Instagram recently faced scrutiny after developers and reverse engineers uncovered references to ad products in the code of the Threads app. The code contained mentions of the word “ads,” sponsored items, and ads configuration. Additionally, a JSON file used for testing purposes was found in the publicly available Threads mobile app. Developers were able to force a post to appear as a sponsored post, showcasing how a “Sponsored” label would appear next to a Threads username. Tech veteran Chris Messina also found a JSON file in the app referring to a sample ad unit under development.
Despite these discoveries, Instagram spokesperson Alec Booker stated that the company is not currently testing ads in Threads and has no immediate timeline for monetization. This aligns with previous statements from Meta, including CEO Mark Zuckerberg’s explanation that new products must scale before becoming large businesses. Zuckerberg emphasized the importance of first focusing on user retention and community growth before monetizing Threads. The company continues to add features to the app, such as cross-posting from Instagram, multiple drafts support, and audience insights, indicating a focus on user experience before ads.
Threads, launched just over a year ago, is Meta’s attempt to challenge Twitter (now X) in the social media space. With aspirations to reach 1 billion users in the future, Threads could serve as a lucrative advertising platform for brands and marketers. As Instagram head Adam Mosseri confirmed, Meta plans to introduce ads to Threads to support operational costs and provide the service for free. Mosseri highlighted the necessity for Threads to generate revenue to sustain itself, emphasizing the business aspect of the app.
Challenges and Opportunities for Advertisers
For advertisers, Threads presents an opportunity to explore a new advertising channel within the Meta ecosystem. The familiarity with Meta’s ad tools and their performance metrics could ease the transition to Threads once ads are officially introduced. This familiarity could lead to increased ad spending on Threads, as brands seek alternative platforms to diversify their marketing efforts. Additionally, Threads may offer a safer advertising environment compared to other social media platforms, considering recent concerns over brand safety on X.
While discussions around monetizing Threads are ongoing, Meta remains focused on enhancing the user experience and growing the app’s user base. The development of ad technology within Threads signals a potential shift towards monetization in the future. As the company continues to iterate on features and scale the app, the introduction of ads could be a strategic move to diversify revenue streams. With Meta’s long-term vision of Threads reaching a broader audience, advertisers can anticipate new opportunities to engage with users on the platform.
Instagram’s denial of testing ads in Threads does not rule out the possibility of future monetization efforts. The uncovering of ad-related references in the app’s code signals potential plans for introducing ads in Threads down the line. As Meta navigates the delicate balance between user experience and revenue generation, Threads could evolve into a valuable advertising platform for brands seeking to connect with a diverse audience.Advertisers should monitor developments within Threads closely to capitalize on new marketing opportunities when ads are officially launched.