(Source: Reuters)

Meta Platforms (META.O) opens a new tab and plans to introduce ads on its Threads social media app early next year, The Information reported, 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 2025 revenue,” Chief Financial Officer Susan Li said during a post-earnings call in October.

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

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

In August, Musk’s income.

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.