Forum Key Insights

Meta Platforms and Instagram – Economic and IDFA Impacts

  • Public Equity
  • TMT
  • North America

Third Bridge Forum recently spoke to a former senior executive at Instagram (Meta Platforms Inc) to discuss Meta Platforms, its Instagram business and its positioning amid an uncertain macroeconomic environment. Here are the need-to-know insights from that Interview:

  • The specialist said Meta and Instagram had a revenue mix of around 80% brand advertising and 20% performance advertising during more normalised times. They envisage the percentage changing to 50/50 amid a more challenging economic backdrop before returning to a 60/40 or 70/30 split. 
  • We heard that IDFA has hit Meta and Instagram despite both platforms preparing for it for years. They told us this reflects Facebook’s significant trust issues causing conservative actions related to user data. This could take 1-2 years to be adequately addressed, according to the specialist.

“TikTok completely caught Instagram and Meta by surprise… Suddenly actually it wasn’t about your close friends and family, it was about just who had the most entertaining content.” 

  • The specialist said Meta and Instagram focused on short-form video after TikTok emerged strongly. We heard that despite challenges such as a traditional focus on friends, family and an older demographic, monetisation is still an opportunity. The specialist said Reel’s cost per million impressions is one-tenth of Newsfeed/Stories’ but could be at parity by 2025-26.  
  • Meanwhile, the specialist said Instagram users were spending 20% of their time on Reels. They think that percentage needs to rise to 60% within one year for Reels to be considered successful. 

For more human insights on meta platforms click on the transcripts below.

Related Transcripts

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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