Despite the rapid growth of Meta’s Threads in the past one year, marketers remain hesitant to invest in the platform. A senior marketer from the BFSI space shared with e4m, “High user numbers do not always translate to high engagement. We look for platforms where users actively engage with content, which drives higher ad performance.” He noted that he has rarely seen individuals scrolling through a brand’s page on the app.
Karan Kumar, Group Chief Marketing and Growth Officer at ART Fertility Clinics, echoed this sentiment: "I have known people who have signed up on Threads but very rapidly come back to X,” highlighting how X remains ahead in the game.
Since April 2024, Threads has generated buzz with the anticipation of launching ads. According to a Digiday report, beta testing for ad options is expected, though exact dates remain unknown. However, Meta did not comment on the ad launch.
X’s ad revenue dropped by an estimated 45% in 2023 from two years prior, with major advertisers like Disney, Paramount, and IBM pulling back due to brand safety concerns. Despite this, marketers believe X still offers better opportunities for delivering ROAS (return on ad spend). Aabhinna Suresh Khare, Chief Digital and Marketing Officer and Head of Strategy at Bajaj Capital, mentioned that while Threads might be appealing for individual use, it is not yet as useful for brands.
Why the hesitation?
Digital experts point to several factors affecting advertiser sentiments towards Threads. One expert explained that advertisers often follow a cautious adoption cycle. “Early adopters might experiment with new platforms, but mainstream advertisers usually wait for evidence of consistent performance and user retention before committing substantial budgets,” the expert said.
Another factor contributing to marketers' hesitation is the established track records of platforms like Facebook, Instagram, and X in delivering ROI. Advertisers are often reluctant to shift budgets away from these reliable channels.
Meta’s youngest platform, Threads, recently completed a year since its launch in July 2023. The platform now hosts over 175 million users. This compares with 600 million monthly users claimed by X.
Within 24 hours of its launch, positioned as a competitor to Musk-owned X, Threads garnered 50 million users. However, Sensor Tower estimates that Threads now, after a year, has only 38 million daily users, indicating that users are using it less frequently than other social media platforms.
A Meta spokesperson noted that India is one of the most active countries for Threads globally. During the Q1 2024 earnings call, Mark Zuckerberg said, “Threads is growing well. There are now more than 150M monthly actives, and it continues to generally be on the trajectory I hoped to see. Threads also continues to see good traction as we continue to ship valuable features and scale the community.”
The excitement surrounding Threads raises questions about its viability as a go-to platform for brands and marketers. Despite its 175 million users, Threads is still far from reaching the scale of Meta’s Instagram or Facebook, according to industry experts.
“It’s been a year now, and we’re seeing it become a place where people feel comfortable sharing their thoughts and ideas,” a Meta spokesperson said, explaining the efforts to improve user experience. But whether this is enough to attract advertisers or make Threads a priority in brands’ social media plans remains uncertain.
These are just the market's expectations for now. Clarity will come once Threads opens up to advertisers, like Instagram. According to an AdAge report, Meta representatives have been in talks with ad agencies and brands about how Threads could potentially become the ‘new X’.
Kumar added, “I don't think it will replace X as there is no incentive for an existing X user to migrate, especially if she/he enjoys a big user base already. Second, I don't know if this format has enough to get new, younger users to sign in as they are more visual in their platform comfort.”
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