Unveiling the Untamed Potential of X: Threads Remains a Formidable Threat Despite Slowed Growth
Threads continues to challenge X despite its slowing growth, according to analysis by Insider Intelligence With Meta's declining popularity and X's reduced user growth, Threads is poised to narrow the gap and gain ground
Article Brief:
Meta's Threads appears to be losing its shine, even though it experienced a remarkable surge. An analysis conducted by Insider Intelligence, which was shared with Our Website, predicts that the platform will rank penultimate among social networks from 2021 to 2025, surpassing only Tumblr.
The X (formerly Twitter) lookalike is projected to reach 23.7 million users in the U.S. by the end of 2023, which is less than half of X's user base (56.1 million). Threads is anticipated to experience a 26.4% growth in its user base in 2024 and a further 13.1% growth in 2025, resulting in a total of 34 million users.
With Elon Musk as its owner, X is expected to decline, allowing Threads to narrow the gap in the upcoming years. However, for long-term success, Threads will need to establish a stronger point of differentiation, as advised by Insider Intelligence principal analyst Jasmine Enberg.
Article Insight:
Meta's Threads caused a sensation in the world of social networking when it was launched in July. It quickly amassed 100 million members, making it the fastest growing app ever. However, the initial surge in popularity was short-lived, and Meta now faces the challenge of differentiating its offering in a crowded market. Despite its early success, Threads is still a long way from reaching its full potential. Insider Intelligence reports that the app is projected to end the year with 23.7 million users in the United States, accounting for just 10.4% of social network users and 17.5% of Instagram users.
Although Threads is expected to experience slower growth, it is anticipated to narrow the gap with Elon Musk's X platform. The forecast suggests that X will see a decline in users, which could benefit Threads in catching up. Currently, X has 56.1 million users in the United States, but by 2025, that number is projected to decrease to 47 million due to user concerns regarding the platform's stability and content. Insider Intelligence has observed a series of criticisms of the platform since Musk took over. Furthermore, potential changes such as implementing a user subscription fee on X could result in even more users abandoning the platform. However, Threads should not rely on the uncertain shifts of X as a sustainable growth strategy.
According to the report, Threads initially received a boost from Twitter's mistakes, but it cannot depend on X defectors to fuel its ongoing growth. Nevertheless, Musk's recent announcement to charge all X users a monthly subscription fee could create a more viable opportunity for Meta to monetize Threads.
Threads has been working on several updates to ensure its relevance, including testing features that X (previously Twitter) refused to add for years, such as post editing, account switching, and profile deletion. The platform recently added additional desktop functionality to its new web version. These added features can support the growth of Threads and improve user engagement, which has been identified as a significant challenge by Instagram chief Adam Mosseri.
While Threads may catch up to X in the future, TikTok presents the strongest competition for Meta. According to a report, TikTok is projected to remain the third most popular social app, following Facebook and Instagram, until 2025. Known for its short-form video format, TikTok is particularly popular among the Generation Z demographic, leading competitors like Instagram and YouTube to create similar platforms. Enberg suggests that for Threads to effectively compete against TikTok, it would need to establish a more distinct identity.
Enberg stated in the report that in order for Threads to establish a lasting presence in the social world, it must quickly determine its future identity. It should not only be viewed as a mere extension of Instagram or a substitute for any existing service. Additionally, given Meta's tendency to abandon new applications or merge them with existing services, Threads must swiftly define its unique purpose.
