Zuckerberg has bigger problems than spending on the metaverse.
. Meanwhile, regulators have blocked Zuckerberg’s ability to make big, transformative acquisitions in social media that could jumpstart growth again.for the fourth quarter of 2021, the blue app managed to grow daily users by just 4 percent to 1.96 billion last quarter, while daily users across Instagram, WhatsApp, and Facebook ticked up slightly from 2.82 billion to 2.87 billion.
“Meta’s ad business continues to face some very real challenges,” said Jasmine Enberg, a principal analyst at Insider Intelligence. “Facebook, of course, is no stranger to obstacles, but the iOS changes are the first direct threat to its ad business. Combined with the rise of TikTok, brand safety concerns, and a shift in social media user behavior, there’s a perfect storm heading straight for Meta’s ad revenues.
It’s clear that, in the short term, Zuckerberg believes that copying TikTok will revive its growth. He said Wednesday that the company’s short-form video product, Reels, accounted for 20 percent of time spent on Instagram, and that video consumption was already more than half the time spent on Facebook. Meta is early in monetizing Reels with ads, but it is following the same playbook Zuckerberg used to successfully copy Snapchat’s Stories feature.
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