Threads unraveled: banking on social media's fastest rise yet – who's winning the money game?
X vs. Threads, who will be the winner?
The realms of social media are no stranger to rapid user acquisition, but the recent launch of Threads, a new platform developed by Meta, the parent company of Facebook, Instagram and WhatsApp, has set a record for the fastest-growing app in history. Within just five days of its July launch, Threads gained an astonishing 100 million users, leaving even TikTok in the dust.
This new platform has attracted a diverse range of users, with influencers like MrBeast and Kim Kardashian alongside banks and fintech companies. Prominent financial institutions from both the United States and Europe, including Bank of America, Citibank, Barclays, Deutsche Bank, BBVA, Nationwide Building Society and Bank of Ireland, have enthusiastically embraced the platform as early adopters. Fintechs, like Revolut and Wise, have also jumped on board, seeing it as an opportunity to engage with customers wherever they are.
Credit unions, especially American ones, are likewise surfing the Threads tsunami[LG1] , not only establishing a presence but also actively engaging on the platform. Notable among them are Greater Nevada Credit Union, Academy Bank and Altra Federal Credit Union. These institutions have effectively harnessed the platform's features to connect with their desired audience, sharing diverse financial advice, product offers, awareness alerts and community-centric content.
What is Threads and how does it work?
Threads presents itself as a friendly public space for conversation, emphasizing its commitment to creating an inviting atmosphere for users. Unlike some other social media platforms that have faced user disengagement and backlash due to various issues, Threads has positioned itself as a fresh alternative. This comes at a time when Twitter, one of the dominant players in the social media landscape, has seen its user base grow disenchanted following changes in leadership and the platform's user experience.
Meta is leveraging the success of Instagram, which boasts over two billion active users globally, to propel Threads' growth. Users can sign up for Threads using their existing Instagram accounts, maintaining their usernames, passwords and account names. Moreover, this integration permits users to import their Instagram follow list and follow the same accounts on Threads automatically after their Threads accounts are set up.
However, there are concerns regarding privacy and data collection. Threads collects various types of user data, including location, contacts, search history and browsing history. With Meta's already extensive data collection practices across its social media platforms, some users have raised worries about the potential accumulation of personal data.
Comparing Threads and Twitter for income generation
As Threads gains momentum and establishes itself as a platform for various users, including financial institutions, the question arises: What opportunities does Threads offer for income generation compared to established platforms like Twitter?
Threads, with its focus on a more intimate and private experience, allows for longer posts and carousel-style posts, enabling businesses to share more content within a single thread. It also offers the advantage of private messaging, allowing direct communication between businesses and potential clients.
On the other hand, Twitter boasts a larger user base and more search functionality. With its established monetization ecosystem, Twitter offers income generation through sponsored posts, brand collaborations and revenue-sharing programs for content creators. This advantage has led some experts to state that, at present, Twitter offers more opportunities for income generation than Threads.
However, Threads' rapid growth and the promise of future advertising features could potentially level the playing field in the future. As Meta continues to explore integrating advertising features into Threads, businesses might find new avenues for monetization on the platform.
In this rapidly evolving landscape, both Threads and Twitter offer unique opportunities based on individual preferences and strategies. While Twitter currently provides more established avenues for income, Threads' potential for future profitability cannot be ignored. As both platforms continue to evolve and innovate, creators and businesses may find themselves presented with increasingly diverse options to generate income and engage their audiences.
In the end, the competition between Threads and Twitter is not just a battle for users' attention but also a race to provide the most valuable and effective income generation options for content creators and businesses alike.
Leverage community expertise to redefine finance
Our communities cover diverse topics such as digital transformation, SME finance, or Embedded insurance, providing a platform to learn from industry experts and peers.