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3mo ago

Meta User Engagement Rebounds Following Policy Changes and TikTok Ban Speculation

Despite initial backlash over removing fact-checkers and scaling back diversity programs, Meta's platforms saw a recovery in user activity and revenue growth, driven in part by uncertainty surrounding TikTok's future in the U.S.

Overview

  • Meta faced criticism and calls for boycotts after eliminating third-party fact-checkers and scaling back diversity initiatives, but user engagement has since stabilized.
  • Daily Active Users (DAUs) on Facebook and Instagram initially declined by 2% following the policy changes but rebounded after news of a potential TikTok ban in the U.S.
  • Instagram, benefiting from its Reels feature, experienced stronger DAU growth than Facebook, as former TikTok users sought alternative platforms.
  • Meta's in-app revenue increased globally, with Facebook and Instagram seeing gains in both downloads and in-app purchases despite slight initial declines in U.S. downloads.
  • A CivicScience survey found that 36% of respondents supported Meta's policy changes, with Gen Z users showing the highest levels of support at 53%.