Instagram Reels is proving to be a major success for Meta Platforms, generating more than half of the company's advertising revenue. This surge in revenue is attributed to Instagram's shift towards a video-first platform, with users spending the majority of their time watching Reels. The success of Reels poses a potential threat to TikTok, especially if a US ban on the app is implemented.
This is despite platforms like Facebook having more users overall and proves that the Reels experiment is a wild success.More than half of the money Meta Platforms is making from advertising – its primary business – is coming from Instagram , even with the over-three-billion user Facebook in its portfolio. The raising of money has more to do with the media sharing platform’s improved monetisation strategies and less to do with usership.
, citing research firm Emarketer, around 53 percent of Meta’s advertising revenues in the US is from Instagram, proving the shift to TikTok-like Reels to compete with ByteDance’s juggernaut and YouTube’s own version, Shorts, was a wild success for the platform. Emarketer believes that Instagram is now mostly used for Reels by its over two billion monthly users. “Instagram is now a video-first platform, with users spending close to two-thirds of their Instagram time watching videos,” Jasmine Enberg, principal analyst at Emarketer. This is bad news for TikTok as it waits to see if it will be banned from the United States next year. “If the TikTok ban is enforced in 2025, Instagram could capture over one-fifth of reallocated TikTok ad dollars in the U.S.,” added Enberg, which would further pad Meta’s already-hefty logbooks.Instagram’s rival to X/Twitter, Threads has now reached over 100 million daily active users, according to Meta CEO Mark Zuckerberg. The platform has been rushing to compete with upstart Bluesky.
INSTAGRAM REELS META FACEBOOK TIKTOK
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