It is believed that Threads will reach close to 200 million daily active users and generate about $8 billion in annual revenue over next two years, Evercore ISI analysts led by Mark Mahaney estimate (Bloomberg).
To be sure , Threads is more of a text-based platform, wherein one can write their feelings or thoughts. It further allows users to put up photos and videos. Many believe that with Twitter’s tightening rules which might have had an impact on brands, this perhaps be the perfect gateway. “Brands will need to ensure they comply with the evolving rules and guidelines to maintain their presence on the platform. If Threads gains traction and attracts a significant user base, brands will likely incorporate it into their media plans to reach a new audience and explore the potential for innovative social media strategies,” Hayden Scott, creative head APAC, Virtue Worldwide – The Agency Powered by VICE explained.
Meanwhile, Meta – the parent company of Facebook, Instagram and Threads declared that revenue increased three percent year-over-year to $28.6 billion, for the quarter ending March, 31,2023. Furthermore more net income was down 24% to $5.7 billion while EPS fell 19% to $2.20 compared to last year. The company further stated that, “In the first quarter of 2023, ad impressions delivered across our Family of Apps increased by 26% year-over-year and the average price per ad decreased by 17% year-over-year.”
Interestingly, the launch of the new product seems to have already set the influencer community abuzz. As of 2022, the influencer marketing industry in India was valued at over Rs 1,200 crore, as per market research firm Statista. The sector is expected to grow at a compound annual growth rate of 25% over the next five years to Rs 2,800 crore by 2026. Nearly 55 million urban Indians were direct consumers of influencers of various kinds as of 2022. For influencers Threads is a tool to reach out to consumers. “As Threads gains popularity among younger generations and influencers, brands are likely to adapt their advertising strategies to capitalise on this platform’s features and user base. The ability to engage with a different demographic may open new avenues for brands to connect with their consumers and create more targeted campaigns,” Chef Sanjyot Keer, digital content creator and founder of Your Food Lab, explained.
Data from Statista suggests that the influencer marketing industry has witnessed widespread adoption across sectors, with the personal care vertical leading with a 25% market share in 2022, followed by other key sectors such as food, fashion, jewellery, and mobile or electronics.
Industry experts opine that perhaps meme would once again find a place on social with Threads as its largely a text-based platform. Swiggy’s ‘Doodh mangoge, doodh denge’, Brand Factory’s ‘Hello Fraands, Shopping Karlo’, among others are some of the popular memes. “Memers often rely on witty text and captions to convey their humour. With Threads offering a primarily text-based environment, memers can leverage this platform to showcase their creativity and engage with a wider audience. This may also mean, many of us might shift our gears and use memes to effectively communicate or connect with our audience,” Chef Keer added.
Even as the industry is positive when it comes to the success of Threads, there are some experts who believe it’s too early to declare it a winner.“It’s too early to say without knowing what their monetisation strategy will be. But given that Meta is now a one stop shop for multiple platforms, there will be some advantages for the brands. This might place Threads at an advantage over other similar platforms,” Oindrila Roy, managing director, Publicis Worldwide, said.
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