Mosseri found himself in the middle of the tension between the two companies, having moved to Instagram from Facebook. He understood some of the concerns the Instagram founders had about things like discontinuing some links from Facebook to Instagram, and similarly disagreed with certain changes from Facebook, but “also thought they were being made more of than they needed to be.”
Mosseri estimates this is the most Instagram has spent in a given year on creator incentives. Instagram sees creators as a good source of content after many rank-and-file users began posting fewer of their own updates.
That’s how Mosseri describes the state of things in late 2021, where a chart in a board presentation shows relatively flat growth in time spent on Instagram. If you were to look at Instagram’s growth here in isolation, he says, it would look like Instagram had some positive, modest growth. But comparing it to TikTok’s explosive rise tells a different story.
In a March 2020 update to Instagram staff, Mosseri gave a bleak overview of the challenges the company was facing. “The engagement trends, particularly in the US, have been concerning. Time spent has dropped, stories consumption and production have plateaued, Feed’s decline has continued, and time in Explore has been sliding since the summer of 2018,” he wrote, blaming the slide, in part on some of the company’s own mistakes “and competition from TikTok and Snapchat.”
The first time around, Instagram tried to build its short-form video concept on top of Stories, which he says was “not a sound foundation” for the product. “I think we could have and should have been more aggressive,” he says about building Reels and competing with TikTok.
Mosseri says Meta is always focused on competition, but TikTok represented the greatest he’s seen during his time at the company. After seeing engagement plateau in 2019, however, the company has since bounced back thanks to building out Reels and better AI-powered recommendations. “We’ve seen a lot of growth for the overall app, though the percentage of the app spent on friend content has gone down,” Mosseri testifies.
Mosseri testifies that “growth is everything” to Instagram and the company was deeply concerned to see feed impressions declining and engagement on stories plateauing in 2019. “Competition from TikTok is a big concern,” a presentation from the time says, adding a “conservative estimate” that 40 percent of the decline in time spent on Instagram was due to TikTok, and 23 percent in the US in particular.
Mosseri says he used to think of those platforms as more “lean-back experiences,” but that’s changed in recent years. TikTok is now “every bit as participatory as we are at this point” and as YouTube has leaned into Shorts, it’s “brought them closer to us.” Mosseri notes that TikTok now has a friends tab, which a TikTok executive testified earlier in trial only accounts for about 1 percent of the videos viewed on the app.
In a January Reel, Mosseri announced a new feed within Instagram of videos their friends have liked in an effort to make sure Instagram is not just “a lean-back experience, but a participatory one, a social one.” It underscores how Instagram still sees connecting friends as a core experience on its app. Mosseri testifies he was distracted watching the video because “I’m mostly focusing on the one comment that said ‘definitely not a good idea.’”
In this 2024 video played in court, Mosseri explains that Instagram doesn’t plan to go after the long-form video market because it’s not as conducive to sharing and interacting with friends. Mosseri testifies that even today, “I still think friends are an important part of the experience.”