1 Click TikTok from Facebook Big Sign succeeds

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Facebookthis is (NASDAQ: FB) efforts to take TikTok have changed considerably in the past few weeks. Earlier this month, he closed Lasso, his standalone application that aimed to copy the mechanics of TikTok. He then extended the Instagram Reels functionality to India just weeks after introducing it to users in Germany and France. The coils were originally launched last November in Brazil.

Reels will soon be launched in 50 other countries, including the United States, according to a report by NBC News. A spokesperson later confirmed the report. The upcoming move is a sign that Instagram is seeing strong traction in its new markets, and it could mean that it is ready to evolve functionality quickly. Management may also see an opportunity: TikTok has faced increased regulatory scrutiny in recent weeks, including a ban in India.

Facebook has the unique ability to quickly scale products and features when users start to express interest. This could make Reels a powerful engine of engagement while stemming the growing threat from TikTok to its advertising activities.

Image source: Facebook.

Beat the little competition and face TikTok

Last year, Facebook CEO Mark Zuckerberg said it will test its TikTok competitors in markets where TikTok is not very active. Once the feature works, increasing engagement in these markets, it will try to take TikTok to its stronger markets.

After India banned TikTok and 58 other Chinese apps, Facebook quickly took the opportunity to test Reels in a massive market already familiar with the TikTok format. But it was not the only company that sought to capture the attention of the 200 million former users of TikTok in India. Roposo, a rival to TikTok based in Bangalore, said it was adding up to 500,000 new users per hour to its peak after the ban on TikTok.

By deploying Reels in Instagram, Facebook has an advantage over most other competitors who are still trying to build a user base, and that advantage seems to prove its worth. Although Facebook has not commented or posted engagement data about Reels, the decision to expand to markets where TikTok is doing well suggests that it is performing well in Brazil, Germany, France and in India.

Now that Facebook has found a product that works (as well as what doesn’t), it can put more effort into taking TikTok directly. And Facebook is very good at developing products when it sees a good commitment in a small group.

The next stories?

Instagram launched Stories in the summer of 2016. By the end of the year, it had 150 million daily users and started selling ads. This had a notable impact on Break (NYSE: SNAP), which was preparing an IPO at the time.

While Snapchat had around 65 million daily active users in North America and more than 150 million users worldwide when Instagram Stories launched, Facebook quickly caught up with and overtook the Snap app. For reference, TikTok currently has around 30 million active users in the United States (but a much larger global user base).

One of the keys to Stories’ success was the first placement in the Instagram app. Although Reels will likely not see placement above user feeds on the Instagram home page, the feature will have its own dedicated section and tab. And Instagram can direct users to Reels via feed, stories, and crawling. With more than a billion active users per month (more than twice as many as when Stories was launched), Reels could see many new users in the coming months. If it continues to gain ground, it could be the next source of revenue growth for the FAANG title.



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