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(upbeat music), - [Narrator] Short-form video has become, the latest battleground in social media,, and the three big players?, TikTok, Instagram Reels,
and YouTube Shorts., - In the next few years, it will be billions of
dollars being poured, into these platforms,, trying to increase their reach,, trying to increase the
value for advertisers., - [Narrator] So let's compare them and see, which one is winning over users so far, and which one might come out on top., TikTok was the first of the
three to burst onto the scene,, but before TikTok there was Vine,, a popular short video
service offered by Twitter., (people cheer), - Vine was one of the
first short video platforms, to really grab the
attention of young creators., After Twitter discontinued Vine in 2017,, it created a big gap in the market, that was prime for TikTok to exploit., - [Narrator] TikTok enjoyed rapid growth, in places like the US and India,, and by February 2019, the app had been downloaded
more than a billion times, on Apple iOS and Android, according to app analytics
site Sensor Tower., But in 2020, the narrative
started to change., - America and other
countries went into lockdown, because of the coronavirus,, people started spending
more time on TikTok,, and all of a sudden it seemed like, the scrutiny on TikTok also increased., - [Narrator] President
Donald Trump voiced concern, over the possibility
that user data on TikTok, could be shared with
the Chinese government, through the app's parent
company ByteDance., - We're looking at TikTok,
we may be banning TikTok., - He launched a lengthy back and forth, with TikTok and its
Chinese parent ByteDance, that never really reached
resolution during his presidency, but had a really huge destabilizing effect, on the app's position in the US., - [Narrator] At the time,
TikTok officials said, that user data was held in
servers in the US and Singapore, and wouldn't be shared., In June 2020, India decided to ban TikTok., - That's important
because it presented a gap, for rivals like Facebook
and Google's YouTube, to try to offer their own
products in the market., - [Narrator] And sure
enough, in late 2020,, Facebook and YouTube launched, their own short video services., Snapchat also entered
the mix with Spotlight, which offers a daily pool of
more than one million dollars, to users who create the
most entertaining Snaps., - Instagram and YouTube already
had large built-in audiences, and TikTok had primed people to want, this kind of short-form video., When Instagram and YouTube
started rolling out, their own services,, they took off pretty quickly., - [Narrator] Meta hasn't
said how many monthly users, interact with Reels,, but Instagram passed, two billion monthly
active users last year,, and in its April earnings call, Chief Executive Mark Zuckerberg said,, "Reels already makes up
more than 20% of the time, "that people spend on Instagram.", - [Narrator] Google said in June, that more than 1.5 billion people, watch YouTube Shorts every month., TikTok said in September the app had drawn, more than one billion monthly users., Third party estimates
have shown that number, as high as 1.6 billion monthly users., The short video craze
also inspired Pinterest, to create Watch last year,, where users can scroll through
short videos and pictures., Netflix launched a
feature called Fast Laughs, that serves up short
clips from Netflix shows., And even Twitter said in December, that it was testing out
an updated Explore tab, to allow users to scroll
through short-form video tweets., So with all these options,, which platform is the
most popular among users?, - TikTok certainly seems
like is still in the lead., - [Narrator] If you look at the user data, from digital intelligence
company SimilarWeb,, people say they're spending
more time on TikTok, than on the Instagram
app or YouTube platform., - With that being said,, Reels and Shorts are gaining very quickly., - [Narrator] In a June survey, by data platform company
Inmar Intelligence,, 44% of people picked TikTok, as their preferred
short-form video service,, followed by 29% for YouTube Shorts, and 20% for Instagram Reels., Another measure of success
for these platforms?, Advertising revenue.
- TikTok seems to be, the farthest along in turning
on advertising on the service., This year, they're projected
to make about $12 billion, in advertising revenue,, up from $4 billion last year., - [Narrator] TikTok partners, with e-commerce platforms like Shopify, to help businesses advertise directly, through their Shopify dashboards., And earlier this year,, in an effort to attract more advertisers,, TikTok enabled first
and third party cookies, on top of its existing tools., - YouTube Shorts only recently started, allowing ads on the service., Reels is also more immature, turning on ads on the service., - [Narrator] But they're
quickly catching up., Their parent companies, Google and Meta,, are two of the largest
online advertising companies, in the world., - It's a fairly safe assumption, that they're putting a lot of effort, behind getting digital
ads on these services, and making that a bigger part, of their growth story for the future., - [Narrator] Second place
is still a close battle,, but it appears that Shorts
is gaining fast on TikTok, based on viewer data
Google released in June., Shorts began rolling
out ads globally in May, and Google said it would
eventually allow companies, to make their ads shoppable,, like on TikTok and Reels., - It's still a little bit early
to tell how that is going,, but YouTube right now is looking
for a new source of growth, as revenue growth has been flagging,, so they're putting a lot
of work into making Shorts, a big advertisement platform., - [Narrator] YouTube Shorts
also has a unique advantage., It allows creators to
use the analytics tools, on YouTube's main platform,, which provide data about
who is watching videos., These tools help creators work with brands, and prove the effectiveness
of their sponsored content,, but YouTube Shorts doesn't offer creators, the same special effects
options as TikTok., This spring, it rolled out new features,, including one that lets users, turn snippets of existing
YouTube videos into Shorts,, but it's still missing tools like this,, which lets creators combine their video, with one from another user., It's harder to pinpoint
where Instagram Reels is, in this race, because Meta has been
reluctant to release data, about monthly active users on Reels., But in its July earnings call,, Chief Executive Mark
Zuckerberg said the company saw, "a more than 30% increase, "in the time that people
spend engaging with Reels, "across Facebook and Instagram.", - [Narrator] However,
this is the first time, that Meta has ever reported
a decline in revenue,, down almost 1% from the previous year., Earlier this month, Meta said
it is reallocating resources, from its Facebook News tab and
newsletter platform Bulletin, as part of a broader shift, toward short-form video content creators, that can compete with TikTok., The company also said Facebook's Home feed, will be more personalized,, featuring Reels and content driven, by the platform's algorithm., As the race continues,, TikTok remains a concern
for some US lawmakers, and users concerned about data privacy,, but the company has taken
steps to address this., In June, the company said
that 100% of US user traffic, was being routed to its partner Oracle,, and TikTok said that while it still uses, its own US and Singapore
data centers as backup,, it expects to delete US user
data from its own data centers, and migrate fully to Oracle servers., But for now, TikTok's algorithm
still seems to attract, more users among the
short video platforms,, and that might help it remain
the front runner in this race., (gentle music)

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TikTok vs. Instagram Reels vs. YouTube Shorts: Who Will Win the Short-Video Race? | WSJ 0

TikTok vs. Instagram Reels vs. YouTube Shorts: Who Will Win the Short-Video Race? | WSJ - Wall Street Journal 1

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