What would you do if Facebook Stories engagement increased but Newsfeed engagement decreased?

Introduction

The trade-off we're examining is the increase in Facebook Stories engagement coupled with a decrease in Newsfeed engagement. This scenario presents a complex challenge involving two key features of the Facebook platform. I'll analyze the situation, propose hypotheses, and develop a strategic approach to address this trade-off.

Step 1

Clarifying Questions (3 minutes)

• What's the magnitude of the engagement changes for both Stories and Newsfeed?

• Why it matters: Understanding the scale helps prioritize our response.
• Hypothetical answer: Stories engagement up 20%, Newsfeed down 15%.
• Impact: A significant shift would require more immediate action.

• Are these changes consistent across all user segments or localized to specific groups?

• Why it matters: Identifies whether this is a global trend or a segmented issue.
• Hypothetical answer: More pronounced among younger users (18-24).
• Impact: May need to tailor our approach for different demographics.

• Has there been any recent product change that could have influenced this shift?

• Why it matters: Helps identify potential causes for the engagement changes.
• Hypothetical answer: Recent algorithm update prioritizing Stories in user feeds.
• Impact: Might need to re-evaluate the algorithm change.

• How has this impacted our advertising revenue?

• Why it matters: Assesses the business impact of the engagement shift.
• Hypothetical answer: Slight decrease in Newsfeed ad revenue, offset by Stories ad growth.
• Impact: May influence our prioritization of Stories vs. Newsfeed development.

• What's the current ratio of daily active users (DAU) for Stories vs. Newsfeed?

• Why it matters: Provides context for the relative importance of each feature.
• Hypothetical answer: 60% Newsfeed DAU, 40% Stories DAU.
• Impact: Helps determine if we're seeing a fundamental shift in user behavior.