Meta says time spent on Instagram grew 24% thanks to TikTok-style AI Reel recommendations

Meta shared some updated engagement info around its platforms on its Q1 2023 quarterly earnings call on Wednesday, with Meta CFO Susan Li joining CEO and founder Mark Zuckerberg to field questions from analysts about its results. Zuckerberg shared that time spent on Instagram has grown more than 24% since the company launched Reels on the platform thanks to AI-powered content recommendations — aka, the kind of non-connection recommended videos that TikTok basically built its entire brand upon.

“We’re very pleased with what we’ve seen Reels drive in terms of incremental engagement on the platform so far,” Li said later in response to an analyst question, adding that “it’s clear that people value short-term video” on the platform. She further clarified that Instagram is also seeing a lot more sharing around Reels in recent months.

“We’re seeing the sharing flywheel take off with Reels re-shares, with re-shares doubling over the last six months,” she said.

Li seemed to shy away from an analyst question regarding whether Reels was having a similar impact on Facebook proper, but did repeatedly note that on FB, AI-driven recommendations that don’t come from direct connections are increasing engagement among users.

While Reels and AI recommendations are driving more engagement on Instagram, that’s not yet directly translating to more revenue. In fact, Li acknowledged that Reels are actually cannibalizing some revenue from Stories and feed-based posts, since they’re accounting for some of the time users would’ve spent engaging with that content. The larger trend is incremental however, meaning overall user time is going up, which Li said will eventually be a positive point for revenue potential. She said Reels is on track to be revenue-neutral by end of year, or early 2024, and looked ahead to positive contributions sometime after that. She did point out that there will be product work in figuring out proper monetization for Reels, since they’re “structurally different” from existing Instagram content types.

“We don’t have line of sight to getting Reels to monetization parity with feed or Stories per time because of those structural differences,” but because it’s driving incremental growth, she said they’re confident they will eventually become a key contributor to monetization.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *


For startups, growth still trumps cloud cost control

ADVERTISEMENT There’s room for startups to cut their cloud costs, even if they have to balance the implicit costs of doing so, such as the time required and the potential for slower development. The question then becomes: How much of a priority is finding incremental savings for young tech companies? A recent survey of founders […]

Read More

YouTube rolls back its rules against election misinformation

YouTube was the slowest major platform to disallow misinformation during the 2020 U.S. election and almost three years later, the company will toss that policy out altogether. The company announced Friday that it would reverse its rules around election denialism, allowing some previously prohibited false claims, effective immediately. Axios first reported the changes. “In the […]

Read More

Gig workers get paid, Fidelity slashes Reddit’s valuation and AI conquers Minecraft

Hey, folks, welcome to Week in Review (WiR), TechCrunch’s regular newsletter that recaps the week in tech. Hope the summer’s treating y’all well — it’s a balmy 90 degrees here in NYC! — and that some much-needed R&R is on the agenda. Speaking of “agenda,” mark your calendars for Disrupt, TC’s annual conference, kicking off […]

Read More
ankara escort çankaya escort çankaya escort escort bayan çankaya istanbul rus escort eryaman escort ankara escort kızılay escort istanbul escort ankara escort ankara escort escort ankara istanbul rus Escort atasehir Escort beylikduzu Escort Ankara Escort malatya Escort kuşadası Escort gaziantep Escort izmir Escort