Zuckerberg: "The Number of Users Will Surpass One Billion"
Meta Platforms, the parent company of Facebook (hereafter Meta), announced on April 23 (local time) that it will open advertising on its social networking service (SNS) Threads to all businesses worldwide.
This decision by Meta comes 21 months after Threads was launched in July 2023, targeting Elon Musk's X (formerly Twitter). Since January, Meta has been conducting initial advertising tests with select companies in the United States and Japan, and is now expanding this to a global scale. Meta stated, "Advertising will be available in select markets and will be expanded to additional markets through ongoing testing and learning."
Meta generates most of its revenue through advertising on its SNS platforms, including Instagram, Facebook, and WhatsApp. Market analysis firm MoffettNathanson recently projected that Meta's online advertising revenue could decrease by up to $7 billion this year, as trade tensions between the United States and China intensify. This is because Chinese e-commerce companies may reduce their advertising spending due to the conflict between the two countries.
Regarding the expansion of advertising on Threads, IT media outlet TechCrunch commented, "The Threads app quickly secured a user base thanks to the network effect of Instagram." The outlet further explained, "In this context, Meta's ongoing antitrust lawsuit with the U.S. Federal Trade Commission (FTC) has become a key issue. Depending on the outcome of the trial, Meta may be required to divest Instagram and WhatsApp."
Meta CEO Mark Zuckerberg stated in January that Threads is "gaining more than one million new sign-ups every day," and that "the number of monthly active users exceeds 320 million." He added, "I believe Threads will continue to grow as a leading discussion platform over the next few years. The number of users will surpass one billion."
However, Meta's Chief Financial Officer (CFO) Susan Li said, "The introduction of advertising on Threads will happen gradually," and added, "We do not expect advertising to be a major driver of growth this year."
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