's potential exploitation of the platform have led to this legislation, although Trump has temporarily suspended its implementation.
Meta claims that Threads has 300 million monthly users; however, these figures are under scrutiny. Critics argue that Instagram often redirects users to Threads without their explicit consent, potentially inflating user statistics.