In a rare candid statement, Meta CEO Mark Zuckerberg acknowledged that TikTok significantly slowed Meta’s global growth, particularly by siphoning younger users and reshaping engagement trends across social platforms. His comments shed light on how the ByteDance-owned app has reshaped the competitive landscape for social media.
TikTok’s Rise Erodes Meta’s Dominance
As reported by TechCrunch, Zuckerberg admitted during a private company town hall that TikTok “caught us off guard” with its highly engaging short-form video format, which quickly became a cultural phenomenon among Gen Z. Meta, formerly Facebook, saw a measurable decline in user growth, time spent, and ad revenue across platforms like Instagram and Facebook, especially between 2020 and 2023.
“We were late to the format,” Zuckerberg told employees, referencing TikTok’s dominance in short-form video. “It forced us to play catch-up.”
Reels: Meta’s Defensive Pivot
In response to TikTok’s surge, Meta rushed to launch and aggressively promote Instagram Reels and Facebook Reels, aiming to retain users within its ecosystem. While Reels has gained traction—especially in India, Latin America, and parts of the U.S.—it has yet to fully match TikTok’s virality or creator loyalty.
Zuckerberg admitted Reels is still evolving but said the platform has improved its monetization tools for creators and is now closing the gap on key engagement metrics.
Ad Revenues and Market Impact
TikTok’s disruption also diverted billions in digital ad spend, which previously flowed almost exclusively to Google and Meta. Zuckerberg noted that Meta faced a two-year stall in advertising growth, particularly among small and medium-sized businesses that shifted ad budgets to TikTok influencers and viral campaigns.
Meta is now regaining ground by refining its AI-driven ad tools and investing in more immersive ad formats, such as AR and VR, to support its long-term metaverse ambitions.
Zuckerberg’s Broader Strategy
Despite past missteps, Zuckerberg appeared confident about Meta’s direction, highlighting investments in AI content recommendation, mixed reality, and business messaging as long-term growth pillars. He also emphasized a renewed commitment to younger users, stating that “Meta can’t afford to lose the next generation.”
The remarks came ahead of Meta’s Q1 earnings, expected to reveal modest user growth and increased time spent on Reels—key indicators that the company is slowly recovering from the TikTok blow.
