Meta Platforms announced on Wednesday its decision to extend advertising opportunities on its social media platform Threads to all eligible advertisers worldwide. This move aims to create new revenue channels amid growing uncertainties regarding tariffs.
Since its launch in July 2023, Threads has been positioned as a competitor to X, the platform owned by Elon Musk, attempting to attract users from the well-established micro-blogging site during a time of upheaval following Musk’s takeover.
As one of the largest social media entities globally, Meta primarily relies on advertising revenue, which supports its substantial investments in artificial intelligence infrastructure. The company is focused on maintaining its competitive edge in the rapidly evolving generative AI landscape.
However, the intensifying trade conflict between the United States and China poses significant risks to advertising revenues, with marketers hesitant to allocate budgets due to market instability. Despite this, some analysts are hopeful that Meta and Google will be among the last companies to face cuts in advertising spending.
Analysts from MoffettNathanson raised concerns on Tuesday, suggesting that Meta’s online advertising operations could face a $7 billion impact this year due to worsening trade relations, particularly if Chinese e-retailers reduce their advertising expenditure.
Nonetheless, Threads has seen a notable increase in its user base, surpassing 320 million monthly users. Additionally, ongoing discussions about a potential TikTok ban in the United States could enhance Meta’s appeal to advertisers.
The company began testing advertisements on Threads with select brands in the United States and Japan earlier this year and plans to launch ads in specific markets initially before expanding to additional regions.
Meta is set to announce its first-quarter financial results on April 30.
© Thomson Reuters 2025
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