Meta Platforms ( NASDAQ:META ) has been having a hard time lately, trying to convince investors that its metaverse plan will work and Apple’s changes to iOS. Its main business has been hurt by the growing and getting tougher competition in social media, especially from the Chinese company TikTok. Meta launched Reels as a counterattack two years ago, and it has been a critical step in keeping users from leaving for other platforms. Even though it took a while for the company to make up for the money it lost when people started paying more attention to Reels, Meta’s lack of flexibility in its core business will keep it from making more money in the future.
Meta Lets You Look at Short Videos
Meta’s move into short-form videos began with the release of Instagram Reels in August 2020 in 50 countries, Facebook Reels in September 2021 in the US, and a global rollout in February 2022. Meta has been putting a lot of money into Reels to compete with TikTok. They have a $1 billion creator fund and a Reels Play bonus program to reward the creator community for making Reels on Instagram and Facebook. They have also made technological advances to support algorithmic recommendations of Reels on Feeds.
The social media giant has been able to get regular users to interact with Reels, making people spend more time on Meta platforms and less time on competing ones. Currently, Meta offers two types of advertising through Reels: 30-second video ads that play between natural Reels and overlay ads that look like banners or stickers on Reels. The second one could be a better way to advertise. Advertisers can make their ads look like natural Reels videos, making it seem like viewers are watching two Reels videos back-to-back while the advertiser subtly changes how people think about their product or service. Interstitial ads that use the same format as the organic Reels feel less annoying because they blend in with other videos. This makes it less likely that the user will have a bad tim...
Click here to read the full article on PressReach.com .Subscribe to the PressReach RSS feeds:
- Featured News RSS feed
- Investing News RSS feed
- Daily Press Releases RSS feed
- Trading Tips RSS feed
- Investing Videos RSS feed
Follow PressReach on Twitter
Follow PressReach on TikTok
Follow PressReach on Instagram
Subscribe to us on Youtube