Meta Platforms Inc.'s META Instagram, once considered to be losing its appeal to the younger generation, has made a surprising comeback, outperforming TikTok in app downloads and user engagement.
What Happened: Despite facing a potential existential threat from TikTok, Instagram has managed to regain its relevance, reported Business Insider.
Instagram’s downloads surged by 20% in 2023, while TikTok’s growth was only 4% year-over-year. Instagram also surpassed TikTok in the total number of app downloads, with 767 million compared to TikTok’s 733 million. However, TikTok still leads in user engagement.
One of the key factors contributing to Instagram’s resurgence is Threads, a Twitter competitor that necessitates an Instagram account. Threads’ launch prompted many users to re-download Instagram.
Despite initial skepticism, Threads became the most downloaded app in the App Store by December 2023.
See Also: Elon Musk Once Revealed Why He ‘Stopped’ Using TikTok: It’s ‘Probing My Brain’
Another significant factor is Reels, which initially struggled to attract creators and user engagement. However, the content on Reels has become more appealing, with more original videos and fewer recycled TikTok clips.
Instagram’s traditional feed has also evolved, featuring fewer posts from friends and more suggested posts and Reels. This shift has sparked criticism from some creators, including Kim Kardashian and Kylie Jenner.
Instagram’s Head, Adam Mosseri, attributes this change to the platform’s increased user activity in Stories, DMs, and Reels.
Despite its recent success, Instagram’s lack of innovative features has raised questions about the sustainability of its revival, especially in the face of potential competition from real-life experiences.
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Why It Matters: Instagram’s resurgence comes at a time when TikTok is facing its own challenges.
Moreover, TikTok’s expanding user base, including a significant number of users over 30, has not translated into a decline for Instagram. This shift in the social media landscape suggests that Instagram’s success is not solely due to its user base but also to its ability to adapt and evolve.
Meanwhile, the U.S. House of Representatives has approved legislation that could potentially result in the ban of TikTok in the U.S. Under this bill, ByteDance, the Chinese parent company of the app, is given a six-month window to divest its majority ownership. The legislation received widespread support in a bipartisan vote, but it must still pass through the Senate and receive presidential approval to be enacted into law.
Price Action: At the time of writing, Meta stock was trading at $482.1, down 3%, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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