Meta’s Q2 earnings made one thing crystal clear: video is no longer just a creative choice — it’s a growth engine. Instagram video time spent grew by 20% year-on-year globally, and Facebook video consumption in the US rose by the same amount. Behind this surge is Meta’s AI, surfacing relevant video content to users and increasing the time they spend engaging.

For advertisers, this isn’t just an engagement story. It’s about performance. Here’s what you need to know.

1. AI-Powered Creative Diversification

Meta calls this Video Generation 2.0. With automation playing a bigger role, having a diverse creative library is one of the most effective ways to unlock incremental reach and conversion. By uploading multiple variations — different themes, hooks, and formats — you give Meta’s AI the inputs it needs to find the right audience at scale.

Even small and mid-size advertisers can now use Meta’s generative AI tools to animate images and build more video assets without extra production costs. Nearly 2 million advertisers are already using these features.

🔑 What to do now:

• Opt into Advantage+ creative and experiment with Meta’s video genAI.
• Don’t overthink polish — volume and variation matter more for AI optimisation than big-budget production.

2. Reels + Creators = Performance Lift

Reels are now table stakes. Meta reports 79% of surveyed users purchased a product after watching Reels — a staggering figure that makes short-form video unmissable for advertisers.

Pairing Reels with creator content is where we see real impact. Campaigns that integrate creators into always-on activity see 19% lower acquisition costs and 71% higher brand lift. Case in point: K-beauty brand Anua saw a 14.3-point lift in product awareness and 14.7x ROAS from creator-led Reels campaigns.

🔑 What to do now:

• Always build for vertical (9x16) with audio.
• Add Reels to your evergreen campaigns — Meta reports a 34.5% lower CPA than image ads.
• Use the Instagram Creator Marketplace to find authentic voices aligned with your brand.

3. Optimise for Business Value, Not Just Clicks

Meta’s latest updates to Value Optimisation and Value Rules let advertisers push the AI towards outcomes that matter most: higher LTV customers, specific demographics, or custom conversion priorities. German retailer Ulla Popken used Value Rules within Advantage+ to focus on high-value segments — and cut cost per new customer in half, while achieving 12x more incremental content views.

This is where AI-driven flexibility meets business strategy. By signalling what you value most, you give Meta’s AI the freedom to go wide, while ensuring it optimises towards meaningful outcomes.

🔑 What to do now:

• Set up Value Rules to steer budget towards high-value audiences.
• Layer this with your creative diversification and Reels strategy for full-funnel growth.

The Bottom Line: The Video-First Future

Meta’s message is clear: the future of advertising is video-first, AI-enabled, and creator-driven. To stay competitive, advertisers need to build for vertical video, diversify creative, integrate authentic creator content, and guide Meta’s AI to optimise for business value.

At Stellar, we’re already helping brands turn these principles into growth — designing test-and-learn frameworks around Reels, Advantage+ creative, and Value Optimisation to make Meta video not just a content format, but a performance lever.