Digitas North America’s Ariel Sims assesses the Threads and X era of the social ad market

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For all the attention being paid to X (née Twitter) these days, Ariel Sims is keeping a closer eye on Meta’s Threads at the moment. Between the two text-based social platforms, the latter is the one that the svp and head of paid social at Digitas North America said she’s spending more time talking with clients about and thinking about.

“We’re having more conversation around [Threads]. But because my remit is typically in paid [advertising and] there’s no paid advertising on Threads, it’s more of a POV around what are you seeing, what’s the usage looking like, how do we play in that space,” Sims said on the latest Digiday Podcast episode.

Threads usage appears to have gone down significantly since its launch in early July. According to Sensor Tower, daily usage was down 82% in less than a month. Nonetheless, Sims sees Threads staying in the conversation for “at least the next six, eight months.” At which time Meta may finally introduce ads on Threads after playing coy on its ad plans with ad buyers so far.

“All we know is that it’s not this year [when Meta will introduce ads to Threads]. That’s the only thing that we’ve heard,” Sims said.

Here are a few highlights from the conversation, which have been edited for length and clarity.

Expectations for Threads ads

I think it’s going to roll into [Meta’s] native platforms and ads manager. That’s my assumption. Like as an additional placement, which makes sense. More inventory equals lower CPMs.

Threads vs. X

What I want to see with Threads ads is how it differentiates itself from X. One of the strongest advertising products on X has got to be Amplify, the pre-roll [ad] into content that people want to see.

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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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