Threads struggles to engage Gen Z: Meta faces challenge against the dominant TikTok.

Gen Z’s entry into adulthood will be the main source of growth in US social media users over the next five years. While there are some parallels with millennials, this is a generation that has long been immersed in social media and has come up with its own rules to navigate it. They are self-aware, quick to adapt, and ready to push back on the standards set by their predecessors.

What were the three biggest ad-related takeaways from Meta’s stellar Q2 2023 earnings report? Reels’ revenues, AI ad products, and a return to ad growth in Europe.

On today's episode, in our "Retail Me This, Retail Me That" segment, we discuss what TikTok's flywheel looks like, its latest efforts to build out its own shopping platform, and what the social network has that Meta doesn't. Then, for "Pop-Up Rankings," we rank our top four existing TikTok copycat apps. Join our analyst Sara Lebow as she hosts analysts Sky Canaves and Jasmine Enberg.

With the rise of TikTok and all its copycats, there’s a lot to keep track of in terms of paid advertising. Creators frequent TikTok, Reels, Shorts, and Spotlight in some capacity, but the ad ops on each platform vary. Here’s a quick guide to what’s available on each platform.

Meta accounts for 19.5% of US digital ad spend, despite US adults spending only 7.6% of their time with digital media on the platform, according to our forecasts.

Meta brings generative AI to Instagram users: Popular instances of consumers using AI for amusement make the app the perfect testing ground.

Meta's strong earnings boost stock by 6%, owing to efficient cost-cutting measures, rebounding online ads, increased Reels engagement, and successful AI integrations.

Meta’s Q2 points to continued rebound: An 11% revenue increase shows that new products and advertising offerings are helping right the ship.

What’s happening? Apple announced in June that iOS 17 would provide “even greater protections against trackers,” in a move that will affect links shared from Mail, Messages, and in Safari’s private browsing mode.

Snap has weaker Q2 but makes progress: The company posts a smaller loss, demonstrates a 14% increase in DAUs, and sees strides in innovation.

TikTok's new phase: The platform now supports text posts, further broadening its creative canvas beyond short-form videos.

Following three consecutive quarters of ad revenue losses, YouTube faces an urgent need to restore growth. This could present marketers using YouTube with opportunities to target audiences on both connected TVs and smartphones.

Retail media has transitioned from its 1.0 era, defined by on-site search and sponsored product ads, into the era of retail media 2.0, which consists of a mosaic of ads on-site, in-store, and across other media channels. “The opportunity gets much bigger, but realizing the opportunity also gets a lot more complex,” our analyst Andrew Lipsman said on “Behind the Numbers: Reimagining Retail.”

The US ad market grew for the first time in 11 months this May, according to Standard Media’s US Ad Market Tracker. Now the question is if expansion can continue. June and the start of July brought a host of ad updates that could help continued growth, including ad tools enhancements from Google and Microsoft, retail media opportunities from Roku and Uber, and more. Here’s a breakdown of what’s new.

On today's episode, we discuss the impact Threads will have on Twitter usage, how much of a revenue boost this could be for Meta, and what advertisers should be thinking about with the arrival of this new app. "In Other News," we talk about Snap's efforts to tempt creators and whether it's possible to actually prove that social media is bad for teens. Tune in to the discussion with our analysts Jasmine Enberg and Debra Aho Williamson.

Threads has staying power, but Meta must ensure that the novelty and intrigue don’t wear off before the network effects take hold. It’s already a formidable rival to Twitter, but it’s not a replacement, and Threads must find its identity outside of Instagram to become a viable platform for users and advertisers.

Threads engagement unspools: Despite a promising start, Meta's new app faces a dip, potentially dimming ad potential.

In Threads’ first week, 33.5% of app downloads came from India, followed by Brazil (22.5%) and the US (16.1%), according to data.ai.

This first-of-its-kind report compares and contrasts our US ad spending forecast with our US time spent with media forecast. It identifies unexpected incongruities between how marketers are spending ad dollars and where consumers are spending their time.