Meta & Children's Online SafetyIntroducing IG Marketing Insights
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Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 1 of 65 AMENDED Exhibit 31 PLAINTIFFS' OMNIBUS OPPOSITION TO DEFENDANTS' MOTIONS FOR SUMMARY JUDGMENT Case No.: 4:22-md-03047-YGR MDL No. 3047 In Re: Social Media Adolescent Addiction/Personal Injury Products Liability Litigation Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 2 of 65 tabbles META3047MDL-019-00068214-META3047MDL-019-00068214 EXHIBIT 19 META-GROSS Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 3 of 65 Document Provided in Native Format HIGHLY CONFIDENTIAL (COMPETITOR) ΜΕΤΑ3047MDL-019-00068214 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 4 of 65 Introducing IG Marketing Insights September, 2022 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 5 of 65 Agenda Note: Include summary & discussion point at start of each section • Context setting: Getting into the minds of today's teens • State of play: IG's opportunities & headwinds • Roadmap: What is IGMI doing to help? 2 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 6 of 65 Getting into the mind of today's teens 3 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 7 of 65 Evergreen teen needs Teen needs are a function of biological development Moral reasoning & perspective taking Social media apps can fill these evergreen teen jobs Connection → Interpersonal interaction helps teens feel close to others, find their tribe, and expand their horizons Identity formation → Teens try on new ideas, interests, & personalities with low commitment Discovery → Exposure to new ideas on social media helps teens develop & refine their interests & passions Novelty → Teens are hungry to learn and seek new experiences Entertainment → Exposure to new content Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 8 of 65 teen needs & behaviors 2 discovery expression connection non-teens self-actualization • deepening connection with established interests • keeping up with cultural happenings maintaining relationships • keeping up to date with family & friends teens • identity exploration & formation • values development • exploring and trying out new hobbies • values exploration • onboarding new connections around shared interests or values • sparking change • finding "your tribe” • deepening nascent relationships Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 9 of 65 Markers of today's teens Gen Z came of age in a unique time Repeated upheaval and crisis → TKTK Generational values are different for today's teens Political and social engagement → TKTK Social media natives → TKTK Authenticity over polish → TKTK Diversity, equity, and inclusion + TKTK Acceptance → TKTK 6 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 10 of 65 Where is IG today? Why are we losing PMF? 7 Instagram strengths Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 11 of 65 There are three main jobs consumers hire us for. Discovery, Connection, and Expression are the most durable and recognized benefits of Instagram which ladder to overall Brand Love and Favorability. They emphasize the importance of our heritage in creativity + connection, but are also reminiscent of the North Star framework our teams have been measuring since 2019 in the IG Brand Tracker. CONNECTION The Benefit & The Catalyst DISCOVERY (see creativity) A EXPRESSION (share creativity) Where people connect over the creative content they see and share 8 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 12 of 65 Who is MI? How will we help? 9 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 13 of 65 The Insights team is comprised of two complementary groups Marketing research We seek to be the sought-after experts in communicating the value of our brand and products to people Brand foundation Brand comms S Product marketing research Community Lab IGCL's objective is to understand the ways in which Instagram shapes-and is shaped by-culture. We do this by observing behaviors and trends on Instagram, and interpreting them through the lens our brand's value props of discovery, connection, and expression. POC: ████ POC: Aaron Anderson POC: Wendy Gross POC: ████ Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 14 of 65 In H2 Marketing Insights and Community Lab are supporting three outcomes Goal #1 Regain PMF and Relevance with Teens in the US Teens use Instagram Where We Are Parents of teen non-users do not think IG is ok for their children Teens' needs are shifting to Entertainment, and IG is not seen as the place for this Early teens don't think their friends are on IG or that IG is for them Where We Want To Be Parents think Instagram is ok for their teen children Teens see IG as a place for Entertainment Teens see IG as relevant