2 trillion hours on social media apps. That’s a big number globally and 18 percent higher than a year ago period.
Today’s data supports my continued view that app users will continue to grow their usage of entertainment-based apps.
This view has much to do with whether Tik Tok is taking share from other apps or if the pie is growing.
Global time spent on social media apps continues to rise rapidly. Various studies highlight that the average person spends over two hours daily on social media platforms, a significant increase from just a few years ago.
Today’s data of over 2 trillion hours is nearly 100% higher than 2019 levels.
Potential Investment Implications
From an investment perspective, I believe that there is more growth in the pipeline. In previous data newsletters, I shared how shockingly under penetrated internet adoption remains. Also, new formats such as Virtual Reality / Augmented Reality and creative tools such as Canva, Adobe, Figma and others are opening up the door to new content mediums.
While social media and entertainment apps feel as if they have reached maturity, we know that when things are digitally native, the boundary for growth is somewhat endless.
This week’s earnings report from Netflix is a good illustration of this. A company that saw covid lockdowns bring in record levels of new users is still finding ways to grow and gain viewership.
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.