Is Instagram Threads A Business Success Or Failure?

Instagram Threads: success or failure
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Meta CEO, Mark Zuckerberg had announced that more than half of Instagram Threads users don’t regularly use the app. This particular instance may make the Threads app look like a failure. This makes Instagram Threads, not the best platform for business networking.


As the only major X (formerly Twitter) competitor out there, Threads needs to step up its game.


In this article, we’ll discuss what Instagram Threads is, how it compares to X, and whether it is a business success or failure.


What is Instagram Threads?

Instagram Threads Logo

                                                                                     Instagram Threads Logo


Threads is like Instagram’s version of X (formerly Twitter).


It’s an app where you can share your thoughts in a series of posts, just like you tweet on X. You can also respond to other people’s threads and follow the profiles that catch your eye, which is similar to following users on X.


But what’s cool about Threads is that you’re not limited to just text. You can spice up your threads with links, photos, videos, or a mix of all these. This multimedia approach is reminiscent of X’s diverse media sharing.


And just like X, people can follow you on Threads, so they can keep up with your threads and replies in their feeds, which is like seeing tweets from users you follow on X.


In a nutshell, Threads is Instagram’s take on the bite-sized, multimedia sharing experience that X has made so popular.


How Did Threads Come To Be?

In October 2019, Instagram Threads debuted as a camera-first messaging app by Meta Platforms. Users could share updates and chat with close friends. Sadly, low usage led to its December 2021 discontinuation.

Come January 2023, Meta initiated, what was internally codenamed, “Project 92” – a new text-centric app.


Fast forward to July 5, 2023, and “Threads” was born, poised as a Twitter rival. It offered text posts, links, photos, videos, polls, threads, and replies.


Mark Zuckerberg’s vision for Threads was all about fostering genuine, authentic interactions in the social media landscape. It aimed to be a platform where people could engage in more meaningful conversations with loved ones.


While it’s still early days for Threads, Zuckerberg’s determination to challenge Twitter is evident, making Threads a significant contender in this social media showdown.


Instagram Threads vs X (formerly Twitter)

Threads vs X


In this section, we have compared both social media apps based on user interface, features, content discoverability, cost of use, and most importantly, privacy.


We have compared Threads and X in detail in our Threads vs X guide where we explain each of these five pointers. Check that out if you’d like to compare both apps in detail.


X outperforms Threads in two out of the five categories we’ve examined: features and content discovery. However, Threads has an edge in terms of cost since it’s entirely free to use. And the rest were a tie between the two.


It’s worth noting that Threads is relatively new, so its community is still developing. Assuming it mirrors Instagram’s community, it may carry similar tendencies, potentially making it as controversial as X, as indicated by Zuckerberg’s remarks.


Should Businesses Leverage Threads?

There’s no denying the fact that Instagram Threads has been majorly revamped to be an X (formerly Twitter) competitor. Threads vs X is a very popular battle on the internet, almost as popular as Elon Musk vs Mark Zuckerberg’s cage fight.


All jokes aside, should you join Threads a small business owner? Is Threads even a profitable option?


For now, absolutely yes!


Before we talk about the exact points because of which you should join Threads as a small business, let’s first see how popular it is.


Instagram Threads smashed records, hitting a whopping 100 million sign-ups in just 5 days after its launch. That’s faster than even OpenAI’s ChatGPT.


Number of Instagram Threads users over time

                                            Number of Instagram Threads users over time


So we can see that Threads users have been rising remarkably. As a new platform, you can always get a fresh audience to reach out to. However, Instagram Threads currently has very low engagement, as compared to X. This can be a downgrading factor.


Go through our business guide on whether you should leverage Threads, as we’ve explained not only why you should leverage the app, but


Plus Threads’ failure to expand has caused several other problems for business owners.


Threads’ Failure To Expand Globally

Threads quickly gained popularity, but it never made its way to the European Union (EU), missing out on potentially hundreds of millions of users there.


The main reason for this seems to be the EU’s strict data laws and the information Threads collects from its users. In the lead-up to its launch, some people were critical of Threads for its data collection practices.


Meta and its associated apps have been dealing with numerous legal battles and fines in the EU because of violations of the General Data Protection Regulation (GDPR). In July, the highest EU court ruled against Meta’s defense regarding its advertising practices, potentially giving EU authorities more power to investigate future GDPR breaches.


