Home News Threads: A Year Later, Still Struggling to Lure Brands Despite Growth

Threads: A Year Later, Still Struggling to Lure Brands Despite Growth

A Year Later, Still Struggling to Lure Brands Despite Growth

Meta’s microblogging platform, Threads, celebrated its first anniversary with a substantial user base of over 175 million. Yet, despite this growth and the turmoil at rival X (formerly Twitter), brands remain hesitant to embrace the platform for advertising.

Hesitant Marketers and the Engagement Gap

Despite Threads’ rapid growth, marketers are cautious about investing in the platform. A common concern is the perceived lack of user engagement compared to the sheer number of sign-ups. Industry professionals emphasize the importance of platforms where users actively interact with content, driving higher ad performance.

The X Factor: Established Dominance and ROAS

Karan Kumar, of ART Fertility Clinics, notes that while people may experiment with Threads, they often return to X, highlighting its continued dominance. X’s established track record in delivering return on ad spend (ROAS), despite recent revenue drops, further solidifies its appeal to advertisers.

Why the Hesitation? A Cautious Adoption Cycle

Several factors contribute to the hesitation among brands. Digital experts point to the cautious adoption cycle that advertisers often follow. While early adopters might experiment with new platforms, mainstream advertisers typically await consistent performance and user retention data before committing significant budgets.

Meta’s Optimism and India’s Active User Base

A Meta spokesperson emphasized India as one of Threads’ most active markets globally. Mark Zuckerberg, during the Q1 2024 earnings call, expressed optimism about Threads’ growth trajectory and its potential as a platform for sharing thoughts and ideas.

A Year On: Uncertain Future for Brands

Despite its large user base, Threads still lags behind Meta’s giants, Instagram and Facebook, in terms of scale. While Meta actively works to improve user experience, it remains unclear whether these efforts will be enough to attract advertisers and make Threads a priority in brand’s social media strategies.

Waiting for the Ad Launch and the ‘New X’

The future of Threads as an advertising platform hinges on its ability to open up to advertisers, similar to Instagram. Meta representatives are reportedly in talks with ad agencies and brands, positioning Threads as the potential “new X.” However, industry insiders like Karan Kumar express doubts about Threads fully replacing X, citing the lack of incentives for existing X users to migrate and the platform’s format possibly not being visually appealing enough for younger users.


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