Can Threads become an important medium for advertisers?

It’s been a year since the social platform Threads completed its entry into the technology space. Initially introduced as an alternative for X (formerly Twitter), Threads now has up to 200 million monthly active users, as stated by Instagram CEO Adam Mosseri.

Post by @mosseri

View on Threads

While the platform had the advantage of being backed by Instagram’s user base, its growth has been significant, especially since its active users have increased from 130 million users in February 2024 to 175 million users in July and the current number of users. 

With its expanding user base, can Threads become a significant platform for advertisers?

Ritika Malhotra, Head of Digital, Wondrlab says, “Brands will benefit from the ability to cross-promote content across Facebook, Instagram, and WhatsApp. This unified advertising strategy will allow brands to target users across multiple platforms effectively.”

Sowmya Iyer, Founder and CEO, DViO Digital believes that the platform’s initial success might be promising. However, capitalising on user dissatisfaction with X and leveraging Meta's user base alone may not be sufficient.

“The Indian market is a strong base, but building targeted advertising options and measurable engagement metrics will be crucial for long-term success," Iyer continues.

To truly compete, Iyer thinks, the focus needs to be on unique features, fostering dynamic user experience, and attracting creators who can engage audiences for brands. These factors could be crucial in determining how effectively Threads can serve as a valuable advertising medium.

While the platform currently doesn't feature ads, Meta plans to introduce advertising on the platform in the future. Its growing user base can prove to help advertisers.

Siddhartha Singh, Co-founder and Director of BlackCab Agency Network, is of the opinion that Threads presents an attractive opportunity for advertisers to engage in text-first internet conversations wherein brands can create deeper connections with their audience through in-depth discussions and curated content. 

“Threads' avoidance of political chatter and newsfeed content offers a quieter environment for brands to effectively engage with their target audience,” he continues.

Since its launch, Threads has positioned itself as a platform focusing on individual user engagement, urging them to join in on conversations they care about. While this is user-centric, it is important to understand what brands want from Threads, especially in terms of advertising and engagement. 

What do advertisers want?

Ritika Malhotra of Wondrlab goes back to the inception of Facebook and Instagram, stating that Facebook was perfect for building a community of friends and acquaintances, while Instagram lets people live vicariously through imagery, meeting their needs. Threads, in her opinion, is following a similar path by appealing more to individuals than brands right now.  

BlackCab Agency Network’s Siddhartha Singh says that brands are looking for key metrics from Threads, such as engagement percentage, daily active users, and daily average time spent on the app. 

Brands like Sephora, Spotify and Adidas are engaging their followers on Threads through user-generated content and collaborations with celebrities and influencers.

Post by @sephora

View on Threads

However, the platform's engagement and dwell time remain uncertain. Srishti Pandey, creative and founding member, The New Thing the platform’s initial launch led to an influx of brands hopping on the bandwagon. However, as a significant portion of the audience left Threads to return to Instagram or X, only a few brands have stayed.

According to Pandey, Threads is currently used by brands as just another social media platform. While it serves this purpose, it also holds untapped potential. If leveraged correctly, it can provide valuable user feedback and facilitate one-on-one connections with followers.

Interestingly, when asked if Threads can become an important medium for advertisers, Pandey notes that it can, however, she believes that the platform shouldn’t go that route. 

“We already have Instagram and X. We as an industry should let Threads be something everyone enjoys without having to see ads, brand posts and campaigns on it. The break is much needed and well deserved too.”

Going without ads seems unlikely, however, since Meta’s apps have observed increased ad impressions of 10% year-over-year, with the average price per ad also rising by 10%, in its recent revenue report. Meta is likely to leverage the growing user base to its advantage. 

Moreover, Threads is emerging as the dominant player as the platform has experienced triple the daily downloads of its competitor, X (formerly Twitter) on iOS worldwide, and more than double the downloads on Google Play. On its anniversary in July, Threads announced that India is one of the most active countries on the platform. Users in India frequently discuss film, TV, OTT content, celebrity news, and sports. Indian users are also more likely to tag other users and include videos in their posts compared to the global average.

Why are users on Threads?

What has contributed to these 200 million monthly users staying in its first year?

Ritika Malhotra of Wondrlab notes, “The platform's focus on private messaging and sharing moments with close friends appealed to users looking for more intimate communication.”

Additionally, it served as an alternative to X, attracting those dissatisfied with X's direction.

Srishti Pandey of The New Thing adds to this by saying as soon as it launched, Threads became what X used to be back in the day. 

“Threads put the social back in social media. The direct connection between Threads and Instagram is also a boon and bane. The ease with which you can directly connect with your followers on both platforms helps. It's like your Instagram personality meets your Twitter personality here.”

Threads has positively begun to nurture curated conversations that attract a very different audience. This could be one of the reasons why the platform has retained users.

Additionally, Siddhartha Singh of BlackCab Agency Network notes, “Threads has seen its user base pick deeper discussions and storytelling as compared to X, which has continued to be the go-to platform for banter, rapid commentary, and a mish-mash of opinions.”

While the platform has seen its user base pick deeper discussions and storytelling, Srishti Pandey of The New Thing has observed a decline in active users in her circle. She pointed out that if her friends or favourite creator won’t use this, why would she? 

“Simply because the novelty and initial excitement fizzled out soon due to the lack of proper marketing, both by the platform and creators and brands using the platform.” 

- Srishti Pandey

Threads needs to enhance its features and add new ones to compete with other established social media platforms. Social media experts highlight what the platform should offer to run ahead of the competition.

Differentiate from the ‘Instagram’ template

When suggesting what the platform needs to do, Siddhartha Singh notes, “Threads should look to differentiate itself from the ‘Instagram’ template and create value even for an existing Instagram user, rather than acting as a replacement for X or IG.”

Ritika Malhotra from Wondrlab says that adding support for videos, GIFs, and other media formats will make the platform more versatile and engaging. She also believes that including interactive features like polls, quizzes, and live streaming can increase user interaction and retention.

“Additionally, Threads should learn from X’s challenges with content moderation and bot management. Implementing good content moderation and minimising spam accounts are crucial for maintaining user trust and creating a secure, user-friendly environment,” she continues. 

While implementing good content moderation and minimising spam accounts are crucial, Singh comments that the platform’s algorithm should be able to identify snowballing conversations and take them out to large user bases in a short period, thereby creating the feeling of sensationalisation and news.

As of now, Threads is not sensationalising its content, unlike rivals like X. Srishti Pandey remarks that people return to X despite its unnecessary changes and updates because of the lack of a better platform. Threads had a chance to introduce features which will not only retain existing people but also call new users. 

Attracting advertisers aside, introducing an explore section can be one of the improvements on the platform that would not only retain existing people but also call new users. It will help in keeping posts from users’ following lists separate from posts from users around the world, according to Pandey.

To increase reach and inflow of users, features similar to Instagram and X’s hashtags or topics could allow users to group together related posts into a single feed, she continues.

Like Srishti Pandey pointed out if someone’s friends don’t use a social media platform, why would a user want to be on it? Before advertisers consider Threads as a viable platform for user engagement, time will tell if the platform is able to not just retain but also engage users. As Threads continues to evolve, it will be interesting to see how it balances the expectations of brands looking for engagement opportunities. Only then will advertisers consider it for their commercial needs.