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Will Meta’s Threads App Hold Space for E-Commerce?
Within the first 24 hours of its launch, Meta’s Threads app surpassed 30 million sign-ups, and as of July 10, it already has over 100 million registered users.
Meta, the parent company of Facebook and Instagram, is calling Threads a “text-based conversation app” and hopes to tempt users who have left Twitter since Elon Musk took over. Musk’s recent limitation of how many tweets users can see per day may lead even more people to switch over to the new platform.
This Twitter rival officially launched on July 5, and it has amassed a wide audience already thanks in part to its simple integration with Instagram. Users can easily connect their Threads account to their Instagram account, which allows them to share their Threads posts on Instagram Stories.
But what about retailers and brands? How can they use Threads to help their businesses grow?
Meta has not yet announced any specific plans for e-commerce on Threads. However, this Instagram integration could make it easier for businesses to use Threads for retailing purposes. Social media is already crucial for reaching a brand’s customers, so Threads will likely fall right into place beside similar platforms.
“While there’s not a direct ad placement feature or paid offering on Threads at the moment, it doesn’t mean that brands and agencies should overlook the importance of engaging with the platform’s users,” said Mathieu Champigny, Group CEO at CoCreativ. “Instead of focusing solely on traditional advertising, it’s crucial to prioritize community building by fostering meaningful conversations with your audience.”
There are many ways businesses can use Threads to connect with their customers. For instance, they could share product announcements, discounts, or behind-the-scenes content with their followers.
Brands can also use Threads to answer questions and collect feedback that they can use to improve their products or services and develop new marketing campaigns.
Since users can add links, photos, and videos to their posts, businesses could easily advertise their products or announce an upcoming sale. They could also run contests and giveaways to generate engagement around their brands.
According to Forbes, “Nine out of the top 10 retailers (according to National Retail Federation) have all activated their accounts on Threads with Costco being the only exception.” This is a good sign, though many companies are still being cautious, and brands are likely waiting to see how Threads shapes up before making any big moves.
For businesses hoping to monetize through ads, the good news is that Meta has a strong advertising backbone that they use to connect with people across the customer lifecycle, according to Forrester, so it’s only a matter of time before Threads starts advertising like Meta’s other social media apps.
Only time will tell whether Threads will become a major player in the e-commerce space. However, the app’s integration with Instagram, its focus on personal connection, and Meta’s history of successfully advertising on social media give Threads the potential to be a valuable tool for businesses.
Discussion Questions
DISCUSSION QUESTIONS: Do you think Threads has the potential to become a major player in the e-commerce space? How can retailers and businesses leverage this potential?
Poll
Loading …BrainTrust
Acquiring 100 Million users in a week is a pretty good start! Absolutely Threads has the potential to become a major e-commerce player, and these early results are proof positive. The fact that nine out of ten top retailers have already opened a Threads account is telling. Like Twitter, this platform offers much of the same experience, but without the angst and politics that Twitter has become.
Threads is growing exponentially quickly thanks to the installed base of Instagram users, and it seems very welcoming to brands.
But I’m not sure how powerful it will be for e-commerce. Instagram pioneered one of the most interesting and effective ad formats for e-commerce, but that full-screen visual format may be disruptive to the Threads user experience.
Still, with the targeting data Meta has, I’m probably underestimating them.
I think Mr. Musk is giving us a masterclass in the role that arrogance and belligerence can play in managing a business. Gotta give him credit for what he has accomplished with Tesla and Space X, but his takeover of Twitter was pure, raw ego. And now we are getting another masterclass in exploiting the mistakes and vulnerabilities of our competition. This movie is far from over, but to say that Threads has opportunities in advertising and e-commerce would be a significant understatement.
It would be interesting to learn how many Threads users are also new to Instagram too. Either way, both apps have plenty of opportunity for monetization — which Instagram users already know.
In the short run, Threads may decide to pass up e-commerce opportunity while it finds its voice, but over the long haul this is likely to change.
Mark Zuckerberg needs to find new revenue streams to offset stalling growth in his other offerings and his big investments in the metaverse. There is no doubt he will find a way to offer ecommerce opportunities on Threads. It’s a no brainer.
Meta is pretty good about releasing API documentation so retailers should have their tech teams watch that space. And already there are devs posting ways to interact with Threads data on github – but organizations should wait for the official documentation so they don’t risk violating the rules.
So, Threads has 100 million registered users. To me, that is a mind-boggling number in such a short time.
More importantly, it tells me that users seek something better than Twitter. Since I am not a user of either, I don’t know what that could be. Time will tell. Zuckerberg says, “It is a work in progress.” I’d recommend that Mark hold off on commercializing the app as long as possible, at the risk of chasing new users away.
There are other new ones out there. https://www.visualcapitalist.com/meet-the-competing-apps-battling-for-twitters-market-share/ What does that say about the space?
The initial growth has been impressive, but it is mostly driven by the enormous user base from Instagram. Only time will tell whether Threads has longevity and whether retailers want to use it as yet another channel to sell things. For the moment, it would be wise for Threads to focus on optimizing the platform rather than adding lots of e-commerce bells and whistles.
Great description…”yet another channel to sell things.” Do shoppers need it?
Is Threads winning as a new and innovative capability offering improvements over the current players, or is it just being sucked in by the vacuum that is Twitter falling apart? While Twitter rebuilds it’s business model (if it can) the lessons Retailers who reposition themselves have largely learned is that it’s faster to lose current customers than it is to attract new ones. When you go with a different model, your customers don’t always go with you. Threads is well positioned to become a major player in the space that Musk is abandoning.
It would be quite wise for retailers to hold back for a bit. Those massive “account” numbers are worldwide and remind me of Google+ where nearly anyone who searched using Google was suddenly considered a Google+ user.
There is no value in rushing in. At this point, it’s not clear whether the app has value for its users – much less for a commercial effort of any type.
I grabbed our company @ on Threads just in case we need it someday. Regardless of what’s going on with Mr. Musk right now I have confidence he will get Twitter worked out.
Threads is connecting to Instagram, but Instagram is used differently than Twitter. I would never post the same thing on Insta and Twitter. Or Threads. It’s a different vibe and audience. Ya’ll can have Threads. If you need me, I’ll still be on Twitter.
Threads has gained more than 100 million users in record time. Wow! That’s faster than ChatGPT. Will Threads become a “major player” in the e-commerce space? Will they even last? Clubhouse had a fast start, but has since fizzled. other online/social platforms have experienced the same. Threads has the advantage of its siblings, Facebook and Instagram. Just as those platforms feature e-commerce, so will Threads.
How do we define “player” (or to keep the syntax consistent, “playing“)? Certainly it has the ability to communicate information ….just like the multitude of existing platforms. Btu maybe what’s meant is cluttering up posts with ads?? I’m sure there’s some ‘Law’ (tho I don’t know who it’s named after): the usefulness of a site is inversely proportional to how much someone (else) uses it for “commerce”.
It’s Meta so I absolutely think this will morph into an e-commerce play. Question is, how long until that happens and do they have the infrastructure ready to go (given how fast the platform growth exploded).
Social commerce is one of the fastest growing digital channels, with Accenture predicting it will grow three times as fast as traditional eCommerce. Social commerce has already proven to be a lucrative channel and an important component of unified commerce due to the sheer volume of users and their daily time on social media. Given the large audience already using Threads, it will likely serve as another online platform for brands to connect directly with customers and consumers to seek purchasing inspiration. What has yet to be seen are the capabilities Meta will develop to encourage brands to engage with it for eCommerce. Given Meta’s legacy, it’s safe to assume that advertising will be first.