Meta Escalates War with X, Rolls Out Threads Monetization
Meta is making a major play to poach creators from X, rolling out a full monetization framework for Threads. The new options include ad revenue sharing, sponsored content, affiliate marketing, and subscriber-only features. Analysts see this as Meta's latest attempt to deal a 'final blow' to its rival by luring away its economic engine: the creators.
This monetization push targets a rapidly growing user base. As of January 2026, Threads surpassed X in global daily active mobile users, with 141.5 million compared to X's 125 million. However, X maintains a significant lead in daily web visitors, attracting an estimated 145.4 million to its site versus just 8.5 million for Threads. Meta has established specific thresholds for its new program. To qualify for monetization, creators on Threads generally need a minimum of 10,000 followers and must demonstrate a consistent engagement rate of at least 3-5% on recent posts. The program is initially rolling out in the United States, United Kingdom, Canada, Australia, and select European markets. The financial incentive for creators is part of a direct strategy to weaken X, which has seen its own ad revenue decline significantly since Elon Musk's takeover. In 2023, X's global advertising revenue fell by an estimated 51.7% from the previous two years as advertisers grew concerned over content moderation changes. Meta's head of Instagram, Adam Mosseri, has stated a desire to roll out ads on Threads "sooner rather than later" to capitalize on this opening. This battle is for a significant prize: the creator economy was valued at approximately $250 billion in 2024 and is projected by Goldman Sachs to nearly double to almost $500 billion by 2027. This rapid expansion is fueled by brands increasingly investing in creator-led marketing over traditional advertising. The rivalry extends beyond monetization and into platform features. In a move to address content moderation, Meta announced it would adopt a system similar to X's, even using its rival's open-source algorithm as a foundation for its own "Community Notes" feature on Threads, Facebook, and Instagram. Meta's move follows a long-established playbook of first building a large audience before introducing monetization, a strategy seen with its other products. Analysts view the activation of Threads' revenue engine as a major potential catalyst for Meta's stock, with some projecting long-term revenue in the tens of billions.
