Why Bluesky is emerging as X's most promising advertising alternative

As the decline of X (formerly Twitter) persists, driven by controversies over its leadership and policy decisions under Elon Musk's ownership, the 2024 US election has further intensified these challenges, accelerating the exodus of professionals and advertisers from what was once the leading platform for public discourse on social media.

Under Musk's leadership, X has faced declining trust and diminishing user activity. Policy changes, such as allowing users to view posts from blocked accounts, alongside broader rollbacks in content moderation, drew widespread backlash. By mid-2024, some reports indicated that usage in the US had declined significantly, while advertisers increasingly distanced themselves from the platform amid concerns over misinformation and governance issues.

Amid this turbulence, Bluesky has emerged as a potential alternative, with a distinct technical foundation and governance model. The platform’s origins trace back to 2019 as an experimental project within Twitter, intended to explore decentralised social media protocols. After becoming an independent entity in 2022, Bluesky launched an invite-only beta in early 2023, focusing on controlled growth. By late 2024, its user base had grown significantly, reaching nearly 15 million users globally, although exact growth rates vary by source.

How it works

Bluesky's architecture is built on the AT Protocol, a decentralised framework designed to address persistent challenges in social media. Users can share text posts (up to 300 characters) and images within an interface that feels familiar to former Twitter users. Its standout feature is a "marketplace of algorithms" allowing users to select or create their own algorithmic feeds, offering greater control over content discovery and curation compared to traditional platform-imposed sorting.

The platform also employs a domain-based handle system for identity verification. This system enables users to self-verify their accounts by proving domain ownership via DNS text records or HTTPS pages. While it offers live verification capabilities, it currently lacks mechanisms to handle changes in domain status, leaving some gaps in long-term account authenticity.

Bluesky has also taken steps to enhance platform health. In March 2024, the company open-sourced its moderation tool "Ozone" enabling independent moderation systems within its decentralised network. In August 2024, it introduced "anti-toxicity" features, such as detachable quote posts and hidden replies, aimed at improving user experience and reducing harassment. Additionally, a community notes-like feature is reportedly in development, further expanding user participation in content moderation.

Positioning and appeal

Unlike Threads, which is tightly integrated into Meta’s ecosystem (with over 275 million monthly active users), or TikTok, which focuses on entertainment-driven content, Bluesky positions itself as a decentralised platform catering to diverse user interests. Features like "starter packs" help users quickly connect with communities of interest, while Custom Feeds offer advanced content curation, supported by third-party tools like Skyfeed.

In Asia Pacific, where social media adoption is high and platforms play a critical role in business communication, Bluesky’s decentralised structure offers potential appeal. Countries such as India, Indonesia, and the Philippines, which face growing concerns about data privacy and government oversight, could find value in its transparent governance model and user-controlled moderation systems. However, Bluesky’s limited reach in the region compared to established competitors, and the strength of local platforms, present significant challenges. Its ability to navigate regional regulatory landscapes remains untested.

Advertiser implications

Looking ahead, Bluesky’s development roadmap presents both opportunities and uncertainties for advertisers in the region. Planned enhancements to content moderation tools and analytics capabilities could make the platform attractive to brands seeking safer, more transparent advertising environments. These features may allow advertisers to better target niche communities, reducing risks associated with broader algorithm-driven platforms.

Bluesky’s decentralised model, which prioritises user control and transparency, offers a unique approach to engagement. Custom Feeds, for instance, allow for refined content targeting that can align with specific brand values, while "starter packs" provide a means to tap into pre-established communities for focused campaigns.

However, the platform’s relatively modest user base—compared to giants like Threads or TikTok—presents challenges. For now, the limited reach could restrict large-scale campaigns, making Bluesky more suitable for niche or experimental strategies rather than mainstream advertising efforts. Additionally, the absence of mature ad placement tools or a proven monetisation model introduces uncertainty, as advertisers currently lack clarity on the ROI potential of the platform.

The broader shift in social media preferences toward decentralised and user-controlled platforms underscores Bluesky’s potential to redefine digital engagement. For brands and advertisers, the platform offers a glimpse into the future of targeted, community-centric marketing. However, its ability to scale while maintaining governance and integrity will determine whether it becomes a viable cornerstone of ad strategies or remains a niche player in the social media ecosystem. For now, Bluesky presents an intriguing opportunity for forward-thinking advertisers willing to experiment in an evolving space.