In just a short span of a week, Threads, Meta’s new text-focused social networking app, has taken the social media world by storm. Building on our previous analysis of the context surrounding Meta’s launch, in this chapter, we delve into the recent developments that have unfolded, assessing their implications for the future of social media marketing in the short term.

Adam Mosseri, the head of Instagram, confirmed on Monday that Threads has amassed over 100 million sign-ups within five days of its public release, making it the fastest-growing consumer product ever. Several factors contributed to Threads’ rapid success: its seamless onboarding through Instagram accounts, a user-friendly cross-posting tool enabling content sharing with Instagram, and an algorithmic feed reminiscent of TikTok, ensuring relevant content discovery without the need to establish a follower network. A less discussed but noteworthy factor is the growing weariness of Twitter’s increasingly toxic environment, prompting users to seek alternatives.

However, as the saying goes, “Winning is easy; governing is harder.” Now that Threads has firmly positioned itself as a Twitter alternative with a substantial and expanding user base, the challenge lies in engaging and retaining these users while figuring out the path to monetization.

A STARTING POINT FOR MONETIZATION

Given Threads’ extraordinary momentum in user adoption and Meta’s commitment to maintaining a brand-safe platform, brands and marketers are already exploring opportunities on the app, even though Meta Business Suite’s ad products are yet to be integrated.

According to Ad Age, Meta representatives are engaging in discussions with ad agencies and brands, including Netflix and Wendy’s, both of which have already organically attracted substantial followings on Threads. Additionally, despite ongoing regulatory negotiations preventing Meta from launching the platform in the European Union, some EU-based Instagram users, such as football clubs and media companies, have started posting on Threads.

Axios revealed that Instagram plans to introduce its branded content tools, which allow companies and creators to incorporate paid partnership labels into their posts, on Threads. These tools will enable marketers to experiment with paid promotion on the app while conventional advertising options remain unavailable. As Meta applies Instagram’s rules concerning sponsored content to Threads, brands collaborating with influencers to create sponsored content will likely be required to utilize these tools on Threads as well.

These measures serve as a quick solution to initiate monetization on Threads. As a platform reliant on an algorithmic feed — currently the only feed option — Threads’ success ultimately hinges on the quality of its content. Convincing content creators that this social platform is worth investing in is paramount. Consequently, promptly integrating tools enabling creators to collaborate with brands and organically insert sponsored content into the feed is a logical and essential priority.

FUTURE DIRECTIONS FOR MONETIZATION

Incorporating Meta’s extensive ad products and its self-serving ad platforms should be the logical next step for Threads. However, Axios rightly points out that simply transporting Instagram’s ad products to Threads may not seamlessly align, as the optimal ad formats for the burgeoning platform remain unclear.

Twitter users appreciate concise observations and witty one-liners, while Instagram’s ads typically rely on visually captivating content. Furthermore, Meta’s expertise in direct-response ads and performance-based advertising, though successful in other contexts, has not translated well to Twitter due to the platform’s limited targeting capabilities. Threads could undoubtedly benefit from similar targeting and audience segmentation tools, but Meta must also adapt to the preferences of the Threads community. If Threads aims to be a “Twitter Killer,” Meta must avoid transforming it into another Instagram.

THE QUESTION OF LONGEVITY

Integral to the discussions on monetization is the question of Threads’ long-term viability. Numerous alternative social platforms, like Gas, Hive Social, and BeReal, have emerged in recent years, but few have demonstrated staying power. Can Threads keep users engaged in the long run, ensuring cultural relevance and, more importantly, monetization? Skepticism persists, with Mike Isaac from The New York Times highlighting the uncertainties surrounding Threads’ future prospects:

“If tech history is any guide, size and scale are solid footholds — but ultimately can only go so far. What comes next is much harder. Mr. Zuckerberg needs people to be able to find friends and influencers on Threads in the serendipitous and sometimes weird ways that Twitter managed to accomplish. He needs to make sure Threads isn’t filled with spam and grifters. He needs people to be patient about app updates that are in the works. In short, he needs users to find Threads compelling enough to keep coming back.”Recent reports indicate a decline in engagement on Threads, with the time spent on the app dropping over 50% from 20 minutes on July 7 to 8 minutes on Monday, as cited by Similarweb.

Following Threads’ launch, investor and analyst Eugene Wei published an insightful blog post last week, highlighting how Twitter inadvertently undermined the user experience for its dedicated user base. Twitter’s shift from a chronological timeline to an algorithmic feed, coupled with Elon Musk’s recent push for a pay-to-play model in hopes of generating subscription revenue, has significantly impacted user satisfaction. In contrast, Threads began with an algorithmic feed, contributing to seamless user onboarding. However, as long as TikTok remains accessible in the United States, Threads will directly compete with the immensely popular short-form video app, known for its exceptional ability to deliver relevant content to users, transcending cultural and linguistic barriers. Even if Threads’ algorithm proves equally effective, the question remains whether its predominantly text-based content can compete with TikTok’s full-screen short videos in terms of user engagement.

Overcoming these challenges and successfully integrating Threads into the fediverse would undoubtedly benefit users and ensure its long-term relevance as an ad-supported, user-friendly gateway to brand-safe content across fediverse networks. However, reconciling cultural differences poses a complex task for Meta.

TWITTER’S RESPONSE

Finally, the long-term prospects of Threads also depend on Twitter’s response. Some hope that Threads’ arrival will serve as a wake-up call for the blue bird app, and to its credit, Twitter has made two notable moves in response.

Firstly, Twitter quietly reinstated the older and superior version of TweetDeck on Saturday, while seemingly restoring legacy API access for third-party apps that had been previously cut off. This enables users to access Twitter content through popular third-party Twitter clients once again. Secondly, Twitter has begun compensating creators on its platform. TechCrunch reports that Twitter is now remunerating Twitter Blue creators who garnered 5 million monthly impressions for three months with a share of revenue generated from ads adjacent to replies to their tweets. Unfortunately, these positive measures alone may not offset the controversial actions of its billionaire owner.

In the brief period since Threads gained traction, Elon Musk has threatened to sue Meta, accusing them of allegedly copying Twitter and engaging in the “systematic, willful, and unlawful misappropriation of Twitter’s trade secrets.”

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