Media Monday

Meta’s Threads Takes a Turn: Introducing Paid Ads Amidst Declining Usage

By: Noelle Khan, Digital Media Planner

Meta announced plans to introduce paid advertising on Threads, its text-based social media platform that launched in July 2023. According to The Verge, a Meta spokesperson stated that they do not expect Threads to become a “meaningful driver” of revenue in 2025. However, they view the introduction of sponsored ads as a crucial step to grow the platform and maintain its free status for both existing and new users. This announcement comes amid reports of declining user engagement since its launch. An analysis by Sensor Tower in 2024 indicated that users interact with Threads far less frequently than they do on competitors like X and other popular platforms. The Washington Post noted that Threads has attracted only 175 million monthly users, a stark contrast to Instagram's two billion. Furthermore, it has faced challenges in attracting content creators and generating trends and conversations similar to those on TikTok and X.

Despite these hurdles, Threads is pivoting towards monetization with plans for paid ads set to launch in 2025. This strategy aims to enhance the platform’s growth potential as it strives to build a more stable user base and carve out its identity in a competitive social media landscape. The success of this approach remains to be seen as Threads continues to navigate the challenges involved in driving consumer value and engagement.??

Gen Z is Spotify’s 2024 Top Trend Setter

By: Jillian Lucero, Media Resources Coordinator

Spotify’s Yearly Wrap of Music is one of the biggest cultural moments for the platform, and gives its users an opportunity to reflect on their listening habits, discuss trends and connect with other users. Spotify’s 2024 Wrapped Report for advertisers highlights key trends in platform usage while offering insights into user behavior.?

The primary focus of this year's report -- the significant increase in usage and engagement across Gen Z users. According to Spotify, Gen Z now makes up over 50% of the app’s consumer base, more than 251M users globally. The report also cites that Gen Z users "crave connection" and spend over 2.2 hours/day within the platform.

Other key takeaways include:?

• A 55% lift in video impressions - which also drove a significant increase in ad visibility and availability. For Spotify advertisers focusing on video content, this lift in viewership also meant an increase in engagement of roughly 59%, an 89% lift in click-through rates, and over 30% lift in conversation rates across industry verticals.
• Campaigns using the "audio and video takeover" drove a 55% increase in purchase intent compared to audio-only campaigns.
• Gen Z users are streaming across multiple devices. Mobile device usage still dominated, but there was a noticeable increase in usage across SmartTVs, Speakers, and gaming consoles. Gen Zers were also 118% more likely to stream on a gaming console when compared to Millennials.?
• Live streaming support and engagement continues to grow, but data also showed that over 74% of Spotify's Gen Z listeners opted to attend live experiences in person in 2024, making the platform an ideal place for live entertainment marketers and advertisers.??
• Personalized content is king. With a 53% increase in personalized playlist streams this year, its safe to say that a focus on individualized ad content will likely be a focus in 2025.?

In the new year, Spotify will continue to be Gen Z's "go-to companion," offering advertisers fresh and impactful opportunities to engage with the platform's most active users.

To read more, check out Spotify’s Culture, Next & US 2024 Advertising Wrapped Report.