Meta (META.US) will fully launch advertisements on Threads starting next week, and analysts are optimistic about its potential as a new growth engine.

Facebook and Instagram's parent company Meta (META.US) announced on Wednesday that it will start serving ads on its ThreadsWeibo Corp. Sponsored ADR Class A service to all users globally starting next week. Wall Street analysts expect that with Meta's commercializing of the Threads platform, this feature will become an important source of revenue for the company. The company will release its fourth-quarter financial report next week. In a blog post, the company wrote, "By advertising on Threads, businesses can truly engage in this conversation, while finding new ways to connect with the people most interested in their business." Meta stated that the full rollout will be "gradual" and may take several months to complete. The social media company first tested the advertising feature on Threads among users in the United States and Japan in January of last year. Since its launch in July 2023, Threads has been a direct competitor to X (formerly Twitter) owned by Elon Musk. Meta CEO Mark Zuckerberg stated in August that Threads has amassed over 400 million monthly active users globally. Earlier this month, TechCrunch reported that according to Similarweb data, Threads has attracted more daily active mobile users globally than X. Meta stated that it plans to continue bringing new features to Threads, including new ad formats and third-party verification services already available on Facebook and Instagram.