Meta's Reels Catches Up to TikTok in Users, Advertisers, and Revenue

When Meta first launched Reels in 2020, many dismissed it as an attempt to copy rival app TikTok's viral video success.

But new data reveals Reels has grown exponentially, nearing TikTok in users, advertisers and revenue.

Reels' growth is partially thanks to Meta's improving recommendation technology, allowing it to better suggest relevant videos. Daily Reels plays on Facebook and Instagram now exceed 200 billion, up from 140 billion last fall.

Reels' annual revenue has jumped to $10 billion, versus around $3 billion last fall and $1 billion in summer 2021. That makes it about the size of TikTok's estimated 2021 revenue. Over three-quarters of Meta advertisers now place ads on Reels.

While Reels still earns less per video view than Facebook and Instagram feeds and stories, its growth creates a strong base for monetisation. TikTok remains the leader in time spent per user, but Reels’ rapid rise shows Meta can compete.

Source: Reuters