Meta’s Threads could lure ads from Twitter but it’s early days, analysts say

July 24 (Reuters) – Threads, Meta Platform’s (META.O) broadside to Twitter, is seen by some advertisers as less contentious and more predictable than Elon Musk’s platform, and analysts say it could lure away marketing budgets – eventually.

Launched on July 5, Threads became the fastest-growing social media platform to hit 100 million users, the apparent first serious threat to the dominant microblogging Twitter app. On Sunday, Musk said Twitter would rebrand and change its logo to an X. read more

Threads saw a drop-off in downloads and engagement in the week following its buzzy debut, according to research firm Sensor Tower, and for now is not open to ads.

But analysts have forecast lofty ad spending targets – with the caveat that they depend on whether users stick on.

If the app manages to retain users, Threads could achieve $5 billion in annual ad revenue, equaling what Twitter earned in 2021, Bernstein said in a note on July 18.

“The unprecedented adoption of … Threads now also offers Meta some material greenshoots to get excited about,” they said, while cautioning that it was still early days and other upstarts like Clubhouse had fizzled out.

Morningstar analysts said on July 11 that Threads could add between $2 billion and $3 billion to Meta’s revenue every year between 2024 and 2027. Evercore ISI analysts estimated on July 9 that Threads could generate $8 billion in annual revenue by 2025, a small portion of the $156 billion revenue analysts expect for Meta that year, according to Refinitiv.

In the hope that Threads will flourish – thanks to Meta’s deep pockets and experience with successfully running Instagram and Facebook – and expectation it will introduce advertising eventually, some brands may already be considering how much money to set aside for future marketing campaigns on

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