to them and their needs Measurable Outcome Increase in safety sentiment that then drives early teen consideration and registrations Growth in usage of Reels and/or in fulfilling entertainment job #2 Establish IG as A Place for Connected Creativity Teens love Instagram Teens look to other platforms to be inspired by new ideas and express their creativity Teens see new ideas on IG and are comfortable adding their creativity into the mix - They feel IG is the place for connected creativity Increase sentiment for metric on connected creativity → long term impact on favorability and usage of IG 11 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 15 of 65 Lab slide 1: business outcomes The Community Lab is a team of researchers who are tasked with improving the cultural relevance and teen resonance of our... ☑ brand marketing integrated marketing • creative territory exploration & concepting • talent casting • aesthetic & content mechanics moodboarding • “entertainment” understanding / teen resonance marketing in product channel development strategy • creative & targeting strategy creator & content curation cultural marketing community marketing • interest community understanding & strategy • influential creator identification moments & cultural response • cultural sparks & trends • viral content & creators editorial & comms teen resonant creators • content theme provocations reels products & features consumer segments (teen vs. non- teen) • behavioral mimicry • inventory ecosystem understanding teen growth • new user interest picker feature development camera / AR effects Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 16 of 65 Lab slide 2: how we do it foundation Over the past 5 years, we've built a database called Atlas that organizes nearly 800,000 creators into an interest taxonomy. In collaboration with Central Interest Graph and Core Data Science, we've developed a new author-interest model, that predicts granular topics (n=~950) for more than 430m accounts, growing our coverage of organic US impressions from ~35% to 75%. This new model now powers our cultural insights toolkit. toolkit We've built a suite of tools to observe & analyze culture in real- time, at 3 different altitudes: community insights community teen relevance dash • community engagement dash creator insights creator dash: cultural influence & teen engagement content insights content visualizer • teen search dash team cultural insights & strategy the "what" and "why” • This team of analysts and strategists focus on making our cultural marketing & response more teen resonant. creative insights & strategy the "who" and "how" • This team of analysts and strategists focuses on ensuring our outbound and in-product campaigns are teen resonant. Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 17 of 65 Brand Comms: Campaign Development, Testing, and Measurement Campaign Goal Setting IG Labs + Campaign Briefing Phase 1: Insight & Inspo Explore problem + consumer insight Consumer Connects • Territory exploration Fuel Sessions Phase 2: Creative Expression Ad Production • Talent casting & creator inspiration • Content mechanics, aesthetics & cultural touchstones • Insight articulation • Key message clarity in execution IGMI • Refine key message + Big idea • Overall creative resonance Phase 3: IPSOS Ad Testing Ad Optimization Launch and Measure • Measure performance against IPSOS ad benchmarks (IG + Social Category Ads) 14 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 18 of 65 Phase 3 testing diagnoses creative on 4 dimensions including our campaign key measure: BELIEVABILITY KEY MEASURE Breakthrough Brand Linkage Message Pull Through (aided) 8 WHAT IT TELLS US Do people remember the ad? Do people remember the ad is from your brand? Is the intended message being communicated? ווי Believability WHY IT MATTERS The average consumer is exposed to multiple ads and product messages. We need our ads to be noticed. Brand Linkage is critical. It's not enough to entertain, build the category, or help a competitor. Do people understand what we are telling them? It's important the ad clearly delivers our intended message. How Believable is the following message? MPT + Believability help assess whether our creative will affect downstream Product outcomes and "higher" metrics L1 and L2/ Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 19 of 65 We had mixed success with our initial Yours to Make campaign focused on identity formation prompting a shift in our campaign strategy to focus on Entertainment and Discovery Yours to Make Creative Testing • Culture + Identity formation are lofty concepts that require a self-realization to land with consumers--this was an ambitious goal • • Identity formation message must be localized by market based on collectivist vs