Meta Has a Lot of Opportunity and Underappreciated Risk With Threads

Where does Instagram stop and Threads start?

The Short Version

Outstanding development. Threads hit 100 million users within a week.
Distraction is a possibility. The proliferation of Threads may dilute Meta’s primary applications.
Possibility of employment. Threads could benefit from ex-Twitter talent.
Mark Zuckerberg provided frequent updates. Threads, his Twitter clone, has 2 million users within two hours after its Wednesday launch. Then, within seven hours, ten million. Then 30 million the next morning. “Feels like the beginning of something special,” Zuckerberg posted. Elon Musk has vowed to sue by Thursday afternoon. Now, Threads has 100 million users.

Threads looks to be here to stay, with a rapidly growing user base and backing from its parent firm. While Meta has potential, its rise is not without danger. In its drive for cultural significance and more money, Meta has exposed itself to distraction in its battle with TikTok. Threads may potentially dilute the network benefits of its primary apps.

As Meta’s hot new Twitter clone enters its second week, examine the following four opportunities and two risks:

Twitter has long struggled to increase money since its ad system lagged behind those of its competitors. Meta’s ad targeting and optimization capabilities are world-class, and they may make a difference in a product similar to Twitter. For reference, Meta made roughly $40 per user last year, whereas Snapchat made $12.98 with identical services. Twitter’s greatest year was 2021 when it earned slightly more than $5 billion. Threads might perform much better with the help of Meta’s ad platform.

Use the Reels Algorithm to Create a Better Twitter.

When Meta cloned TikTok, it invested much in its Reels algorithm. It needs a recommendation system more sophisticated than the News feeds to show you the greatest videos from throughout its network, not simply postings from your friends. Its efforts have already spilled over to Threads, where algorithms arrange the feed and there is no “following” option. Meta is making a point by going all-in on “For You” from the start. It claims its algorithm is better than you at selecting things you would enjoy, and it uses Instagram’s follow graph as a signal. Meta’s algorithmic feed would function well on a Twitter-like network where new and casual users don’t see the value in developing follow graphs from their followers.


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