UBS says Reels on Instagram is outperforming TikTok.
According to a recent note from UBS, channel checks by the bank indicate that “Reels is outperforming TikTok with lower CPMs and much improved engagement.”
That’s great news for Meta, given that TikTok has been viewed as one of the company’s top risks in the competition for more eyeballs.
The bank said the apps’ share of downloads have been rising for Instagram and Facebook, to 18% and 19% respectively, while TikTok has seen its download share fall to 22% from above 25% last year.
In Meta’s post-earnings conference call, UBS also wants the social media giant to offer more details about its initiatives in artificial intelligence, including how and when it plans to make money off of the new technology.
“We think the GenAI consumer app bull case is still under-appreciated and not priced into shares. We think more disclosure on GenAI product uptake and eventual monetization could bolster confidence in the durability of top line growth, driving multiple expansion,” UBS said.
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