Meta’s Threads, a new social media app, has quickly gained popularity, amassing more than 30 million sign-ups within 18 hours of its launch. This rapid growth has positioned Threads as the first real contender to Elon Musk’s Twitter. The app leverages its access to billions of Instagram users and adopts a similar aesthetic to that of its rival. Referred to as the “Twitter-Killer,” Threads became the top free app on Apple’s App Store in the UK and the US. The emergence of Threads follows a period of ongoing rivalry and exchanges of words between Meta CEO Mark Zuckerberg and Twitter’s Musk. In fact, the two even threatened to engage in a real-life mixed martial arts match in Las Vegas. Analysts, such as Jasmine Enberg of Insider Intelligence, praise the app for its user-friendly interface and successful execution, highlighting the significant blow it has dealt to Twitter in the ongoing competition.
Twitter’s Vulnerability and Threads’ Advantage
Twitter has faced challenges ever since Elon Musk’s purchase of the social media platform for $44 billion last year. Musk’s subsequent chaotic decision-making has resulted in alienating both users and advertisers. One of the recent moves that Musk implemented was to limit the number of tweets users can read per day. These missteps by Twitter have created an opportunity for well-funded competitors like Meta Platforms. Analysts and experts argue that Meta’s access to Instagram’s vast user base and its advertising strength make it a formidable rival to Twitter. Niklas Myhr, a marketing professor at Chapman University, believes that Threads’ release came at the perfect time to potentially overthrow Twitter. He emphasizes that if users adopt Threads, advertisers will closely follow suit. While other competitors like Mastodon and Bluesky have found limited success, Threads has a strong chance due to its association with Instagram and Meta’s financial backing.
Threads’ Limitations and Potential
While Threads is a standalone app, it allows users to log in using their Instagram credentials, making it a seamless addition for Instagram’s over 2 billion monthly active users. However, the app currently lacks certain features that are present on Twitter. For instance, Threads does not support hashtags or keyword searches, preventing users from following real-time events. Additionally, the app does not offer direct messaging functionality and lacks a desktop version, which is crucial for certain user groups such as business organizations. Users, including prominent tech reviewer Marques Brownlee, have expressed the need for a feed that exclusively consists of content from people they follow. Currently, users have limited control over their main feed. Nevertheless, Mark Zuckerberg, the CEO of Meta, remains optimistic about Threads and has already amassed a million followers on the platform. He acknowledges the absence of certain features and expresses hope for the development of a public conversations app with a billion or more users, an opportunity that Twitter failed to fully capitalize on.
Monetization and Revenue Potential
Threads currently does not display ads, and Zuckerberg has stated that the company will only consider monetization once the app achieves a clear path to 1 billion users. However, existing advertising relationships from Instagram and Facebook should contribute to Threads’ future revenue. Pinar Yildirim, an associate professor of marketing at the University of Pennsylvania’s Wharton School, asserts that Facebook is a more reliable bet compared to Twitter and is a major player in the advertising market. Analysts draw parallels between Threads and Meta’s success in integrating features from platforms like Snapchat and TikTok into Instagram, as seen with Instagram’s Stories and Reels. This successful integration has led several brokerages to raise their price target for Meta, whose shares have already doubled in value this year.
In Conclusion
Meta’s Threads has swiftly emerged as a strong competitor to Elon Musk’s Twitter, capitalizing on its access to Instagram’s massive user base and offering a user-friendly interface. Twitter’s recent missteps have created an opportunity for Threads to gain traction and potentially overthrow its rival. While Threads currently lacks certain features and functionalities, its association with Instagram and the backing of Meta Platforms provide a significant advantage. The app’s revenue potential is supported by existing ad relationships from Instagram and Facebook. As Meta continues to refine and expand Threads, the rivalry between Meta and Twitter intensifies, with Meta’s success in integrating features from other platforms serving as a testament to its potential for growth and innovation.
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