Bluesky, the decentralized microblogging platform, is experiencing a surge in popularity, adding a staggering 1 million users in a single day following the US elections!

With its unique open protocol and fediverse architecture, Bluesky offers users an alternative to traditional social networks. However, it’s yet to establish clear monetization strategies, leaving marketers wondering if it’s a viable investment—and raising the question of whether it could truly be the future of social media.

The platform’s recent growth has been remarkable, now boasting over 20 million users. This expansion is partially fueled by frustration with competitors like X (formerly Twitter) and Threads. Bluesky’s promise not to use user content for generative AI training and its emphasis on moderation—with plans to quadruple its moderation team—further bolster its appeal.

However, its journey to monetization remains unclear. Bluesky doesn’t currently offer advertising options, and its decentralized nature makes traditional in-feed ads a challenge. CEO Jay Graber has expressed openness to advertising, but the model is yet to be determined.

This mirrors the early stages of other successful platforms like TikTok, which also faced skepticism about monetization before finding viable paths. Whether Bluesky can similarly overcome these challenges will be key to its sustainability and potential dominance.

What is Bluesky?

Bluesky was originally envisioned by Jack Dorsey in 2019 as a decentralized alternative to Twitter. It operates on the AT Protocol, allowing users to host their own data and even set up independent instances with unique community guidelines.

This federated model connects users across a broader “fediverse” ecosystem.

(You can read more about this in our What is Bluesky? explainer from earlier this year.)

Key Features

• Algorithm Customization features allow users can tailor their feed experience.

• Starter Packs: Grouped accounts or communities make onboarding and community building easier.

• Third-Party Moderation Tools known as “Labelers” add flexibility in content control.

• Custom Domains provide a distinctive feature for personalization.

• Federated Network promotes transparency, interoperability, and user autonomy.

These features have attracted attention from publishers and journalists, who are adding Bluesky to their social strategies.

Yet, Bluesky’s small user base—compared to X’s 300 million and Threads’ 250 million monthly active users—underscores the platform’s early-stage nature.

How to Approach Bluesky as a Marketer

1. Observe the Landscape: Monitor how creators and publishers find success on the platform. Their stories can provide clues about potential ROI.

2. Test the Waters: If resources permit, consider establishing a presence by repurposing content from X or Threads.

3. Engage Creatively: Explore features like custom feeds to connect with niche audiences.

4. Stay Informed: Keep up with updates on monetization strategies and user growth.

Why It Matters

Bluesky’s rise reflects the ongoing fragmentation of the social media landscape. For brands, this underscores the need to adapt strategies and evaluate where to invest resources.

While its small size and lack of monetization options mean it’s not yet a major player, Bluesky is carving out a niche with its decentralized approach and unique features. Whether these elements can drive sufficient user growth and engagement to challenge dominant platforms like X and Threads remains an open question, but they highlight the potential for a different kind of social media ecosystem.

That said, not everyone is convinced. One commentator said: “I give it 6 months.”