After Elon Musk acquired X in 2022, users who were concerned about viral misinformation, hate speech, and antisemitism controversies on the platform began to look for alternatives. In addition to Meta Threads, Bluesky has become a popular option. In recent weeks, the platform – founded by Jack Dorsey, creator of the formerly-named Twitter, in 2019 as a research initiative and then an independent company in 2021 – has seen impressive growth, surpassing 15 million users in November, with popularity spikes following major events such as the U.S. presidential election.
Unlike X, which maintains a traditional centralized approach in which one company controls all aspects of the platform, from content moderation to feature development, Bluesky is a decentralized platform. Instead of storing or controlling data on servers owned by companies such as Meta or Google, the social network allows users to host their own data or select servers that suit their preferences. And while X’s interface prioritizes engagement through its “For You” feed and trending topics, content on Bluesky spreads through genuine participation and positive reception, with no browsing pages or promotion of posts. The platform allows users to create custom feeds based on specific hashtags, follow various topics across servers and even develop their own algorithms.
Although it currently operates without advertising, focusing instead on sustainable development through grants and other options such as subscriptions, the platform represents a good opportunity for brands and advertisers, Coby Shuman, managing director of We Are Social tells MiC.
“Bluesky could be a promising opportunity for brands here in Canada (global or local), especially with its user base that includes early adopters and tech enthusiasts who may be a good fit. Currently, the platform promotes more informative content and news with less clutter compared to Meta platforms,” Shuman says. “By establishing a presence early, brands could gain a first-mover advantage and position themselves as a thought leader and even culturally ahead of the curve.”
According to Shuman, the platform’s community-driven nature provides an opportunity for genuine and meaningful interactions with users. And its decentralized set up fosters niche communities, which is perfect for targeting. “Associating with a platform that values privacy could positively align with brand image, as the platform’s promise is to act as a safer, more controlled environment than the chaotic conversation that continues to unravel on X,” he adds.
However, Bluesky is still in development, and the opportunity remains limited due to lack of audience scale. “As a new platform, Bluesky lacks the more advanced features for ad products, business verification, and analytics we’ve seen on Meta and TikTok. If Bluesky faces issues or hacks related to decentralisation it could lead to reputational issues for brands in Canada,” Shuman says.
“We aren’t confident enough on Bluesky today to begin creating content on behalf of our clients, but we are monitoring this weekly and suggest establishing a presence on the platform by snapping up account handles just in case it does eventually reach a more mass scale,” he adds.
Julie Nguyen Minh, VP of investment lead at Spark Foundry, says Bluesky is exploring monetization strategies that avoid traditional ad-based revenue models. In addition to subscriptions with premium tiers, she says that funding and algorithm marketplaces (where individuals or organizations can exchange resources, such as financial support or algorithms, as part of a digital economy) are among the options that can help ensure long-term sustainability, while maintaining alignment with its mission to prioritize user autonomy.
“We are monitoring Bluesky user adoption growth in Canada, in case future opportunities become available,” Minh says. “We have to consider if establishing an early organic presence aligns with brand goals. When posting content, clients have to align with Bluesky’s values on transparency, privacy and community-building to resonate with the audience.”
Fil Lourenco, VP of platforms and commerce at Dentsu Media, says it’s still too early to tell whether Bluesky’s growth is sustainable and whether it will maintain frequent usage after sign-up. “Research has shown that consumers are ‘subscription fatigued’ and we anticipate the eventual adoption of in-app advertising to supplement revenue growth, as well as add more value to the subscription model to opt out of advertising,” Lourenco notes.
The eventual adoption of advertising is an opportunity for advertisers. Bluesky can be an interesting space for brands to diversify their social presence and connect directly with consumers in the environments where they are most comfortable or connected, according to Lourenco.
“Brand safety and suitability are paramount for advertisers when engaging or working with social platforms, especially emerging platforms. Therefore having these traits as a core pillar of the offering is a must for the adoption of Bluesky by advertisers,” he says. “The user base will also need to expand beyond users who have just left X due to the ‘toxic’ environment to attract more scalable audiences and diverse interests for brands to consider investing in the platform to be viable.”
Lourenco adds, “For this to be successful, Bluesky needs to sustain fast user growth and build a diverse habitual user base. Without this, Bluesky will not gain the necessary scale to succeed outside of being a niche social platform.”
