Bluesky considers subtle ad formats as it grows its user base

Bluesky has gained popularity for its community-driven, decentralised approach, but concerns remain over how the platform will eventually monetise. With $15 million in funding, the paltform is exploring multiple potential revenue streams, including social media subscriptions, algorithm marketplaces, and selling domain names. While CEO Jay Graber has committed to avoiding the traditional ad-driven models of other platforms, she’s not ruling out advertising entirely.

During an appearance at TechCrunch’s StrictlyVC event, Graber shared that if the platform does introduce ads, they would be "user intent-driven," focusing on keeping user incentives aligned without making attention the product. Graber stressed the importance of avoiding the algorithmic feed-based advertising models that have been criticised on platforms like Facebook and Instagram.

The platform’s open protocol, allowing users to create ad-free feeds, presents a challenge to traditional ad-based business models. However, Graber indicated that Bluesky may experiment with more subtle ad methods, such as placing ads in search results. This would allow Bluesky to monetise without disrupting the core user experience.

Graber also ruled out AI licensing deals, clarifying that the platform will not train AI models on its users' posts and is exploring ways to prevent bots from scraping its public content. With growing interest from investors and a surge in users, from 3 million in February to 24 million today, the platforms' focus remains on expanding its user base before introducing monetisation strategies.

While ad-free for now, Bluesky’s future could involve a mix of revenue streams that preserve its unique value proposition: user control over the platform experience.