Red Hot Social Headlines: 5.3.24

by Colten Gill, Account Supervisor

Welcome to the latest edition of Red Hot Social Headlines. This week, we’re covering the latest about TikTok’s potential U.S. ban, Threads’ reported monthly active users, new European Union probes into Facebook and Instagram, and a surge in Snapchat stock as its improved ad system continues to roll out.

ByteDance Prefers TikTok Shutdown in U.S. if Legal Options Fail, Sources Say

Late last week, sources close to TikTok owner ByteDance said the company would rather shut down its U.S. presence than sell if its fight against the latest legislation fails. 

Key details:

• ByteDance, which runs several other apps outside the U.S., has deemed its algorithm critical to its global business and does not want to risk ownership of it if forced to sell.
• TikTok accounts for only a small share of the company’s total revenues and daily active users globally.
• The U.S. reportedly accounts for only about 25% of its total revenues on TikTok.
• The platform’s CEO, Shou Zi Chew, has said he expects the company to win a legal challenge to block legislation that would force either the sale of the platform or its ban in the U.S.

Key takeaway: Any sale or shutdown of TikTok is likely still months away (if it happens). Still, brands and marketers should work to avoid any potential hiccups the platform may face in the U.S. by continuing to develop audiences and content across similar platforms like Instagram Reels.

Read more about ByteDance’s hesitations about selling here.

Mark Zuckerberg Says Threads Has 150M Monthly Active Users

Threads, the Twitter/X rival from Meta, has more than 150 million monthly active users, according to Mark Zuckerberg during the company’s latest earnings call. This number has grown from over 130 million in February.

Key details:

• After a strong start that fizzled out last fall, Threads has been steadily gaining users, positioning itself as a competitor to Elon Musk-owned X (formerly Twitter).
• Recently, the app has taken steps toward integrating with ActivityPub, a decentralized protocol that powers networks like Mastodon.
• Threads plans to release its API to developers by June, enabling platforms like Sprinklr and Sprout Social to build experiences around the social network.

Key takeaway: Despite being relatively new (about nine months old), Threads is making strides slowly but steadily to build a solid user base. With the release of its API coming this summer, brands should continue to watch how the number of active users changes and if it makes sense to establish a presence on the platform.

Read more about Threads and Meta’s Q1 2024 earnings call here.

Facebook and Instagram Face EU Probes in Content Crackdown

Facebook and Instagram will undergo European Union investigations into Meta’s handling of ads, especially political ads, to examine suspected breaches of the Digital Services Act (DSA).

Key details:

• Politico reported that a Russian campaign to influence the European Parliament was thriving on Facebook recently, pushing specific narratives with fake accounts.
• Hundreds of millions of Europeans will go to the polls on June 6 – 9 to elect new Parliament representatives. EU governments are concerned about a surge in Russian meddling that could sway voters’ opinions.
• The EU has also required platforms like Facebook to ensure that political ads and AI deepfakes are clearly labeled under the DSA before the election.

Key takeaway: As Meta faces EU investigations into content moderation, marketers and brands should closely monitor their ad practices and ensure compliance with regulations while being prepared for stricter scrutiny around elections. 

Read more about the pending EU investigation into Meta here. 

Snapchat Parent Company Sees Shares Surge as Improved Ad System Pays Off

Shares in Snap, the owner of Snapchat, surged by 21% after the social media group exceeded Wall Street’s quarterly revenue and user growth expectations.

Key details:

• Snapchat’s daily active users grew to 422 million in the first three months of the year, beating expectations of 419.6 million.
• Over the past year, the platform has implemented improvements to its advertising delivery system, which the company has said is delivering results faster than anticipated. 
• Snap CEO Evan Spiegel stated, “Our large, growing and hard-to-reach community, brand-safe environment, and full-funnel advertising solutions have made us an increasingly important partner for businesses of all sizes.”

Key takeaway: With its expanding user base and improved ad system, Snapchat is becoming an increasingly important partner for businesses of all sizes and a growing number of industries. Brand marketers should not immediately dismiss the platform when considering paid social reach, especially as the number of daily active users grows.

Read more about Snapchat’s latest quarterly results here.