Meta tests ads on Threads, its alternative to X

Facebook parent Meta has begun testing ads on its newest social network Threads, an executive announced, as the company continues to grow its alternative to Elon Musk's X.

Launched in summer 2023, its debut came eight months after Musk's acquisition of Twitter -- now called X -- when changes like paid subscriptions and reduced content moderation were driving away users and advertisers.

The introduction of advertising on Threads was expected, given that Meta derives most of its revenue from ads across its free platforms.

"We're starting a small test for ads on Threads with a handful of brands in the U.S. and Japan," Instagram and Threads chief Adam Mosseri announced Friday.

He said his team would closely monitor feedback to ensure "they feel like Threads posts you'd find relevant and interesting."

The ads come as Meta is facing heightened scrutiny after CEO Mark Zuckerberg ended the company's U.S. fact-checking program -- a key tool in fighting online misinformation -- and relaxed content moderation rules to allow more controversial speech, similar to X's policies.

The decision was widely seen as an attempt to appease President Donald Trump, whose conservative support base has long complained that third-party fact-checking on tech platforms was a way to curtail free speech and censor right-wing content.

"The launch of Threads ads just weeks after Meta's content moderation makeover will raise advertiser eyebrows," Emarketer analyst Jasmine Enberg said, predicting negative reactions from users already skeptical of Meta.

"But the volatility at TikTok is spurring brands to seek alternatives, and Meta isn't going to pass up an opportunity to throw Threads into the mix."

TikTok, the popular China-based video sharing app, faces an uncertain future in the United States.

While a law banning the app took effect Jan. 19 -- over concerns the Chinese government could exploit it to spy on Americans or covertly influence U.S. public opinion -- Trump has suspended its implementation for two and a half months, seeking a solution with Beijing.

Meta claims Threads has 300 million monthly users, though these numbers face scrutiny.

Critics point out that Instagram users are frequently redirected to Threads without explicitly choosing to visit the platform, potentially inflating user statistics.