"More than 3.4 billion people use at least one of Meta's social media apps every single day, which include Facebook, Instagram, and WhatsApp. Considering that is nearly half the population of the entire planet, finding new users is getting harder and harder, which is why the company is focused on boosting engagement instead. Simply put, the longer each user spends on Meta's apps, the more ads they see, and the more money the company makes."
"AI is a huge part of that strategy; Meta uses the technology in its algorithms to learn what content each user likes to see, so it can show them more of it. During the second quarter of 2025 (ended June 30), this drove a 6% increase in the amount of time users spent on Instagram compared to the year-ago period, and a 5% increase for Facebook."
Meta Platforms is scheduled to report third-quarter results on Oct. 29 with management guidance indicating accelerating revenue growth driven largely by AI. The company reaches more than 3.4 billion daily users across Facebook, Instagram, and WhatsApp, making new-user gains harder and shifting emphasis to boosting engagement. Longer user sessions increase ad impressions and revenue. AI personalization raised time spent on Instagram by 6% and on Facebook by 5% in Q2 2025. AI-powered ad recommendations improved conversions by 5% on Instagram and 3% on Facebook, allowing Meta to charge higher ad rates as businesses realize better marketing returns. Meta's earnings growth trails only Nvidia among the Magnificent Seven.
Read at The Motley Fool
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