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Monday, July 15, 2024

Threads soars to 175 million users

Analysts like Jasmine Enberg from eMarketer argue that Threads’ lack of distinctive character could hinder its long-term success.

A year and a half ago, Threads was just an idea in Mark Zuckerberg’s mind. Today, it boasts over 175 million monthly active users, a significant milestone for Meta’s latest social media endeavor. Launched on July 5th, 2023, Threads was strategically timed to capitalize on the turbulence at X (formerly Twitter) following its acquisition by Elon Musk. This timing, coupled with seamless integration with Instagram, helped Threads achieve 100 million downloads in its first week, making it the fastest downloaded app in history, surpassing even ChatGPT.

Initial Surge and User Retention

Despite its explosive start, Threads has faced challenges in maintaining user engagement. Data from Sensor Tower indicates a substantial drop in average daily sessions and time spent per user, with figures down 79% and 65%, respectively, from its initial peak. This suggests that while many users were quick to try the new platform, fewer have become regular, engaged users. The absence of daily active user statistics from Meta further suggests that Threads has yet to foster a loyal user base comparable to its other platforms like Facebook, WhatsApp, and Instagram.

Read More: Meta’s Threads launches creator bonus program

Strategic Expansion and Future Plans

Meta has focused on international markets to sustain Threads’ growth, with significant efforts in countries like Japan, where it sees potential to capture more market share from X. Despite being a financial loss leader for Meta currently, the platform’s integration with Instagram hints at a promising future for monetization. Internal discussions suggest that Threads could start displaying ads as early as next year, leveraging Instagram’s robust advertising infrastructure. This move could transform Threads into a lucrative venture for Meta, especially as it positions itself as a brand-safe alternative to X, which has seen advertiser exodus under Musk’s management.

Read More: Meta unveils exciting new features for Instagram and Threads

One of the critical hurdles for Threads is defining its unique identity. Adam Mosseri, head of Instagram, expressed his vision for Threads to become culturally relevant, drawing hundreds of millions of users. However, analysts like Jasmine Enberg from eMarketer argue that Threads’ lack of distinctive character could hinder its long-term success. The platform’s intentional downplaying of news and politics, while aimed at creating a friendly environment, risks making it less engaging for users seeking vibrant discussions on current events.