When Meta Platforms introduced Reels as its answer to TikTok in 2020, it faced skepticism and accusations of imitation. However, recent numbers revealed by Meta show that reels is rapidly gaining traction among users and advertisers, positioning itself as a formidable contender against TikTok.
Reels, accessible on both Facebook and Instagram, owes part of its success to Meta’s improving recommendation software, which has been a strength of its Chinese-owned rival.
With enhanced discovery engines, Meta can now present Reels videos that match users’ interests, as shared by Meta’s head of online sales, operations, and partnerships, Justin Osofsky.
The growth of Reels is undeniable, with daily video plays on Facebook and Instagram surpassing 200 billion, a significant leap from 140 billion last fall.
This impressive figure puts Reels in a competitive position, and its annual revenue run rate has soared to $10 billion, a substantial increase from $3 billion last fall and $1 billion last summer.
Meta’s push towards utilizing artificial intelligence to improve content recommendations and ads across its platforms has further fueled Reels’ success.
With a seamless ad placement process, more than three-quarters of Meta’s advertisers are now promoting their offerings through Reels.
Debra Aho Williamson, a principal analyst at Insider Intelligence, attests to Meta’s success in this regard, describing the process for advertisers as simple as “checking a box.”
Despite Reels’ rapid growth, Meta acknowledges that its revenue from the feature may be lower than that generated from its Stories and Feed features, as people tend to scroll more slowly through video content.
While TikTok still leads in terms of time spent on social media apps, with US users averaging 53.8 minutes per day, Reels’ increasing popularity suggests it’s catching up.
With Meta’s continued focus on enhancing its ad platform and content recommendation capabilities, Reels’ growth trajectory shows no signs of slowing down.
As the battle between Reels and TikTok intensifies, users and advertisers alike can expect an even more engaging and competitive short-form video landscape in the months to come.
