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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Heineken pushes up advertising and marketing paying to lure drinkers upmarket

Heineken pushed up its advertising and marketing and sales shell out by a fifth final 12 months to €2.7bn as the world’s second-largest brewer sought to entice inflation-hit individuals to switch to more upmarket beers.

The Dutch team, which also would make Tiger, Amstel and Birra Moretti, enhanced advertising and marketing and providing charges by 22.4 for each cent to a amount forward of pre-coronavirus pandemic shelling out, a rise driven by marketing and selling its products and solutions to shoppers.

That brought the determine to 9.5 for every cent of net revenues, or about €2.7bn, in the operate-up to the company’s very first Tremendous Bowl ad in many years and as it launched a new, lighter lager, Heineken Silver.

Dolf van den Brink, main govt, explained the team would have on shelling out a lot more on advertising and marketing to faucet into a trend of drinkers switching to extra upmarket products and solutions — a shift he explained was continuing irrespective of price tag of residing pressures.

“Consistently, our top quality manufacturers are rising more rapidly than the total portfolio,” he claimed. “There are lots of fears about . . . pricing and the resilience of customers, but we actually see, all the way to the fourth quarter, our high quality portfolio outperforming our whole portfolio.”

Van den Brink additional that Heineken was focused on advancement in its present models as the business moved on from a period of consolidation. “The relative value of [mergers and acquisitions] won’t be the same as it was in the past. Increasing our internet marketing invest is significant.”

Advertising invest remained the identical as a proportion of revenues from 2021, but that came in a context of steeply rising revenues — like-for-like income development was 19.1 per cent — as the team

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