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Q&A with Instagram CEO Adam Mosseri, who says ads will come to Reels eventually and defends Facebook's work during the 2020 election season

- Instagram is redesigning its app to make Reels, its TikTok competitor, and shopping more prominent.  — CEO Adam Mosseri confirmed ads …Tweets:@yodaTweets:Drew Olanoff /@yoda:it's just sad that the head of instagram is the person who's out there defending facebook's election performance. https://twitter.com/...Expand More For NextUnexpand More For Next

CNBC Julia Boorstin

Context & Ripple Effects

In this November 2020 Q&A, Instagram CEO Adam Mosseri laid out two tracks at once: a redesign pushing Reels and shopping to the fore, and a commitment that ads would eventually follow into Reels. The commitment was a direct answer to TikTok's rise, which Facebook's leadership had already framed as its most serious competitive threat.

The arc since has validated the signal: Instagram followed through with the worldwide launch of ads in Reels in mid-2021, and by year-end Mosseri announced Instagram would consolidate its video products around Reels and double down on video in 2022. The election-defense portion of the interview also foreshadowed the content-moderation pressure he addressed in a follow-up Q&A on safety at scale after Trump's suspension.

First-order effects

  • Advertisers get a stated roadmap: Reels inventory is coming, so brands building short-video creative for TikTok can plan for the same format inside Instagram rather than treating the two as separate buys.
  • The redesign immediately reweights Instagram's home surface toward Reels and shopping, changing what creators and merchants see and how their posts are distributed.

Second-order effects

  • TikTok faces a competitor that can bolt a proven ads business onto a cloned format, pressuring it to convert its own audience into advertiser revenue faster.
  • Instagram creators gain a monetization path tied to Reels views once ads arrive, which shifts creator effort toward the format Instagram is promoting and away from static posts.

Third-order effects

  • If the pattern holds, Instagram completes its conversion from a photo-sharing network into a video-and-commerce platform structured around Reels, with feed posts demoted to supporting inventory — the consolidation Mosseri later confirmed for 2022.
  • Short-video advertising becomes a two-platform market (Reels and TikTok), and Meta's long-term relevance against TikTok, as later coverage of the battle shows, depends on whether Reels can hold creator supply once the ad money arrives.

The trend: Instagram is remaking itself from a photo feed into a TikTok-style video and shopping platform, with ad monetization following the format rather than leading it.

Discussion

  • @yoda Drew Olanoff on x
    it's just sad that the head of instagram is the person who's out there defending facebook's election performance. https://twitter.com/...
  • @defnoodles Def Noodles on x
    BREAKING NEWS THAT WILL MOST DEFINITELY CHANGE YOUR LIFE: James Charles GOES OFF on Instagram for updating the app and moving the notifications and post buttons to the upper right corner of the screen. https://twitter.com/...
  • @instagram @instagram on x
    Some changes are coming to Instagram 👀 Today you'll start seeing a Reels tab and a Shop tab on your home screen ✨ https://about.instagram.com/ ... https://twitter.com/...
  • @lukesbeard @lukesbeard on x
    Putting a dedicated Reels button where you normally start a post, and a dedicated shop button where you typically check your activity. Taking advantage of muscle memory is a helluva drug. https://about.instagram.com/ ... https://twitter.com/...
  • @mosseri @mosseri on x
    Today we're bringing some changes to Instagram - a Reels tab and a Shop tab. The Reels tab makes it easier to discover short, fun videos from creators around the world. The Shop tab gives you a better way to connect with brands and products you love. https://about.instagram.com/ …
  • @derekmross Derek Ross on x
    We already see ads every 4 posts, most of them to buy something. We don't need a shopping app built into a photo sharing app. https://twitter.com/...
  • @yaboireezus Reezy on x
    changing notifications to shopping is such an annoying change fuck your ux team https://twitter.com/...
  • @nicokartel @nicokartel on x
    the original owner of instagram selling the app's rights to facebook in 2018 really ruined this app. https://twitter.com/...
  • @zahikasem Zahi Kasem on x
    @instagram Reels isn't even unique, the vast majority of its content are ones saved from TikTok. I highly doubt anyone will welcome the Shop tab, people have adapted to having Activity and New Post in the Navigation Bar so it's an unwelcome change.
  • @vishalshahis Vishal Shah on x
    Some big changes coming to Instagram! Proud that our team can continue to make updates like these to ensure that the app stays relevant. https://twitter.com/...
  • @bmorrissey Brian Morrissey on x
    I don't get Reels, but a shopping area should be massive. Instagram is the new mall. https://twitter.com/...
  • @ellismbeh @ellismbeh on x
    Changes likes this aren't based on guesses. Facebook believes in IGs power with Shop and Reels. Between Facebook's entire line of products - it will have all facets of WeChat covered. https://about.fb.com/...
  • @kyurieff Kaya Yurieff on x
    NEW this morning: Instagram unveils biggest changes to home screen in 10 years. It's betting big on Reels + shopping http://www.cnn.com/...
  • @chrismessina Chris motherfucking Messina on x
    Well, there it is. Instagram is now a full-on commerce app. Instagram will become the QVC of Gen Z. Continue to be impressed at Facebook's execution of the roadmap it set out, despite all the noise/complaints this year. #ConvComm #Reels https://t.co/OUDkkpsiil
  • @mosseri @mosseri on x
    This update represents how young people and creators are using Instagram and engaging with the world. This year we've seen an explosion in short, entertaining videos. We've also seen more people buying online and looking to creators for shopping recommendations. https://twitter.c…