Meta’s Threads threatens Twitter’s turf with 30 million signups and no ads, yet
Jul 06, 2023
By Simone Del Rosario (Business Correspondent), Brent Jabbour (Producer), Brian Spencer (Editor)
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30M users have joined Threads after launch, challenging Twitter as rival app
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30M users have joined Threads after launch, challenging Twitter as rival app
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Meta’s new Twitter rival app Threads gets 10 million sign-ups within hours of launch
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Internet. 10 million registrations on the new social network Threads in seven hours
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10 months ago
Forget the cage match between Elon Musk and Mark Zuckerberg. Zuck is stepping into the ring with Twitter instead.
Meta launched Threads, a “public conversations app” that looks an awful lot like Twitter, one day early on July 5. Zuckerberg boasted that the app gained 10 million users within seven hours of launching.
Threads is far from the first challenge to Twitter since Musk bought the company – remember Mastodon? – but one day in, it’s already leaps and bounds ahead of the rest.
The business behind the latest social craze
In less than one day, Zuckerberg said Threads processed more than 30 million sign-ups. But his target user number has a ‘B,’ not an ‘M.’
“It’ll take some time, but I think there should be a public conversations app with 1 billion+ people on it,” Zuckerberg wrote. “Twitter has had the opportunity to do this but hasn’t nailed it. Hopefully we will.”
Twitter, meanwhile, has roughly 400 million users worldwide.
Threads’ big leg up is its companion app, Instagram, which boasts more than 2 billion active monthly users. Instagram users can sign up for Threads using their existing Instagram account, keeping the same handle and verification status if they already have a blue checkmark.
When Facebook bought Instagram in 2012 for $1 billion, many questioned the costly move for an app that was barely off the ground. But it turned out to be one of Facebook’s best moves. Time will tell whether Threads becomes a serious competitor to Twitter.
Musk is less than impressed, laughing at a tweet that suggests Threads is a carbon copy of Twitter.
Ads: The bottom line
Twitter has been on shaky ground with advertisers since Elon Musk bought the company. Global ad revenue this year is estimated to be 28% lower than it was in 2022 at around $3 billion, according to research firm Insider Intelligence.
And an exclusive New York Times report citing internal documents said Twitter’s U.S. advertising for five weeks starting April 1 was $88 million, down 59% from a year earlier.
Meanwhile, Meta is looking at 40 times Twitter’s ad revenue for 2023 between Facebook and Instagram, at around $121.9 billion, Insider Intelligence reports. But don’t expect Threads to be inundated by ads anytime soon.
“Our approach will be the same as all our other products: make the product work well first, then see if we can get it on a clear path to 1 billion people, and only then think about monetization at that point,” Zuckerberg wrote in a Threads post.
Advertising experts said when that time comes, Meta has a clear advantage with built-in commercial relationships with its existing partners.
Meta’s own ad troubles
The company lost at least one advertiser this week. Canada’s government pulled ads from Meta over the company’s refusal to carry and pay for news content, a result of the country’s Online News Act.
Meta is facing another blow from the EU with a court ruling that threatens the company’s highly-lucrative practice of targeted ads.
SIMONE DEL ROSARIO: FORGET THE CAGE MATCH BETWEEN ELON MUSK AND MARK ZUCKERBERG, ZUCK’S TAKING ON TWITTER INSTEAD.
THREADS IS FAR FROM THE FIRST CHALLENGE TO TWITTER SINCE MUSK BOUGHT THE COMPANY – REMEMBER MASTODON? BUT ONE DAY IN, IT’S ALREADY LEAPS AND BOUNDS AHEAD OF THE REST.
HERE’S WHAT TO KNOW ABOUT THE BUSINESS BEHIND THE LATEST SOCIAL CRAZE.
ZUCK BOASTED 10 MILLION SIGNUPS ON META’S THREADS IN THE FIRST SEVEN HOURS OF LAUNCH, BUT HIS TARGET USER BASE HAS A B IN FRONT OF IT.
