Meta's Reels Feature Is At a Major Turning Point
Meta Platforms (NASDAQ: META) management says it's time for a shift in strategy for Instagram and Facebook's Reels feature.
Since launching Reels on Instagram in 2020, Meta quickly scaled the feature, reaching hundreds of millions, if not billions, of users. In fact, it's grown so large so fast that it's cutting into a lot of time spent with other features on Instagram and Facebook, like the feed or Stories. And since the team has been mostly focused on growing the audience, that's contributed to a decline in revenue per user.
While marketers have been able to advertise within Reels since 2021, the "monetization efficiency," as management put it, is still well below that of Stories or the feed. CEO Mark Zuckerberg says there's limited value in continuing to focus on scale instead of monetizing the audience it already has.
Source Fool.com
