The Rise of Reels: Meta’s $50B Ad Machine

2026-01-15

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Meta’s short-form video surface, Reels, now generates $50 billion in annual run rate. That’s more than some of the largest media companies like Netflix, TikTok, and YouTube’s ad business. Reels may be less culturally relevant than those companies, and its users spend less time on the platform than others, but it prints money and shows no signs of slowing down. This episode explores how Meta’s infrastructure made Reels one of the most successful monetization plays in modern tech and what could threaten its momentum next.

Meta’s short-form video surface, Reels, now generates $50 billion in annual run rate. That’s more than some of the largest media companies like Netflix, TikTok, and YouTube’s ad business.

Reels may be less culturally relevant than those companies, and its users spend less time on the platform than others, but it prints money and shows no signs of slowing down.

This episode explores how Meta’s infrastructure made Reels one of the most successful monetization plays in modern tech and what could threaten its momentum next.

CHAPTERS

02:51 Culture vs. Cash

04:30 How Reels Makes Money

06:49 Meta’s Advantage

15:34 Risks Ahead

18:54 What’s Next for Reels

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