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Product Management Analytics Question: Analyzing Facebook's declining Daily Active Users trend

Asked at Meta

15 mins

Facebook's DAU is decreasing 15% per week from the last 3 weeks. Find out why.

Product Success Metrics Hard Member-only
Data Analysis Problem-Solving Strategic Thinking Social Media Technology Digital Advertising
Social Media User Engagement Data Analysis Product Analytics Root Cause Analysis

Introduction

The sudden 15% weekly decrease in Facebook's Daily Active Users (DAU) over the past three weeks is a critical product success metric issue that demands immediate attention. To address this concerning trend, I'll employ a structured framework analyzing core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Framework Overview

I'll follow a simple success metrics framework covering product context, success metrics hierarchy, and strategic initiatives to diagnose and address the DAU decline.

Step 1

Product Context (5 minutes)

Facebook is a social networking platform that connects billions of users worldwide, allowing them to share content, communicate, and engage with friends, family, and communities. Key stakeholders include users, advertisers, content creators, and Facebook employees.

User flow typically involves:

  1. Opening the app/website
  2. Scrolling through the News Feed
  3. Interacting with posts (likes, comments, shares)
  4. Creating and sharing content
  5. Using messaging features

Facebook's broader strategy focuses on user engagement, data collection for targeted advertising, and expanding into new technologies like virtual reality.

Competitors include other social media platforms like Instagram (owned by Meta), TikTok, and Twitter. Facebook differentiates itself through its extensive user base and diverse features.

Product Lifecycle Stage: Facebook is in the maturity stage, facing challenges of user saturation and competition from newer platforms.

Software-specific context:

  • Platform: Web and mobile apps
  • Integration: APIs for third-party developers
  • Deployment: Continuous integration and deployment

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