Meta's Threads Struggles to Grow Amid Rivalry with X, Ranking Ahead of Only Tumblr
Meta's real-time messaging app, Threads, is facing challenges in attracting new users, resulting in a decline in popularity since its successful debut in July. According to Insider Intelligence's Threads forecast, the app now ranks near the bottom among popular social media platforms in the U.S., surpassing only Tumblr. The forecast predicts that Threads will have 23.7 million U.S. users in 2023, significantly behind competitors like Facebook, Instagram, and TikTok, which boast user bases of 177.9 million, 135.2 million, and 102.3 million, respectively. In comparison, Threads' closest rival, X, is projected to have 56.1 million U.S. users in 2023, indicating that Threads will have less than half the user base of the messaging app formerly known as Twitter.
Challenges and Declining Usage
The declining usage of Threads is supported by various third-party estimates from mobile analytics firms like Sensor Tower and Similarweb. While Threads initially gained popularity due to its easy sign-up process for existing Instagram users and its position as an alternative to X, it cannot solely rely on X defectors for continued growth. Analysts have noted that Threads needs to establish a unique identity beyond being an extension of Instagram or an alternative to X in order to thrive in the competitive social media market.
Monetization Potential and Future Prospects
The potential monetization of Threads could be influenced by Elon Musk's plans for X. If Musk proceeds with charging X users a monthly subscription fee, Meta may have an opportunity to monetize Threads and attract more users. However, Meta CEO Mark Zuckerberg has stated that the company has no immediate plans to monetize Threads until it achieves a larger and more established user base. To enhance its appeal, Meta has been introducing new features for Threads, including a desktop version and a search tool. Advertisers and creators have emphasized the need for additional features like analytics tools to make Threads a more robust platform worth investing in.
In summary, Meta's Threads faces growth challenges as it strives to differentiate itself in the social media market. With increasing competition and the need to establish a unique identity, the future success of Threads will depend on its ability to attract and retain users through innovative features and a compelling user experience.
Implications of Meta's Threads Growth Struggles for New Business Ventures
Meta's real-time messaging app, Threads, is grappling with challenges in user acquisition, which could have implications for new businesses venturing into the social media space. Threads currently ranks near the bottom among popular U.S. social media platforms, ahead of only Tumblr. The user base of Threads is projected to be 23.7 million in 2023, significantly behind industry giants like Facebook, Instagram, and TikTok. Threads' closest competitor, X, is expected to have more than double its user base by 2023.
Market Challenges and Opportunities
The decline in Threads' usage, as supported by third-party estimates, highlights the competitive nature of the social media market. While Threads initially gained users due to its easy sign-up process and position as an alternative to X, it's apparent that relying on defectors from other platforms is not a sustainable growth strategy. This insight could be valuable for new businesses, underscoring the need to establish a unique identity and value proposition in the market.
Monetization Prospects and Strategic Considerations
The potential monetization of Threads could be influenced by Elon Musk's plans for X. If Musk implements a monthly subscription fee for X, Meta could have an opportunity to monetize Threads and attract more users. However, Meta's strategy of delaying monetization until Threads is larger and more established could be a consideration for new businesses. They may need to balance short-term revenue generation with long-term user growth and retention.
Future Outlook and Business Strategy
The struggles of Meta's Threads highlight the importance of innovation and differentiation in the competitive social media market. For new businesses, the success of their ventures may depend on their ability to offer innovative features and a compelling user experience that sets them apart from established platforms. As the social media landscape continues to evolve, new businesses must remain agile and responsive to market trends and user preferences.