Meta Platforms: Conferences/Morgan Stanley

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Tom Alison, Head of Facebook participated in the Morgan Stanley Technology, Media & Telecom Conference held on March 7, 2023. Overall, his comments on Reels, generative AI and ad products were positive. Here are the main insights from the call;

Facebook Reels and Posts (min 5:33-7.02)

• Facebook Reels is now one-third of Facebook time.
• Facebook is now 50% of overall time spent on Meta Platforms.
• Facebook Reels has grown in the order of 70% y/y.
• 30% of Facebook posts on average are delivered by their recommendation system (2x up in the past 2 years).

New Recommendation Architecture (min 8:37-12)

• Before 2023, each model had their own recommendation architecture. But last year they moved into a single recommendation architecture.
• Phase 1 of the transition involved moving the recommendation systems from traditional Chips to GPUs.
• The new model led to an 8-10% increase in Reels watch time, which proved that it was “learning from the data much more efficiently than the previous generation.”
• The model is part of a road map that goes to 2026.
• Facebook is now in Phase 3 of the transition which involves validating the model and pushing it across multiple products.

Facebook Usage (min 13)

• A lot of focus has been on reaccelerating Facebook usage.
• Facebook usage has been growing QoQ in the U.S.
• Daily usage among young adults in the U.S. is growing.
• Organic content impressions are growing.

Click-to-Message (min 31:30)

• There is a growing demand for this product, particularly in East Asia and parts of LATAM.