HE SAID THERE SHOULD BE A PUBLIC CONVERSATIONS APP WITH 1 BILLION PEOPLE ON IT. TWITTER HAS HAD THE OPPORTUNITY TO DO THIS BUT HASN’T NAILED IT. HOPEFULLY WE WILL.
FOR THE RECORD, TWITTER HAS ROUGHLY 400 MILLION USERS WORLDWIDE.
THREADS’ BIG LEG UP IS ITS COMPANION APP, INSTAGRAM, WHICH BOASTS MORE THAN 2 BILLION ACTIVE MONTHLY USERS. YOU CAN SIGN UP FOR THREADS USING YOUR EXISTING IG ACCOUNT.
WHEN FACEBOOK BOUGHT INSTAGRAM IN 2012 FOR $1 BILLION – A LOT OF PEOPLE QUESTIONED THE COSTLY MOVE. BUT IT TURNED OUT TO BE ONE OF FACEBOOK’S BESTS. AND TIME WILL TELL US WHETHER THREADS IS WORTH ITS WHILE.
MUSK IS LESS THAN IMPRESSED, LAUGHING AT A TWEET THAT SUGGESTS THREADS IS JUST A TWITTER COPY CAT.
BUT TWITTER’S ON SHAKY GROUND. GLOBAL AD REVENUE THIS YEAR IS ESTIMATED TO BE 28% LOWER THAN IT WAS IN 2022, AT AROUND $3 BILLION, ACCORDING TO RESEARCH FIRM INSIDER INTELLIGENCE.
AND AN EXCLUSIVE NEW YORK TIMES REPORT SAID TWITTER’S U-S ADVERTISING FOR FIVE WEEKS STARTING APRIL FIRST WAS $88 MILLION, DOWN 59% FROM A YEAR EARLIER.
MEANWHILE, META’S LOOKING AT 40 TIMES TWITTER’S AD REVENUE FOR 2023 BETWEEN FACEBOOK AND INSTAGRAM. BUT DON’T EXPECT THREADS TO BE INUNDATED BY ADS ANYTIME SOON.
ZUCK SAID THE FOCUS IS MAKING THE PRODUCT WORK WELL FIRST, GET IT ON A CLEAR PATH TO ONE BILLION PEOPLE, AND ONLY THEN THINK ABOUT MONETIZATION.
BUT AD EXPERTS SAY WHEN THAT TIME COMES, META HAS A CLEAR ADVANTAGE WITH BUILT-IN COMMERCIAL RELATIONSHIPS WITH ITS EXISTING PARTNERS.
THE COMPANY DID LOSE ONE PARTNER THIS WEEK. CANADA’S GOVERNMENT PULLED ADS FROM META OVER THE COMPANY’S REFUSAL TO CARRY AND PAY FOR NEWS CONTENT.
AND META’S FACING ANOTHER BLOW FROM THE E-U WITH A COURT RULING THAT THREATENS THE COMPANY’S HIGHLY LUCRATIVE PRACTICE OF TARGETED ADS.
I’M SIMONE DEL ROSARIO AND IT’S JUST BUSINESS.
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Threads reaches 30 million users after launch
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Meta’s new Twitter rival app Threads gets tens of millions of sign-ups in its first day
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Meta’s new Twitter rival app Threads gets 10 million sign-ups within hours of launch
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Meta’s new Twitter rival app Threads gets tens of millions of sign-ups
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Meta’s new Twitter rival app Threads gets 10 million sign-ups within hours of launch
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Meta’s new Twitter rival app Threads gets tens of millions of sign-ups in its first day
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Meta’s new Twitter rival app Threads gets tens of millions of sign-ups in its first day
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Threads, Meta’s new social network, already threatens Twitter’s hegemony after its launch
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Mark Zuckerberg says Threads has 30 million users so far
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Meta’s new Twitter rival app Threads gets tens of millions of sign-ups in its first day
Click to see story on Maryland Daily Record
It looks and works like Twitter, and has millions of users right away: Threads gets off to a flying start
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Zuckerberg announces 10 million downloads of Threads in the first
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Internet. 10 million registrations on the new social network Threads in seven hours
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Internet. 10 million registrations on the new social network Threads in seven hours
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