Meta Eyes Counterattacks as Social Media Rivals Struggle
Note: This article is based on Variety Intelligence Platform’s special report “2023 Media & Tech Trend Tracker,” available exclusively to subscribers.
With the rate of growth in digital advertising declining, some market entrants big and small in the social media space are feeling the competitive threat of Meta now more than ever.
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After registering as the most popular app download worldwide in 2022, TikTok maintained that title in the first quarter of 2023, racking up more than 186 million downloads, according to data.ai.
Despite its popularity, TikTok’s future remains shrouded in uncertainty as lawmakers look to ban the app in the U.S. A potential ban in the U.S. would be a major win for Facebook founder Mark Zuckerberg who has a competing feature on Instagram called Reels.
To bolster its short-form video monetization, Meta added new functionality to its Reels ads earlier this week and shuttered what it calls its “in-stream reserve” ads, which were targeted to advertisers as an alternative to TV commercials.
Then there was last year’s social media sensation, BeReal. The app shot up in popularity with younger consumers who appreciated its authenticity. But in September, VIP+ argued that while BeReal was looking promising, it was likely to suffer a similar fate to the once-hot audio app Clubhouse.
And those doubts look to have been correct so far in 2023. After peaking in Q3 of 2022, BeReal’s popularity has taken a nosedive. Even more unfortunately for BeReal, it was reported last month that Meta was testing a copycat feature called “Roll Call” through its Messenger app.
Another social media company that looks to be in turmoil is Twitter. After being taken private by Tesla CEO Elon Musk in October 2022, Twitter has been on a rollercoaster ride. There have been serious management concerns, employees have quit and been let go in droves, and consumers are growing frustrated with the user experience. Most recently, Musk announced Monday that only paying verified accounts would be promoted on the platform’s “For You” section.
Despite all the concerns regarding Twitter’s current stability, users are still mostly sticking with the platform. According to data.ai, Twitter’s downloads in recent months have shown resilience amid the consumer threats of ditching the platform.
Given the large market share Twitter has in social media, its recent troubles are presenting a big opportunity for Meta. Earlier this month, Meta confirmed that it was exploring a Twitter rival. Though Meta didn’t specifically mention Twitter, it said it was creating a separate platform for sharing text updates in a timely manner.
Its rivals’ challenges are the prime opportunity for Zuckerberg, and he’s proved he’s wasting no time capitalizing on their woes.
Read more of VIP+'s trends assessment:
• PlayStation soars amid consumer spend drop
• Connected TV growth poised to accelerate
• Why 2023 will be streaming's year of uncertainty
Plus, dive into the expansive special report ...
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