Meta Platforms Inc. announced Wednesday that it is rolling out advertising capabilities on its Threads app to all eligible advertisers worldwide.
The move comes as the tech giant seeks to diversify revenue streams amid rising uncertainty tied to escalating U.S.-China trade tensions.
Launched in July 2023 as a competitor to Elon Musk’s X (formerly Twitter), Threads has rapidly gained traction, now boasting over 320 million monthly users. The growing popularity of the platform, combined with increasing speculation over a potential TikTok ban in the U.S., positions Threads as an attractive destination for digital marketers.
Meta began testing ads on Threads earlier this year with select brands in the U.S. and Japan. With Wednesday’s announcement, the company confirmed that ad placements will initially launch in select markets, with a broader rollout planned in the coming months.
Advertising continues to be Meta’s primary source of income, funding its expansive investments in artificial intelligence infrastructure. The company is betting on generative AI to maintain its competitive edge in the evolving tech landscape.
However, analysts at MoffettNathanson have cautioned that Meta’s ad business could face a potential $7 billion revenue loss this year due to the intensifying trade standoff between the U.S. and China. Chinese e-commerce companies, a major segment of Meta’s advertisers, may scale back spending in response to economic uncertainties and tariffs.
Despite these concerns, industry experts maintain that giants like Meta and Google would likely be the last to suffer from significant ad budget cuts, given their dominant market positions and robust user engagement metrics.
Meta is scheduled to release its first-quarter financial results on April 30, with investors closely watching how the Threads expansion and broader market dynamics impact its performance.
