Even BlueSky Social Can’t Escape Monetization

Idealism Collides Market Reality For The Rising Social Media Platform

4 min readMar 4, 2025

--

Photo Credit: Shutterstock

In a twist that shouldn’t surprise anyone who’s watched social platforms evolve, BlueSky’s CEO Jay Graber, has broached the once-unthinkable: ads might be coming to the decentralized promised land.

Twenty-nine million users and counting. That’s not just a number — it’s a weight. Each user adds to the platform’s infrastructure costs, each interaction demands server space, each moment of engagement requires maintenance.

BlueSky’s rapid ascent from Twitter alternative to legitimate social media contender has brought with it the burden of scale. And scale, as every platform before it has discovered, demands sustenance.

“The challenge isn’t growing users — it’s transforming that growth into sustainable existence without betraying our core principles.”

The BlueSky Paradox

BlueSky launched with the promise of decentralization, user ownership, and a cleaner social experience. Noble aspirations, certainly.

But as Twitter’s spiritual successor inches toward mainstream adoption, it faces the same fundamental equation that every social platform must eventually solve: how to fund infrastructure at scale when users expect services for free.

The mathematics are unforgiving.

Server costs scale linearly with user growth. Development teams need competitive salaries.

Security isn’t optional.

Even with decentralized architecture, someone still pays for the pipes that carry our digital conversations.

The pattern is clear: at scale, pure subscription models rarely generate enough revenue to support continued innovation and infrastructure costs. The question isn’t if advertising will enter the equation, but how.

BlueSky’s DNA — its very reason for existence — is rooted in decentralization and user autonomy.

The introduction of advertising into this ecosystem isn’t just a business decision; it’s a philosophical puzzle. How do you monetize freedom? How do you commercialize control without surrendering it?

Graber’s approach hints at something more nuanced than traditional social media advertising.

The emphasis on alignment with BlueSky’s open-source model suggests a reimagining of what advertising could be in a truly user-controlled environment.

The Third Way

What emerges from Graber’s considerations isn’t just another platform surrendering to market forces — it’s potentially a new model for how advertising might work in a decentralized world.

Imagine ads that users can not only customize but fundamentally control through the platform’s protocol-level features.

This isn’t just about targeting preferences; it’s about rewriting the rules of engagement between advertisers and audiences.

Think about it: In a truly decentralized system, couldn’t advertising itself become decentralized? Couldn’t the very nature of commercial messaging evolve when users hold the keys to their own digital domains?

The Native Advertising Renaissance

But here’s where it gets interesting. The future of platform advertising isn’t about interrupting experiences — it’s about enhancing them. Consider TikTok’s creator marketplace, where branded content feels indistinguishable from organic posts.

Or Reddit’s community-specific promotions that actually add value to subreddit discussions.

The key lies in understanding that effective advertising isn’t about product placement — it’s about content alignment. When Pinterest shows you a sponsored pin for gardening tools while you’re planning your spring planting, that’s not interruption — it’s assistance.

The Benefits Beyond Revenue

Smart advertising integration can actually improve platform dynamics:

  • Creator Sustainability: Direct brand partnerships provide revenue streams that keep talented creators engaged and producing quality content.
  • Innovation Funding: Ad revenue enables platforms to invest in new features and better user experiences, creating a positive feedback loop.
  • Democratized Access: Free, ad-supported tiers ensure platforms remain accessible to all users, regardless of economic status.

The Integration Challenge

The trick lies in the execution. Platforms must navigate several critical challenges:

  • User Trust: Maintaining transparency about sponsored content without breaking immersion.
  • Data Privacy: Balancing personalization with user privacy, especially crucial for privacy-focused platforms like BlueSky.
  • Community Culture: Preserving authentic community interactions while introducing commercial elements.

Possible Solutions

The solution isn’t avoiding advertising — it’s reimagining it. Future platforms need to view ads not as necessary evils but as potential experience enhancers. This means:

  • Content-First Design: Advertisements that add value through information, entertainment, or utility.
  • Community Integration: Promotional content that respects and enhances existing community dynamics.
  • User Control: Giving users agency over their advertising experience, from content preferences to data sharing.

The Reality Check

As BlueSky and other emerging platforms mature, they’ll face this same transition.

The key to success won’t be avoiding advertisements entirely but integrating them thoughtfully and transparently. Users don’t hate all advertising — they hate bad advertising that disrespects their time and intelligence.

The platforms that succeed will be those that view advertising not as a compromise of their principles but as an opportunity to align commercial interests with user benefits.

In doing so, they might just create something better than either pure subscription or traditional advertising models could achieve alone.

The future of social media monetization isn’t about choosing between ads and subscriptions — it’s about crafting hybrid models that respect users while ensuring platform sustainability.

It’s a delicate dance, but one that every growing platform must eventually learn to master.

What do you think? Send me your thoughts!

Here are some other articles that directly affect you and some guides to help you navigate our modern, turbulent world.

  • Connect with me on 🦋 Bluesky to carry on the conversation.
  • Follow me here on Medium.
  • Subscribe to my Substack for topics related to commerce and future of retail.

--

--

James Christopher
James Christopher

Written by James Christopher

Pen-smithing ✍️ about risk and resilience, culture and commerce, advocate of the retro-revival movement and human-in-the-loop models. 🦋 @jchrisa.bsky.social

Responses (1)