“We expect the introduction of ads on Threads will be gradual and don’t anticipate it being a meaningful driver of overall impression or revenue growth in 2025.”

In context

“their interests and preferences. Now to the second driver of our revenue performance: increasing monetization efficiency. The first part of this work is optimizing the level of ads within organic engagement. We continue to grow supply on lower monetizing surfaces, like video, while optimizing ad supply on each of our surfaces to deliver ads at the time and place they will be most relevant to people. For example, we are continuing to better personalize when ads show up, including the optimal locations in the depth of someone’s feed, to introduce ad supply when it’s most optimal for the user and revenue. This is enabling efficient supply growth. Longer term, we also see impression growth opportunities on unmonetized surfaces like Threads, which we are beginning to test ads on this quarter. We expect the introduction of ads on Threads will be gradual and don’t anticipate it being a meaningful driver of overall impression or revenue growth in 2025. The second part of increasing monetization efficiency is improving marketing performance. The ongoing enhancements to our ads ranking systems are an important driver of this work. In the second-half of 2024, we introduced an innovative new machine learning system in partnership with Nvidia, called Andromeda. This more efficient system enabled a 10,000 times increase in the complexity of models we use for ads retrieval, which is the part of the ranking process where we narrow down a pool of tens of millions of ads to the few thousand we consider showing someone. The increase in model complexity is enabling us to run far more sophisticated prediction models to better personalize, which ads we show someone. This has driven an 8% increase in the quality of ads that people see on objectives we”