Instagram Reels Might be the Real Deal

Facebook’s answer to TikTok has a chance to also be a solution for driving Instagram’s next leg of growth. A new survey conducted by Jefferies indicates Reels is an early success and suggests the video product has potential to keep more users inside the app for longer. 

High engagement: Of those that use Reels, 25% of respondents say they use it once daily and 24% say they use it more than once daily. Additionally, more than 80% indicate they are likely to continue using Reels in the future.

Monetization: Reels gives Facebook’s 9 million advertisers another channel to reach a highly coveted audience. Thill estimates Reels could add $2.5 billion+ in ad revenue for Facebook by 2022. This assumes 500 million to 1 billion Reels users. 

Reminiscent of Instagram Stories: Thill believes Reels could follow the growth trajectory of Instagram Stories, which he points out took just 3 months to reach 100 million daily active users.