Instagram Reels a clone of the banned Chinese App TikTok is a potential positive around engagement, on what should be a highly monetizable vertical for Facebook Inc. In addition, we see the move as a defensive play in helping retain usage that might have otherwise shifted to TikTok from Instagram.
Product Managers had to debate on How much incremental consumption Reels offers versus cannibalism – does it take time spent from higher monetizing newsfeed or lower monetizing stories ? In our view we think it can drive a pickup in overall consumption and cannibalize more time from Stories, a modest positive if proven correct.
Does the format lend itself to more ads per minute or fewer ? This is composed of two factors. How many clips per minute a user can