Suppose you're the PM for Facebook Watch and ran an ad campaign to get more users. The customer acquisition cost was $8. How would you compute if this campaign is worth continuing?

Introduction

To effectively evaluate the success of Facebook Watch's ad campaign, we need to analyze its customer acquisition cost (CAC) in relation to the value generated by new users. I'll follow a structured framework that covers core metrics, supporting indicators, and risk factors while considering all key stakeholders.

Step 1

Product Context

Facebook Watch is a video-on-demand service integrated into the Facebook platform. It offers a mix of user-generated content, licensed programming, and original productions. The service aims to keep users engaged within the Facebook ecosystem while competing with other streaming platforms.

Key stakeholders include:

• Users: Seeking entertaining content and social viewing experiences
• Content creators: Looking for audience reach and monetization
• Advertisers: Targeting engaged viewers
• Facebook: Aiming to increase user engagement and ad revenue

User flow:

1. Discovery: Users find Watch content through their feed, search, or recommendations
2. Viewing: Users consume video content, potentially interacting through comments or reactions
3. Sharing: Users may share videos with their network, expanding reach

Facebook Watch fits into Meta's broader strategy of increasing user engagement and time spent on the platform. It competes with YouTube, TikTok, and traditional streaming services for viewer attention.

Product Lifecycle Stage: Growth phase - Facebook Watch is established but still expanding its content library and user base.