Some advertisers view the "Threads" platform launched by "Meta Platforms" as less controversial and more predictable than Twitter, owned by Elon Musk. Analysts suggest that the new platform could eventually attract marketing budgets previously allocated to Twitter. Since its launch on July 5, the "Threads" app has become the fastest-growing social media platform, gaining a hundred million users, which seems to pose a serious threat to the microblogging app, Twitter. Musk announced on Sunday that "Twitter" will change its brand and logo to the letter "X."
Research company "Sensor Tower" reported that the "Threads" app experienced a decline in download rates and user interaction in the week following the buzz around its release. Currently, the platform does not offer advertising services. However, analysts anticipate lavish advertising spending as long as users continue to engage with the platform. If "Threads" successfully retains its users, it could achieve five billion dollars in annual advertising revenue, equivalent to what Twitter earned in 2021.
Matt Janofsky, co-founder of "Moment Lab," a branding-focused advertising agency, stated that once ads become available on "Threads," brands will undoubtedly redirect their advertising budgets away from Twitter.
**Early Days**
Andrew LaFond, a vice president at an advertising agency that worked with Nike, explained that some advertisers have already turned away from Twitter due to concerns about the tone of discourse and sudden changes in the platform's policies since Musk acquired the company last year. Twitter has not responded to a request for comment via email. Previously, it stated that it does not promote content that could violate its policies and that 99.99% of impressions on tweets are from "good" content.
Twitter acknowledged a decline in ad sales, with Musk stating last week that they had dropped by 50%, although the timeline he was referring to was unclear.
"Threads" still has a long way to go to reach the same level of utilization as Twitter. Twitter boasts nearly 240 million daily active users that could be monetized as of last July, according to the company's latest official announcement. Meta Platforms' CEO Mark Zuckerberg mentioned that the company will consider monetizing "Threads" once achieving clarity on reaching a billion users. Last week, Zuckerberg stated on his "Threads" account that ten million users visit the platform daily, and the team will focus on "improving the fundamentals and retaining users" by the end of the year.
The "Threads" platform does not currently support direct messaging, tagging, or keywords, which limits its appeal to advertisers looking to use it as a real-time event tracking platform, as users typically do on Twitter.
