Facebook Meta, cloned Twitter to launch its own micro-blogging platform Threads on July 5. This was met with unexpected enthusiasm. Today, Threads has over a 100 million users already, as the Instagram community for its sign-ups which gives it an advantage due to the massive two billion strong users that Instagram has. There’s another clever catch – to ensure their following doesn’t drop, Instagram users who have signed up for Threads can’t delete their Threads account without deleting their Instagram account. 

Riding on Instagram’s success

For advertisers, this means their communication gets the advantage of their content getting the opportunity to be seen at least twice, on Instagram and Threads. This can translate to cost-efficient advantage for brands and retailers, particularly those who are solely dependent on advertising in the popular social media sites. The question being asked is how advantageous is Threads in combination with the already established Instagram for brands and retailers and which categories benefit most? 

Surprisingly the big names who instantly jumped into Threads from day one were big international media companies like CNN, CNBC, ABC, Vogue, etc. Are they on an exploratory mode as each of these media giants has huge follower bases on Twitter? It turns out, a quick research has pointed out that Thread within its first week of being has already won the war against Twitter in terms of follower engagement. Threads is not only growing fast but also has an user engagement rate of 0.45 per cent over Twitter’s user engagement rate of 0.02 per cent. 

Are brands hesitant with Threads phenomenon?

Nothing is more attractive than a social media platform that’s flooding the world at an unbelievable rate and showing promising engagement rate for brands and retailers alike. Media and entertainment companies like Netflix and Amazon Prime have already started their Threads accounts. Sports leagues like the NFL and WWE are also on the app. McDonald’s has set up over two dozen accounts coordinating with the countries it operates in.  Of the top five most popular consumer brands (M&M, Band-Aid, Ziploc, Dawn, Reese’s, according to YouGov.com), only Reese’s has activated their Threads account. What’s holding these popular consumer brands back? Rihanna herself hasn’t activated her Threads account but her companies including Fenty Beauty, Savage X Fenty and Fenty Skin are. 

So what is keeping lifestyle and fashion brands from creating their account? Only Nike has stepped into the world of Threads. Gucci, Chanel, Prada, Burberry, Louis Vuitton, Fendi, Dolce & Gabbana, Saint Laurent, Ralph Lauren have stayed away so far. Is Threads being perceived with the same question mark over its image like TikTok a few years ago? However, the big retailers across the US with the exception of Costco, are already on Threads. Is it a more suited platform for retailers than brands? 

Many have joined Threads with good results

One reason so many big brands have been quick to leap on to Threads is because of its tight integration with another of Meta’s massive social networks, Instagram. Threads users can only sign in with an Instagram account, and when you do, you immediately have the option to follow all of the same accounts you follow on Instagram. Likewise, when users sign in for the first time, they’re prompted to follow any brands they already do on Insta. Consequently, companies with big Instagram followings can go from zero to millions of Threads followers in no time. Netflix US already has 1.7 million Threads followers. Nike has almost 500,000, ASOS over 200,000. All this over a day after the service was launched.

Understanding the reaction so far

It’s easy to see why companies are being cautious. Threads is a new and brands are undoubtedly waiting to see what Threads turns into before they commit to it. Even retailers already present on Threads are not posting a lot, waiting to see where consumers land. Walmart has three million followers on Instagram but less than 60,000 on Threads so far.

In fashion, it’s mostly American brands that are more active but not everyone has joined in. Besides Nike, major brands like Coach, Abercrombie, Calvin Klein and Michael Kors have activated their accounts but Tommy Hilfiger and Levi’s have not.

As a general rule, most brands and retailers want to be second, especially in technology. They want to see someone else jump in and succeed before they commit. The risk for them is that social media becomes even more political than it is already. There is a trend evolving where the medium defines your political views and now that’s extending to social media too. One member of Congress has already said they’re sure Threads is “a Marxist style social media experience” that will be used to “steal elections.”

The big question is what will happen to social media in the foreseeable future? Will Threads become a threat to Twitter and become the electronic public square they both aspire to be? Will Twitter become a right-wing medium and Threads a left-wing medium? Will Threads fail? No one knows but the uncertainty explains brands’ and retailers’ behavior so far.

If Threads is successful, brands and retailers have to be there. Since Threads is linked to Instagram, a handle can only be used the owner of the Instagram account. Brands may feel they’re not in a hurry to commit to it and are waiting to see how it shakes out. The worst outcome for brands/retailers is if Threads and Twitter go the opposite way politically then they’ll have to be on both media.

The best outcome is for outrage and vitriol to simmer down but that seems the least likeliest outcome. So far it looks like Threads has high potential to threaten Twitter’s market position and that may mean changes to brands’ and retailers’ marketing channels and strategies. Threads isn't just growing fast—its users are also more engaged than on Twitter.