The future of Threads in Ireland and the EU is uncertain, as regulatory challenges are likely to persist for Meta. Upcoming EU regulations like the Digital Markets Act and the Digital Services Act will create new obstacles for companies like Meta.


EU Flag



And Threads Has Poor Engagement Too

Threads, that Twitter-like app made by Meta, has had a big decrease in its popularity. Right after it came out, it had lots of people using it – the most on July 7.


But now, the number of people using it daily has dropped by a whopping 70%. The big question is, does this drop mean Threads is on the same path as MySpace and Google+ – you know, those other social platforms that didn’t last?


My mind was blown when Forbes published a blog titled,  “Threads Engagement Drops 70%. Here’s How It Can Recover”. This is because the numbers in that report are shocking!


Instagram Threads Had An Explosive, But Misleading Launch

Threads had an amazing start, with a whopping 100 million people signing up in just the first week. This made it the fastest-growing app ever.


But here’s the catch: Threads got a big boost from its connection to Instagram, which has a massive user base of two billion people.


When a startup launches an app, they typically have to work hard to promote it and hope that users will spread the word. Getting even a million users is a big challenge and usually requires a great app, good press, and people sharing it like crazy. Threads had it easy in this regard because it didn’t face these usual obstacles. Its rapid growth, while impressive, was largely thanks to its Instagram roots.


The Gold-Rush Effect Caused Its Post-Launch Slump

When a new social app hits the scene, you’ll often see early adopters, influencers, and digital marketers jump in right away. They want to secure their preferred usernames and create at least a basic profile. This way, if the app becomes popular, they’re ready to join the action.


Now, thanks to the connection with Instagram, the username concern has become less of an issue.


However, building a presence remained crucial. I didn’t come across anyone in the digital marketing community saying, “I’ll wait and see if Threads becomes a hit before I bother setting up my profile.” Given the widespread popularity of Meta’s platforms, waiting just didn’t make sense. They were right there from day one.


What Caused This?

Naturally, when Threads launched, many early users signed up but didn’t do much with it. If they weren’t already super active on Instagram or Twitter, it was unlikely that Threads would suddenly turn them into social media enthusiasts.


So, once they set up their profile, they often went back to their usual routines.


Even users who were active on other social platforms often took a cautious approach with Threads. Spending time on Threads would mean less time for other tasks, whether related to social media or not.


In a nutshell, it’s not shocking that tens of millions of people signed up for Threads but didn’t stick around.


This doesn’t necessarily mean Thread is a terrible app or doomed to fail. Likewise, having a hundred million initial users doesn’t automatically make Threads a smashing success.


Conclusion: So What’s The Future Of Instagram Threads?

Graphic on Threads App

                    Graphic on Threads App


As we wrap up our discussion on Instagram Threads, it’s important to keep a few key points in mind.


First and foremost, Threads is still a relatively new player in the social media game. It’s not uncommon for fresh platforms to face initial hiccups and low engagement, and this doesn’t necessarily spell doom for the app.


Sure, Mark Zuckerberg’s announcement that over half of Threads users don’t use the app regularly may make it seem like a failure, especially in comparison to social media giants like X (formerly Twitter).


However, remember that Rome wasn’t built in a day, and the road to social media stardom can be a winding one. Threads may need time to grow and find its niche, just like many other now-popular platforms did.


While Threads’ low engagement may not make it the best choice for business networking right now, it’s essential to remain open to the possibilities the future holds. Instagram Threads is Zuckerberg’s response to the world of microblogging and bite-sized content. And his determination to challenge the likes of X is evident.


Let’s not forget that Threads had a significant head start, benefiting from its Instagram roots, which helped it gain a rapid influx of users. The app’s explosive start may have tapered off, but it’s not the first social media platform to experience such fluctuations.


So, as of now, Threads might not be the ideal platform for businesses, but the future remains uncertain.


As it continues to evolve, adapt, and gain user insights, who’s to say it won’t emerge as a notable contender in the social media landscape?


It may not be brilliant or doomed to fail just yet, and its success will ultimately depend on how it navigates the ever-changing social media world. Only time will tell if Threads can transform itself into a true player in the social media arena.


People Also Read:

Threads vs X (Formerly Twitter): All Features Compared.

This Is How Small Businesses Can Leverage Instagram Threads in 2024.

Marketing On Threads (by Instagram): All You Need To Know.

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