Meta, the parent company of Facebook, has fired a shot at Elon Musk with the launch of Threads, a new platform that aims to compete with Twitter. The move has caught the attention of investors, who see the potential for Threads to attract users and advertisers away from Twitter, which has been struggling to revive its business under new leadership.
Threads: A Standalone App with Instagram Integration
Threads is being launched as a standalone app but will be closely integrated with Instagram, a popular social media platform owned by Meta. Users will be able to log in to Threads using their Instagram credentials and follow the same accounts they already do on the photo-sharing app. This seamless integration with Instagram’s existing user base of over 2 billion monthly active users could give Threads a significant advantage over Twitter.
“Investors can’t help but be a little excited about the prospect that Meta really has a ‘Twitter-Killer’ poised to launch on the app store,” said Danni Hewson, head of financial analysis at investment platform firm AJ Bell.
Meta’s stocks closed up 3% on Wednesday, outperforming its tech competitors despite a slightly down market.
A Timely Blow to Elon Musk’s Twitter
The launch of Threads comes at a good time for Meta, as Elon Musk’s decision-making at Twitter has caused turmoil within the company. Over the past few months, Twitter has faced challenges, including a decline in value, an exodus of advertisers, and controversies surrounding content moderation. Musk acquired Twitter for $44 billion last October but has struggled to turn it around.
Matt Navarra, a social media consultant with experience at Meta, Google, and Pinterest, believes that Meta’s timing couldn’t be better.
He said, “Musk’s chaotic decision-making has roiled Twitter, making it an opportune moment for Meta to strike with Threads.”
Threads as a Brand-Safe Advertising Platform
While Meta is expected to prioritize user growth initially, there is potential for big brands to invest in advertising on Threads. The platform is anticipated to offer a more brand-safe environment than Twitter, which has faced criticism for its content moderation issues. Ryan Detert, CEO of influencer marketing company Influential, predicts early buzz around Threads will attract advertisers looking to capitalize on the platform’s appeal.
Meta has been actively reaching out to social media influencers to attract users and build momentum for Threads. Ryan Detert mentioned that Meta had encouraged influencers to post on the new app at least twice daily. This strategy aims to generate interest and engage users from the start.
Overcoming the Competition
While Meta’s Threads enters the market as a potential Twitter competitor, it benefits from the failures of other platforms that attempted to challenge Twitter’s dominance. Mastodon, Post, and T2 have all tried to attract Twitter users but have struggled to gain significant traction. Even Bluesky, a service backed by Twitter co-founder Jack Dorsey, has only achieved 50,000 users despite generating buzz during its invite-only beta launch.
However, Meta does face challenges based on its past experiences. The company has encountered difficulties with launching standalone copycat apps, notably its failed attempt to compete with TikTok through the Lasso app. Meta has since shifted its focus to integrating short video tools directly into Instagram and scaling back experimental app development to optimize resources.
Instagram’s Visual Culture vs. Twitter’s News Orientation
Jasmine Enberg, a principal analyst at Insider Intelligence, points out that there is a fundamental difference between the news-oriented culture of Twitter and the more visually focused nature of Instagram. She believes that Twitter’s most loyal users, who rely on the platform for news and real-time events, will unlikely immediately switch to Threads.
Enberg states, “The main use cases for Twitter still remain keeping up with news and world events. I find it hard to imagine that the most avid loyal Twitter users who go to Twitter for that type of culture will defect and go immediately to Threads.”
Despite this challenge, Enberg highlights that Meta doesn’t need to convert Twitter power users into Threads users to succeed. Even if Meta convinces just a quarter of Instagram’s massive user base to join Threads, it would be enough to rival the size of Twitter’s user community.
The launch of Threads signifies Meta’s determination to take on the social media landscape, with Mark Zuckerberg directly challenging Elon Musk’s presence in the tech industry. As the rivalry between the two billionaires continues to unfold, the battle for users and advertising dollars will shape the future of social media platforms.