individualist cultures. Example: Expression is more difficult in Japan because of the focus on fitting in. (Source: Brand Platform Global Research Findings) Sharing perspective and identity formation are heavy topics. We need to find consumer language to de- pressurize. (Source: Phase 2 Creative Testing: Yours to Make) Yours to Make Campaign Measurement Young adults (18-24) were main driver of MPT across US/UK with small MPT lift among 25-34. We did not move teen metrics. Resonating with Teens (13-17) continues to be a challenge for our marketing (creative + messaging). For the second year in a row, brand linkage is a miss. Two-in-five who recalled the campaign in the US and nearly half in the UK, said that branding in the ads were unclear. (Source: Yours to Mke Full Measurement Read-out) Discovery Campaign Learnings to-date Our core insight (the fun of SFV is relating to friends) is highly resonant with teens but we heard that Reels content is a barrier to our campaign. (Source: Reels Campaign Ph 1 Creative Fuel Session) The term "entertainment" is broad and interpreted differently by age cohort-- perceptions of entertaining content differ even between 13-15 and 16-17. (Source: Entertainment Creative Fuel Session) Strong agreement among all users that IG is place for entertainment which encompasses more than just Reels. Our campaign pivoted to focus on the variety of entertainment IG offers (not just Reels). (Source: Entertainment Campaign Strategy) Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 20 of 65 Creative testing indicates three areas of opportunity Creative Insights Identify formation and culture are heady to communicate in campaigns. Brand Link is challenging because our branding assets are often found in other content on IG -> Literal direct language is most effective at landing campaign -> messages (Source: Guardrails for Creative Briefing) Historically our ad aesthetic has -> been polished and performative which could contribute to pressure to be perfect (Source: The Polish Problem) Opportunity Campaign key messages should be aligned with consumer behavior and perceptions. Ensure most recognizable IG US and brand assets appear prominently in ads (early is better in video ads) Avoid wordplay, puns, experimental language (e.g. Instagram is home of the entertaining) in favor of direct, unambiguous (So much to see on Instagram) Casting should include casting everyday actors and high resonance interest. Combine these ingredients in relatable ways (vs unexpected way) to help depressurize. Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 21 of 65 Insights and implications Users feel we put our needs ahead of theirs Brand Evolution Today's brand strategy of Pushing Culture Forward is interpreted in many ways, today it is undifferentiated, and led by competitors —TikTok and YouTube outperform IG as “a place to discover new ideas." Most importantly, our positioning was not grounded enough in a consumer benefit. IG is losing its identity. Consumers told us the product updates we made to compete aren't consumer- driven, feel borrowed from competition, and seem motivated by profit. They told us we lost sight of IG's primary benefit: Connection¹. "It [IG] definitely feels a lot more commercial with ads. And Shopping tab to make money. A lot of what's different is suggested accounts or posts. It's less like a way to connect with people, more like a way to get lost in content.” Older Teen, 16-17 19 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 22 of 65 Insights and Implications Building relationships over the content people see and share is the magic of Instagram Brand Evolution Connection is the heart and soul of what Instagram does and distinguishes us from other social apps Teens describe Tik Tok as a place for to be entertained alone, a lean-back behavior; getting lost in SFVs created by people they're unconnected with. However, teens describe Instagram as a place to actively engage or to lean-in with people ranging from acquaintances, to family and close friends, to public figures. Specifically, our magic is the spark at the intersection of Connection and Creativity--the content you Discover and content you create to Express yourself Teens use IG for Discovery and Expression as a means to strengthen and explore acquaintances, friendships, creators, and public figures. They discover, create, and share memes, conversations, inside jokes, giving them something to connect over with peers. Our job is to fuel behaviors that help users build Connection through Discovery and Expression. 