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TikTok remains favorite social media platform among teens

Yahoo Finance Live anchors discuss Piper Sandler survey findings which suggest that TikTok remains the favorite social media platform among teens.

Video Transcript

BRIAN CHEUNG: Well, time now for our Chart of the Day, and we're going to stick with Meta as part of this theme here. A lot of controversy over Instagram pivoting to a more video focused interface. The Kardashians really drummed that up into a huge controversy.

But this might be a reason why they're having to shake it up. This is Piper Sandler data from earlier this year. And it shows that Instagram really lost its hold against TikTok with more of the teens in the survey as of the spring this year saying that they favored the latter, 33% compared to 22% of Instagram.

And this coming as Meta had some very interesting commentary on the call last night. 15% of the feed on Instagram is generated by AI. And they want to double that to be comparable with TikTok, because TikTok's format is very much-- well, they're kind of the ones curating your feed.

AKIKO FUJITA: Yeah, there's a lot of headlines that came out of that Meta call. But one of the headlines I saw was, if you think Instagram is bad now, it's about to get worse.

BRIAN CHEUNG: It's about to get way worse.

AKIKO FUJITA: 15% to 30%. And to your point, a lot of this is about, I would argue, playing catch-up with TikTok because what's the best part of TikTok? It's the discovery element. And we've talked a lot about their algorithm, how they're able--

BRIAN CHEUNG: Scroll.

AKIKO FUJITA: --to really--

BRIAN CHEUNG: Scroll.

AKIKO FUJITA: --put forward some of these recommendations that you'd never think about following, but that fit right into that. It doesn't feel that way when you're on Instagram right now. And how many conversations have we had recently about the experience shifting? And you go back to those Kardashian comments. I mean, let's repeat them again, right? Because this has been going around Instagram with Kim Kardashian and Kylie Jenner both saying, stop trying to be like TikTok. I just want to see cute photos of my friends. And the experience is inherently changing.

BRIAN CHEUNG: Yeah, I mean, well, I think that this is the big dividing gap here, is that people had a utility for Instagram, and then people had a utility for TikTok, right? You wanted to connect with your friends, you use Instagram. You want to just see random stuff that someone's going to serve to you that you can mindlessly scroll forever on your couch on, you go to TikTok. So if this one platform is trying to be the other platform, you're kind of losing one outlet. And that's one argument.

On the other side of things, it is true. Look at the stats right here. Instagram was very much a lot closer to TikTok when you talk about last year. They were kind of already losing the boat at that point in time, but Instagram's looking at these stats and saying, that's a winning recipe. We need to get that market share back. So from a business standpoint, it's not surprising. From a personal standpoint, I don't know what you would prefer. I'm not really sure.

AKIKO FUJITA: It also marks a pivot, we should point out, for Mark Zuckerberg, because remember when Facebook was inundated with all these other feeds, he said we're going to go back to just sharing with friends. Instagram obviously is in a position where they need to get the market share back. And this is kind of out of necessity.

BRIAN CHEUNG: And it is true. No one really posts on the grid anymore, so. Up next on the--