Ads make debut on Threads as Meta explores new monetisation strategy

Threads begins ad test with select users in the US and Japan to explore monetisation.

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Meta has begun testing advertisements on its microblogging platform, Threads, as the company looks to explore new revenue streams. The move comes after the platform’s year-and-a-half existence as one of Meta's few ad-free services.

In a statement, Adam Mosseri, head of Instagram, confirmed that the test would start with a select group of users in the United States and Japan. The ads will appear as image posts within users’ feeds, with the aim of integrating them seamlessly with organic content.

This marks the first step in Meta’s efforts to monetise Threads, which launched in July 2023 as a competitor to X (formerly Twitter). Although the platform initially stood apart from Meta’s other services by avoiding ads, the company now seeks to leverage its large user base to generate revenue.

Mosseri acknowledged that the initial phase would involve a limited audience, saying, "We know there will be plenty of feedback about how we should approach ads, and we are making sure they feel like Threads posts you’d find relevant and interesting.”

The test will be limited to “a small percentage” of users in the two countries, with a few brands participating. The ads will appear as sponsored content similar to what users encounter on other Meta platforms, such as Facebook and Instagram. Meta also plans to closely monitor user feedback before scaling up the ads more broadly.

Meta has streamlined the process for advertisers by integrating Threads into its existing advertising system. Brands can extend their existing Meta ad campaigns to Threads with minimal effort by simply ticking a box in the Ads Manager.

Photo: META

The company is also testing an "inventory filter" that allows advertisers to control the sensitivity of the content in which their ads appear. This feature is designed to give brands more control over their ad placements, particularly as Meta loosens its content moderation guidelines.

The decision to launch ads on Threads comes sooner than Meta initially anticipated. The platform has grown to 300 million monthly active users, prompting the company to move ahead with the ad rollout before reaching the originally projected milestone of one billion users.

Threads had been testing ads in small batches since August 2024, and recently, the platform was included as a placement option in Meta’s Ads Manager.

Mark Zuckerberg, CEO of Meta, has previously indicated a slow approach to building Threads’ advertising business. “All these new products, we ship them, and then there’s a multi-year time horizon between scaling them and then scaling them into not just consumer experiences but very large businesses,” Zuckerberg said last year.

Despite the slow start, Meta’s deep integration with its other platforms and established ad infrastructure could enable it to scale quickly, reaching a much larger number of advertisers in the future.

Meta’s existing monetisation policies will apply to Threads, meaning any content that violates its Community Standards will not be eligible for ads. This approach ensures that ads appear alongside relevant, brand-safe content. Additionally, users will have access to tools that let them control the types of ads they see, providing a degree of customisation in their experience.

The move to introduce ads on Threads is part of Meta’s broader strategy to compete with X, especially following Elon Musk’s acquisition of the platform in 2022. As X continues to face challenges, including regulatory pressures and shifting policies, Meta sees an opportunity to attract advertisers seeking an alternative platform for engaging with users.

Threads’ ad testing also comes amidst broader changes within Meta, including the company’s recent decision to relax its content moderation policies and dismantle its third-party fact-checking program, a shift that aims to promote "free expression."

As Meta continues to invest heavily in artificial intelligence—allocating $65 billion to AI projects this year—the addition of ads on Threads is expected to contribute significantly to the company’s revenue goals. A

lthough the test phase is small, Meta has ambitious plans to expand the ad feature to other regions in the near future, with the potential for greater advertiser involvement as the platform grows.