The news: Facebook and Instagram parent Meta reported strong Q3 results, posting $51.24 billion in revenues, up 24% YoY, with ad impressions up 14% YoY.
The Instagram story: Instagram has become Meta’s core growth engine—which is why the company is paying so much attention to the app. Instagram is being reshaped around AI-powered discovery, video-first engagement, and cross-device reach.
- Reels takes center stage. In markets like India, where TikTok remains banned, the app opens directly into a Reels feed, signaling a possible forthcoming global model. Reels now drive half of all time spent on the platform, up 20% YoY, turning Instagram into a true video entertainment hub.
- AI personalizes the experience. Instagram is testing topic-based Reels controls that let users customize feeds by interest. Combined with Meta’s recommendation engine, this gives Instagram TikTok-like precision in predicting what users want to watch next.
- Video moves to the big screen. Meta is developing a connected TV (CTV) app for Reels, extending its reach to televisions and competing directly with YouTube. A new picture-in-picture feature on its mobile app keeps videos playing as users multitask, boosting completion rates and total watch time.
- Creators get serialization tools. Linked Reels let creators build episodic content—short videos that connect into stories, cliffhangers, or shoppable sequences. Brands can use the same format to sustain engagement across campaigns instead of relying on one-off impressions.