Threads is making headlines with its upcoming ad launch. Bloomberg reported that advertisements will be introduced in Threads and it looks to compete with Elon Musk’s X. However, advertisers are hesitant to invest heavily in Threads according to Digiday. 

Why the lack of enthusiasm?

The uncertainty about Thread’s audience 

Advertisers remain skeptical about Threads' advertising potential due to uncertainty around its user base. Despite Mark Zuckerberg’s claim that Threads boasts 175 million active users, it pales in comparison to its competitor, X, which has a user base of 570 million monthly users.

This translates to a difference of approximately 69.3% between the platforms. The disparity shows why advertisers might not want to invest in Threads until they can understand users’ characteristics and preferences.

“….a big barrier for advertisers to really take the initial plunge with Threads is down to the fact that they aren’t clear on who the audience is,” Digiday reported.

Issues with engagement and reliable metrics

When compared to X, Threads is experiencing lower user engagement and this poses a significant challenge for Threads.  For instance, X users spend about 32 minutes on the app daily, while Threads users spend only 7 minutes on the platform. 

Advertisers typically seek platforms where users are highly active and engaged to maximize the impact of their ads. The lower engagement on Threads may make it a less attractive option.

This means that advertisers will need to understand and measure how often users use the platform before they capitalize on threads to carry out marketing campaigns. 

Also, marketers need reliable metrics to evaluate the effectiveness of their ads. If Threads cannot provide clear data on user interaction and ad performance, advertisers might be put off.

What Meta can do to attract advertisers to Threads

An important aspect that could help Threads attract advertisers as suggested by Digiday is if major influencers and creators, like those on X, begin to use the app. This will build more credibility. 

Also, despite current challenges, there is potential for Threads to capture a new audience segment that X may not reach. For instance, with the U.S. elections coming up, “Threads would need to ensure it’s got the right safety controls in place”, to ensure that ads are displayed in appropriate contexts.