Facebook’s Instagram Problem Building Media Strategy In A Fragmented Audience World

Mark Mulligan

February 2018

In December 2016 Mark Zuckerberg announced that Facebook was embarking on a path to become a media company, but a media company unlike any other. More than one year on, Facebook’s metrics are revealing just how important this strategy is going to be for the company’s outlook. In 2017 Facebook reported a slight drop in daily active users (DAUs) in the US and Canada. Although Facebook constructed a compelling narrative for how this was a byproduct of it cleaning up the user experience, the underlying factor is more profound: Facebook’s messaging apps are stealing Facebook’s core audience.

Companies and brands mentioned in this report: Facebook, Facebook Messenger, Instagram, Snapchat, Twitch, WhatsApp, YouTube

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