Within 24 hours of its launch, Mark Zuckerberg's alternative to Twitter, Threads, attracted around 30 million sign-ups, positioning itself as a potential rival in the social media landscape.

While this is still a fraction of Twitter's user base, industry analysts believe that Meta, Zuckerberg's company, has a good chance of luring some of its massive 3 billion-plus Facebook, Instagram, and WhatsApp users to the new platform, along with advertisers.

Zuckerberg, known for his success in selling advertisements, indicated that Threads would initially be ad-free to allow time for app optimization. However, analysts predict that in the long run, ads on Threads could contribute 1% to 5% of Meta's overall revenue, potentially generating over $6 billion in the most optimistic scenario, according to equity research analyst Justin Patterson.

This revenue boost could help Meta counter the impact of stricter privacy rules from Apple, which have affected its ad sales. Moreover, it places Meta in close competition with Twitter, which earned $4.5 billion in ad revenue in 2021, before Elon Musk's involvement disrupted the platform.

The success of Threads in generating revenue hinges on its future development. While Musk has threatened legal action against Meta for alleged theft of trade secrets, Twitter users' frustrations have fueled interest in an alternative. Meta's promise of a "saner, kinder place" has supercharged early sign-ups, attracting celebrities such as Sarah Jessica Parker, Shakira, Oprah, and Khloe Kardashian.

However, analysts caution that winning over Twitter's power users or individuals who have never used the app is not guaranteed. While fashion and lifestyle content, which dominates Instagram, appeals to advertisers, the necessity of another platform for consuming such content remains uncertain.

Zuckerberg's complicated relationship with news, a core aspect of Twitter, is another challenge. His surveys indicate users want less news on the platforms he oversees, and in Canada, his company plans to block local news rather than pay for content. Meta will need to keep Threads compelling to maintain momentum once the novelty wears off, as news enthusiasts and loyal Twitter users may not readily migrate.

Advertisers will also seek assurance that they are not exposed to risks related to misinformation and privacy. Under Musk's leadership, Twitter has alienated advertisers through sudden changes in content moderation and limits on post visibility. Meta has benefited from Twitter's loss of business but faces scrutiny due to its own controversies surrounding data transparency, user data handling, and misinformation.

Advertisers crave a clean and regulated environment, where content moderation aligns with agreed-upon terms and conditions. Currently, social media platforms face challenges in meeting these expectations. Photo by Anthony Quintano from Honolulu, HI, United States, Wikimedia commons.