Threads was launched by Meta in July 2023 as a direct competitor to X, formerly known as Twitter.
The platform was introduced at a time when X was facing user dissatisfaction and uncertainty following its acquisition by Elon Musk.
Meta positioned Threads as a more positive and engaging alternative, integrated closely with Instagram.
The app saw rapid growth in its early days, surpassing 100 million sign-ups within its first week.
However, user engagement declined in the months that followed, leading Meta to introduce new features and improvements to retain its audience.
Now, with over 300 million monthly active users, the company is moving towards monetization by testing advertisements on the platform.
Started Friday
Meta has announced that it will begin testing ads on Threads with select brands in the United States and Japan.
The test, which started on Friday, will introduce image-based ads within the main feed, appearing between user posts for a small percentage of users.
The company stated in a blog post that it will closely monitor the results before determining whether to expand ad availability to a wider audience, according to Hotnews.
Advertisers will also be able to extend their existing campaigns from other Meta platforms to Threads.
As part of this initiative, Meta is introducing an AI-powered ad inventory filter.
This feature will give advertisers control over the sensitivity of the organic content that appears near their ads.
The company aims to provide businesses with more control over ad placements while optimizing engagement on the platform.
The decision to monetize Threads follows recent changes in content moderation across Meta’s platforms.
Analysts suggest that the introduction of ads so soon after these adjustments could create concerns among advertisers.
However, with TikTok facing increasing scrutiny and regulatory challenges, many brands are actively seeking alternative platforms to reach their audiences.
Meta recently ended its fact-checking program in the U.S. for Facebook, Instagram, and Threads, signaling a shift in its content policies.
Despite the introduction of ads, Meta does not expect Threads to become a major revenue source in 2025.
During an October earnings call, CFO Susan Li stated that significant ad revenue from the platform is not anticipated in the short term.
Meta plans to invest up to $65 billion this year in artificial intelligence development.
CEO Mark Zuckerberg has emphasized that these investments are aimed at strengthening Meta’s position against AI competitors such as OpenAI and Google.
