Meta, formerly known as Facebook, launched Threads, Instagram’s text-based conversation app, last week Wednesday, July 5. The application, designed to rival Elon Musk’s Twitter, recorded more than 30 million sign-ups on its first day. Currently at over 100 million sign-ups, the app has surpassed ChatGPT, thereby becoming the fastest-growing consumer application.
Business analysts have begun to do a forecast of the app’s growth towards being a strong competitor to Twitter. In a report by Bloomberg, Evercore ISI business analysts led by Mark Mahaney estimated that Threads will reach close to 200 million daily users and make around $8 billion in annual revenue over the next two years.
Mahaney, in an interview with CNBC Television said the application is an “easy extension” as it requires users to have an Instagram account in order to sign up, thus providing a means of bringing the user base on Instagram to the new app. This, according to Gary Vaynerchuck, CEO of VaynerMedia, a creative and media agency, is an advantage the new app currently possesses.
Currently, the application permits no ads. However, in a report by Axios, the application may soon allow some changes in this regard. A source told Axios that Instagram is planning to bring its branded content tools to Threads. This would enable marketers to start experimenting with paid promotion, pending the availability of advertising. Branded content is produced by a publisher or creator for payment by a business partner, where the partner influences the content or is featured in it.
Meta CEO, Mark Zuckerberg, in a post on his official Thread handle, said “our approach will be the same as all our other products. Make the products work well first, then see if we can get it on a clear path to 1 billion people and only then think about monetization at that point.”