Meta’s new app, Threads, has seen rapid adoption, registering over 30 million sign-ups in roughly 18 hours after its launch. This swift uptake positions Threads as a formidable competitor to Twitter, which is owned by Elon Musk, leveraging its connection to Instagram’s vast user base and its similar interface.
Often referred to as the “Twitter-Killer,” Threads became the top free app on Apple’s App Store in both the UK and the US on its launch day. The app emerges against a backdrop of ongoing social media rivalry, marked by exchanges between Meta CEO Mark Zuckerberg and Musk, including their publicized threats of a mixed martial arts match in Las Vegas.
“Zuckerberg’s entrance into this space has dealt a serious blow to Twitter, showcasing Meta’s strong execution and user-friendly design,” noted Jasmine Enberg, a principal analyst at Insider Intelligence.
Since Musk’s acquisition of Twitter for $44 billion last year, various alternative platforms have attempted to gain traction, largely due to Musk’s controversial decisions that have alienated parts of the user base and advertisers. His latest move involved implementing limitations on the number of tweets users can view daily.
Industry analysts suggest that Twitter’s recent challenges create a window for well-capitalized competitors like Meta, especially given its access to the extensive Instagram audience and robust advertising capabilities.
“Threads launched at an opportune moment to increase its chances of overtaking Twitter,” commented Niklas Myhr, a marketing professor at Chapman University, in light of Twitter’s turmoil following its user limitations.
“With Threads building on the established Instagram platform, it’s likely to gain a quick following, and advertisers will likely follow suit if user adoption spikes,” he added.
Although other competitors exist, their success has been limited. Mastodon reports about 1.7 million monthly active users, while Bluesky, backed by Twitter co-founder Jack Dorsey, has approximately 265,000 users. In contrast, Twitter had around 229 million monthly active users as of May 2022 prior to Musk’s buyout.
Threads’ Current Limitations
While Threads functions as a standalone application, users can sign in using their existing Instagram credentials, making it an attractive option for Instagram’s 2 billion monthly active users. Nevertheless, Threads currently lacks some of the features that make Twitter popular.
“Every major social platform should accommodate at least a billion users, and while Twitter had the chance to develop this, they haven’t fully succeeded. We aim to do better,” Zuckerberg expressed on Threads, where he has already garnered a million followers.
Notably, Threads does not support hashtags or keyword search functions, limiting users from tracking real-time events as they would on Twitter. It also currently lacks direct messaging capabilities and a version for desktop users, which many businesses often rely on.
Feedback from early users, including tech reviewer Marques Brownlee, has highlighted the desire for a feed exclusively displaying content from followed accounts, noting that users presently have limited control over what appears in their main feed.
Linda Yaccarino, the CEO of Twitter, noted in a tweet that “everyone’s voice matters” on their platform, asserting, “We are often imitated, but the Twitter community is unique and irreplaceable.”
At this point, there are no advertisements running on Threads, and Zuckerberg mentioned that monetization strategies will be considered only once the platform achieves a clear path to one billion users.
The existing advertising relationships derived from Instagram and Facebook are expected to bolster Threads’ revenue, according to Pinar Yildirim, an associate marketing professor at the Wharton School of the University of Pennsylvania.
“In comparison to Twitter, Facebook presents a less uncertain investment and holds a more substantial position in the advertising market,” she stated.
Some market analysts have drawn parallels between Threads and Meta’s earlier successful integration of key features from platforms like Snapchat and TikTok, as seen with Instagram’s Stories and Reels.
On Thursday, at least four brokerages increased their price targets on Meta, whose shares have more than doubled in value throughout the year. Despite these gains, Meta’s stock was down 0.3 percent during a broader market decline on Thursday, following a 3 percent increase the day prior, ahead of Threads’ launch.
The app is currently available in over 100 countries. However, Bloomberg News reported that it will not be launched in the European Union while Meta works on the regulatory framework for data sharing between Threads and Instagram.
© Thomson Reuters 2023
