Maybe Instagram has backfired. but the video is coming

Meta says it’s moving away from feeds that are dominated by content from accounts that follow a user’s “AI recommending content that you’ll find interesting on Facebook or Instagram, even if you follow those creators.” Don’t follow,” Zuckerberg said. “Reels is part of this trend that focuses on the development of short-form video as a content format, but this overall AI trend is much broader and includes all types of content, including text, images, links, group content, and more. .. Building a recommendation system across all of these types of content is something we’re particularly focused on.” The run rate on the reels has now reached $1 billion.

Meta attributed the decline in its sales to a slowdown in ad revenue growth. Analysts say the reels’ pivot is making it difficult for advertisers to advertise on Instagram. “To monetize reel, you are asking advertisers to create new Advertising,” says Mark Schmulik, senior analyst at consultancy Bernstein, says advertisers will be slow to embrace reels because it requires them to break away from old advertising habits and turn their original content into video content. The challenge ensures that “consumers engage with ads on the format in the same way that consumers have already been on News Feed and Stories”.

Video “Where the World Is Going” Might

Instagram is getting a tough competition from Tiktok. “TikTok has been the fastest growing social media platform that GWI has seen, not only in terms of user base but also in terms of users,” says GWI’s Beer. He says that increasingly, watching “fun” content (which tends to be more associated with short-form videos) is the number one reason for taking to social media on platforms like Instagram, TikTok, and YouTube.

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Creators think the Instagram change is a tension between the old and the new guard of Instagram users, but Beer says there’s actually a lot of overlap: 72 percent of Instagram users who log on primarily to share photos , also say they use Instagram to consume fun content (which is more attached to the reels), according to GWI. “More people turn to Instagram for ‘trendy’ content than any other platform, but ‘fun’ content is still the most wanted.”

Whether it’s Instagram or TikTok, static content is no longer a priority as creative marketing agencies like Billion Dollar Boy, which creates 4,000 to 6,000 branded content ads a month, are moving to more momentum-based content. “For a long time, we’ve been promoting reels as a business because the success and performance is far better than other types of content,” says CEO and founder Edward East.