Meta’s Threads Emerges as Potential Advertiser Magnet, But Early Days Bring Uncertainty, Analysts Note

Meta Platform’s (META.O) new social media platform, Meta Threads, is emerging as a potential contender to challenge Twitter’s dominance in the microblogging space. While Elon Musk’s upcoming Twitter rebranding has generated curiosity, some advertisers find Threads less contentious and more predictable, making it an attractive option to shift marketing budgets in the future.

Since its launch on July 5, Threads has seen remarkable growth, becoming the fastest-growing social media platform to reach 100 million users. Despite a slight drop in downloads and engagement in the immediate aftermath of its debut, analysts believe Meta Threads has significant potential for ad revenue if it can sustain its user base.

Various forecasts estimate that if Threads manages to retain users, it could generate impressive annual ad revenue, ranging from $2 billion to $8 billion. Brands are already taking notice of Threads’ potential, with some considering integrating Threads posts into their marketing campaigns alongside other platforms like TikTok and Instagram.

While Threads still has some way to go to match Twitter’s reach, it has garnered tens of millions of daily users, and the team is actively working on improving the user experience and retention.

Advertisers’ interest in Meta Threads is partly fueled by concerns about Twitter’s tone of discourse and policy changes since Musk’s acquisition. Some brands have already shifted their ad spending away from Twitter, and the hope is that Threads, backed by Meta’s resources and experience with Instagram and Facebook, will provide a more stable advertising platform.

Meta Threads’ current limitations, such as the absence of direct messaging, hashtags, and keyword searches, may affect its appeal to advertisers. However, many brands are experimenting with Threads, finding it refreshing and reminiscent of the “glory days of Twitter.”

Meta’s aggressive investment in AI capacity has been evident in its efforts to boost traffic to Facebook and Instagram and increase ad sales. The company’s upcoming quarterly report is expected to show robust revenue growth.

Despite the early signs of promise, Meta’s CEO, Mark Zuckerberg, has emphasized that the company will only consider monetizing Threads once it reaches a substantial user base of 1 billion.

In conclusion, Threads is gaining traction as a potential challenger to Twitter, attracting brands eager to explore its advertising potential. While it still faces some limitations, the platform’s growth and Meta’s commitment to refining the user experience could position Meta Threads as a significant player in the social media landscape in the future.

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Social Tech

TikTok Denies Reports of Potential US Sale to Elon Musk

by George Mensah 2025-01-19

TikTok has categorically denied reports suggesting that its U.S. operations might be sold to billionaire Elon Musk.

This statement came in response to a Bloomberg report claiming that Chinese officials were considering selling TikTok’s U.S. business to Musk if their efforts to overturn an impending ban in the Supreme Court failed.

“We can’t be expected to comment on pure fiction,” a TikTok spokesperson told Variety.

TikTok’s Legal Battle Over U.S. Ban

The platform is currently awaiting a Supreme Court ruling on whether the ban violates the First Amendment. On January 10, justices heard arguments, with initial indications suggesting they might uphold the ban. The restriction is set to take effect on January 19.

The ban stems from legislation signed by President Joe Biden in April 2024, allowing the government to block foreign-owned apps viewed as potential threats to national security. TikTok faces a January 19 deadline to divest its U.S. operations or risk removal from app stores across the country. Instead of complying, TikTok has chosen to challenge the law in court.

Reports of Contingency Plans

According to Bloomberg, Chinese officials are reportedly exploring alternative options, including the possibility of selling TikTok’s U.S. branch. One scenario mentioned involves Musk’s company, X (formerly Twitter), taking over TikTok’s U.S. operations in collaboration with ByteDance, the app’s Chinese parent company.

This speculation has drawn attention due to Musk’s perceived alignment with President-elect Donald Trump. Trump recently requested the Supreme Court delay the ban, stating his intention to address the issue diplomatically after taking office.

Broader Context and Implications

The situation highlights the ongoing tension between the U.S. and China over issues such as data security and technological influence. While TikTok has consistently denied accusations of data misuse or ties to the Chinese government, the app has become a flashpoint in broader geopolitical conflicts.

A potential sale to Musk could significantly reshape TikTok’s U.S. operations, aligning them with the vision of an entrepreneur already transforming social media under his leadership. However, TikTok’s outright dismissal of such claims indicates its commitment to maintaining its independence and fighting the ban through legal channels.

As the Supreme Court decision looms, the future of TikTok in the U.S. hangs in the balance, with far-reaching implications for its American user base and the global tech ecosystem.

Social Tech

Why changes to the block on Elon Musk’s X are driving users away

by George Mensah 2024-10-19

Elon Musk’s platform X is preparing to overhaul its block function, breaking away from traditional social media practices. Under the new policy, blocked users will still be able to view the posts of the person who blocked them, as long as the posts are public. However, they will be restricted from liking, reposting, or replying to these posts.

Musk has previously voiced his opinion on the issue, stating, “Blocking public posts makes no sense. It needs to be replaced by a stronger mute function.” Jack Dorsey, former Twitter co-founder and CEO, also supports this approach.

Elon Musk’s X are driving users away

While Musk and Dorsey argue that blocking public posts is redundant—since anyone can access them by simply logging out—others, like Tracy Chou, founder of the anti-harassment tool Block Party, believe the block function provides an essential layer of protection. Chou stated on X, “The friction matters! Making it easier for people to engage in harmful behavior isn’t a good thing.”

In response to the proposed changes, many X users are exploring alternatives, leading to a significant rise in activity on platforms like Bluesky. Over a two-day span, Bluesky saw 1.2 million new users and climbed to the second spot in the U.S. App Store’s Social Networking category, a dramatic jump from its previous ranking of 181.

Though user spikes don’t always translate into sustained engagement, this policy shift could have more lasting effects compared to X’s previous changes, such as its rebranding from Twitter. The adjustment focuses on the rights of blocked users, potentially putting those who rely on blocking for protection at greater risk.

X’s engineering team defended the update, stating, “Currently, block can be used to hide harmful or private information. With this change, users will gain more transparency and visibility into these behaviors.”

As X continues to evolve under Musk’s leadership, these changes may lead to a shift in user behavior, with more people seeking alternatives, potentially reshaping the social media landscape.

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