Meta says users are spending more time on Instagram thanks to Reel recommendations from artificial intelligence. During the Q1 2023 quarterly earnings call, Mark Zuckerberg shared that time spent on Instagram has increased more than 24% since the launch of Reels, thanks to AI-powered content recommendations. The sharing of Reels has also doubled over the last six months. The trend is incremental, though, which means while user time is increasing overall, this is not yet directly translating to more revenue. Overall, Reels is on track to be revenue-neutral by the end of the year, and while there will be product work to figure out proper monetization, the company is confident it will eventually become a key contributor. While Gen Z showed distaste for the Reels feature when it first debuted, YPulse data shows Millennials are more likely to say they’d choose them over TikTok (though not a majority say so). But, YPulse’s New Content Creators trend report data also shows that 74% of Gen Z and Millennials are posting their content on multiple platforms now, so they may be seeing the same videos in both feeds. (TechCrunch)
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