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Facebook FB has been benefiting from strong popularity of its products like Instagram, WhatsApp, Messenger and Facebook Watch, especially as coronavirus-led lockdowns and shelter-at-place guidelines have increased engagement.
However, per Piper Sandler’s 40th Semi-Annual Generation Z Survey, which draws conclusions from 9,800 teen respondents in the United States, with an average age of 15.8 years, 34% and 29% teenagers listed Snapchat parent Snap SNAP and TikTok as their favourite social app, beating Instagram’s popularity.
Notably, Snapchat reaches 90% of 13-34 year olds in the United States, making it a larger platform than Facebook, Instagram and Twitter TWTR among this demography.
Meanwhile, about 25% of teenagers in the United States chose Facebook-owned Instagram as their favourite social media app.
Tiktok’s popularity prompted Facebook to launch Instagram Reels in August, which helps users create and discover short, entertaining videos on Instagram much like its competitor. Moreover, Snapchat is not far behind. The company is experimenting with a feature that allows users to move through Snapchat’s public content with a vertical swiping motion.
Facebook, Inc. Price and Consensus
Facebook, Inc. price-consensus-chart | Facebook, Inc. Quote
Instagram Wins Actual Usage Charts, to Boost Ad Revenues
This should not be much of a concern for Facebook, as according to actual usage data among teen users, not popularity, Instagram remains on top (84%), followed by Snapchat (80%) and TikTok (69%).
Topping actual usage charts showcases Instagram’s importance as the cash cow for Facebook to generate ad dollars. The company’s user base of more than 3.14 billion (including its Family of services — Instagram, WhatsApp and Messenger) presents a large canvas for advertisers and makes the platform highly attractive.
To attract more advertisers (currently 3 million and counting), Facebook has unveiled tools to promote posts and evaluate business performance directly on Instagram. It would also add shopping features in Reels later this year to test user response.
Moreover, Facebook is looking for ways to monetize Instagram Stories and the addition of the Checkout feature to the platform is a step toward that direction. The feature allows Instagram users to browse and purchase products from 23 top brands in the United States, all within Facebook’s app.
Last month, the Zacks Rank #3 (Hold) company introduced the Facebook Business Suite that allows businesses to post on Facebook and Instagram at the same time, as well as manage and receive messages, notifications and alerts in one place. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Further, solid adoption of the Explore tab — which is used by more than 50% of Instagram users every month — increases the platform’s monetization opportunities. The company has started placing ads on the Explore tab, which is expected to drive the top line.
Efforts by Teen Popular Social Media Apps to Combat COVID-19
TikTok, Instagram and Snapchat have rolled out donation stickers to help raise funds for non-profit organizations helping people in need.
Snapchat recently rolled out an AR filter to spread awareness of WHO’s Solidarity Response Fund. The fund will support organizations in their efforts to analyze the spread of the virus, get supplies, support patients, provide supplies to frontline workers, and accelerate vaccination as well as treatment development.
To access this new AR filter, users can select the filter with the earth icon on tapping the smiley face camera icon and layout a dollar bill. The filter will scan up to 33 currency notes.
Meanwhile, TikTok has rolled out donation stickers to fund non-profit organizations working to benefit workers and patients affected by the COVID-19 pandemic. Last month, the video-sharing platform agreed to sell 20% stake to Oracle ORCL and Walmart.
Earlier this month, TikTok pledged $250 million for COVID-19 relief and donated medical equipment worth millions for the cause.
In March, Instagram added a COVID-19 relief funds section to raise money using donation stickers on Instagram Stories. The company has started expanding this feature in more countries, in turn boosting the scope of fundraising through the platform.
As of now, the donations section features organizations like UNICEF USA, CDC Foundation, and the United Nations Foundation.
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