Meta says it’s moving away from feeds that are dominated by content from accounts a user is following to an “AI recommending content that you’ll find interesting from across Facebook or Instagram, even if you don’t follow those creators,” said Zuckerberg. “Reels is one part of this trend that focuses on the growth of short-form video as a content format, but this overall AI trend is much broader and covers all types of content, including text, images, links, group content, and more. Building a recommendation system across all these types of content is something we’re uniquely focused on.” The run rate on Reels has now reached $1 billion.
Meta blamed its sales decline on a slowdown in advertising revenue growth. The pivot to Reels is making it difficult for advertisers to advertise on Instagram, analysts say. “In order to monetise Reels, you’re asking advertisers to create new advertisements,”