(Reuters) – Meta Platforms plans to introduce ads on its Threads social media app early next year, the Information newspaper reported on Wednesday, citing three people with direct knowledge of the plans.

The Threads app was launched in July last year to compete with X, formerly Twitter, in a bid to capture users of the de facto micro-blogging site during its chaotic takeover by billionaire Elon Musk.

The app has reached 275 million monthly active users, Meta CEO Mark Zuckerberg said last month, a sign of its rapid growth.

Threads plans to allow a small number of advertisers to create and publish ads on the app starting in January, according to the report.

A team within Instagram’s advertising division is leading the initiative, the report said.

Meanwhile, Meta doesn’t expect Threads to be “a significant driver of revenue in 2025,” Chief Financial Officer Susan Li said on a post-results conference call in October.

She also said that the company plans to introduce more features on the app.

“As our priority is first and foremost to create value for the consumer, there are currently no advertising or monetization features on Threads,” a Meta spokesperson said in an email response.

Threads could attract X advertisers at a time when the platform has undergone a sea change under Musk.

In August, Musk’s

X’s ad revenue fell for months after Musk bought the company in 2022. Some advertisers were wary of ad spending under Musk, amid questions and fears that their brands would appear alongside harmful content that would otherwise have been removed under previous owners.

(Reporting by Jaspreet Singh in Bangalore; editing by Alan Barona)