Fritz Jorgensen/iStock Editorial via Getty Images
Meta (NASDAQ:META) has become less of a social network, and more of a content recommendation engine, said Ken Gawrelski, Wells Fargo Securities’ equity analyst and managing director.
In a CNBC interview, Gawrelski said that the Meta Platforms’ (META) ad growth has been driven by the transition from being a social media site to a content recommendations engine, where its Reels product is contributing to more than 25% of the overall Meta usage.
In 2022, Google (GOOG) had a 33% share of e-commerce ad spent by platform, compared to 25% by Meta (META). Last year, Google’s share was 30%, and Meta’s (META) share was 31%.
“What we’ve seen over the last couple years, and this really manifests itself in the back half of 23’ and continuing to 24’, is Meta (META) has rebuilt its Signals,” said Gawrelski about the infrastructure for the machine learning processes that Meta uses to understand users’ behaviors and to optimize ads. “It’s the best in terms of its ability to target users, to drive conversations, and to continue to capitalize on these massive audiences they have.”
He said he sees continued opportunities for engagement growth for Meta, added that the platforms have gained back the share of engagement that TikTok gained during 2021 and 2022.
More on Meta Platforms:
This post was originally published on this site be sure to check out more of their content
