Meta opens Threads to advertisers globally

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(Reuters) -Meta Platforms said on Wednesday it is expanding advertising on its social network Threads to all eligible advertisers globally, as it looks to generate new revenue streams amid brand uncertainty over tariffs.

Launched in July 2023, the Threads app was positioned as a challenger to Elon Musk-owned X, in a bid to win users from the de facto micro-blogging site amid its chaotic takeover by the billionaire entrepreneur.

Meta, one of the world’s largest social media companies, derives most of its revenue from advertising, which funds its multibillion-dollar investment in artificial intelligence infrastructure as it competes to lead in emerging generative AI technology.

However, the deepening trade war between the U.S. and China poses a threat to ad revenue, as marketers seek stability before committing solid budgets. Despite this, some analysts believe that Google and Meta would be the last to experience ad spending cuts.

MoffettNathanson analysts warned on Tuesday that Meta’s online advertising business is at a risk of taking a $7 billion hit this year due to escalating trade tensions, as China e-retailers could pull back spending.

Nevertheless, a growing user base on Threads—exceeding 320 million monthly users—and uncertainty surrounding a potential TikTok ban in the U.S. could bolster Meta’s ability to attract advertisers.

The company, which started test launching ads on Threads with select brands in the U.S. and Japan earlier this year, said the ads will be delivered in select markets at launch, before rolling out to additional markets.

Meta is scheduled to report first quarter results on April 30.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)