Tuesday, August 9, 2022

Meta Exceeds $1 Billion Annual Revenue for Reels Ads

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meta has surpassed $1 billion in annual revenue for advertising on its TikTok rival platform for creating short videos Reels, and Reels now has a faster yield rate than Facebook/Instagram Stories at identical times after launch, founder and CEO Mark Zuckerberg has revealed.

Zuckerberg said that in the April-June (Q2) period, we saw “a more than 30 percent increase in the time people spend on Reels on Facebook and Instagram“.

Meta had announced during its Q1 earnings call that Reels represented more than 20 percent of the time on its platform.

“Our work on monetization efficiency for Reels is progressing faster than we expected. The bottom line is I think we’re on the right track here and we just need to keep going,” he told analysts. during the company’s quarterly reporting. earnings call late on Wednesday.

In the Reels video player on Facebook alone, the company saw a 15 percent increase in watch time.

“On Instagram, we see that Reels make up more than half of the content that is reshared in posts,” Zuckerberg said.

He said the short-term challenge is the growth of short video.

“Reels is not yet earning at the same rate as Feed of Stories. So in the short term, the faster Reels grows, the more revenue it actually displaces from higher revenue sources,” Meta’s CEO added.

Meta launched ads and Reels last year and it is growing rapidly and “we see it as an area with significant growth potential going forward,” said outgoing COO Sheryl Sandberg.

“Our focus with Reels is currently on increasing ad load, improving performance and making the ads easy for advertisers to create,” she noted.

The company also uses AI to better understand the content published in Reels, so that “users can connect to the content that is most relevant to them and marketers can also show more relevant ads”.

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