Meta reports strong AI-driven gains in engagement, video views and ad performance
Q4 2025 results show growth in Reels, Threads and messaging as company expands AI tools across platforms
Meta reported significant growth in user engagement and advertising performance across its platforms in the fourth quarter of 2025, driven by increased integration of artificial intelligence.
The company said updates to Facebook’s feed and video ranking systems lifted views of organic posts by 7%, while time spent watching video in the US grew at a double-digit rate year-on-year.
Reels surfaced on Facebook increased by more than 25% compared with the third quarter, and original content accounted for 75% of recommendations on Instagram, up 10 percentage points from the previous quarter.
Threads saw a 20% increase in time spent following platform optimisations in the period.
Meta said AI-driven translation tools are now available in nine languages, with hundreds of millions of users watching dubbed videos daily. The company plans to expand language coverage in the coming year.
Within its Meta AI division, daily users generating media content tripled compared with the same period in 2024. Nearly 10% of daily Reels views now come from content created using its Edits tool.
Meta began testing a business assistant powered by Meta AI with advertisers in the fourth quarter and plans to roll out the service more broadly.
Its video generation tools reached a combined revenue run-rate of $10 billion, growing at nearly three times the rate of overall advertising revenue.
The company’s new attribution model increased incremental conversions by 24% and achieved a multi-billion-dollar annual run-rate within seven months of launch.
Meta said it doubled its use of graphics processing units to train its Generative Ads Recommendation Model and adopted a new architecture that enabled deeper learning from user behaviour. The changes contributed to a 3.5% increase in ad clicks on Facebook and more than a 1% rise in Instagram conversions.
A run-time model deployed across Instagram's Feed, Stories and Reels lifted conversion rates by 3% in the quarter. Meta also reported a 12% improvement in ad quality, aided by Lattice model updates and backend optimisation.
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Click-to-message advertising in the US grew by more than 50% year-on-year. Paid messaging on WhatsApp crossed a $2 billion annual run-rate.
Early deployments of Business AI in Mexico and the Philippines generated over one million weekly conversations, with further expansion planned in 2026.
The Recap
- AI lifted engagement, ads performance and messaging in 2025.
- Video generation tools reached $10 billion combined revenue run-rate.
- Business AIs had over one million weekly conversations in markets.