20 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 23 of 65 Insights and Implications Creativity is part of our heritage, but we need to redefine what it means to be creative for the next generation Today, IG's creative spark is working to fuel Connection through Discovery At best, this creativity inspires people to try new things, go deeper with their interests on IG, or connect with others over creativity; 58% of all DM's are initiated over content. However, to deliver teen benefit we must fuel authentic connection and address performative pressures Teens came of age in an era characterized by social inequality and toxic positivity where authentic is increasingly hard to find. Teens want to use IG as a way to establish authentic connections. They are rejecting the "pressure to be perfect" and the insta-worthy millennial aesthetic. Our consumer facing positioning of creativity should lower the bar to participation by developing carefree, low-pressure methods of expression. Brand Evolution Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 UPDATED POSITIONING Page 24 of 65 Instagram is where creativity connects us A wide range of expressions that amuse, inspire, subvert & empower Bringing people [teens] together WHAT WE'RE FOR AND AGAINST For: the creative potential in everyone + CSN 7 Against: the pressure to be perfect WHO WE'RE FOR Creators with a 'little c' 22 Measurement Approach Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 25 of 65 There are three main jobs consumers hire us for. Discovery, Connection, and Expression are the most durable and recognized benefits of Instagram which ladder to overall Brand Love and Favorability. They emphasize the importance of our heritage in creativity + connection, but are also reminiscent of the North Star framework our teams have been measuring since 2019 in the IG Brand Tracker. Brand Evolution CONNECTION The Benefit & The Catalyst DISCOVERY (see creativity) EXPRESSION (share creativity) Where people connect over the creative content they see and share 23 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 26 of 65 Measurement Approach We have been and will continue measuring sentiment around the three main pillars. To narrow goals on the intersection of the three, we have the opportunity to adapt some of the metrics to better focus on creativity. Brand POV (L1) Brand Evolution Brand Goals (L1) Pillar Existing Metrics Adapted Goals (proposal) Need for adaptation • Place to explore new ideas [current north star] • Place to explore new ideas Discovery • Place to learn more about my interests Low • Customized to my interests and preferences Creativity • Helps you connect to your friends Connection Connects Us • Helps you to start new interactions with friends • Connect with friends over what's happening on Instagram Med • Helps you express yourself Expression • Helps you to share casual, everyday moments • Easy to be creative Med/High Foundation Well-being • Features that help create something fun to share • Comfortable being yourself Comfortable sharing Place to get support and encouragement from people • Comfortable being yourself • Comfortable sharing • Appropriate for teens Low 24 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 27 of 65 Measurement: Instagram currently trails YouTube and TikTok on discovery metrics, and TikTok for expression. Instagram Snapchat YouTube Tik Tok Brand favorability 63% 57% 91% 65% Place to explore new ideas [current north star] 33% 20% 66% 49% Discovery Place to learn more about my interests 29% 16% 65% 45% Customized to my interests and preferences 34% 23% 41% 45% Helps you connect to your friends 34% 44% 20% 34% Connection Helps you to start new interactions with friends Helps you express yourself 32% 32% 24% 37% 20% 19% 26% 39% Expression Helps you to share casual, everyday moments 36% 43% 23% 38% Features that help create something fun to share 35% 35% 38% 47% Comfortable being yourself 45% 44% 30% 36% Well-being Place to get support and encouragement from people 27% 23% 30% 40% There is pressure to look perfect 51% 44% 30% 36% Source:IG MI XBT Q2'22 Questions vary and include 5-point scales including "How much does..," "How well does..." See Brand Perception Statements. Asked if aware of brand; Instagram shown to all aware, other brands are sub-set of those aware; % top 2 boxes shown. Bases vary. Higher than IG Same as IG Lower than IG Measurement Approach Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 28 of 65 Marketing's role is to amplify and give voice to the Product truth. To fulfill this role, Marketing and Product should have shared vision of the brand measurement. Brand Evolution 26 Measurement Approach Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 29 of 65 Our brand taxonomy will adhere to two main principles: → Alignment with product priorities and business health goals Shared metrics across product and marketing will help ensure we build for the differentiation we aspire to communicate. → Metrics/Goals for both sentiment and behaviour outcomes Sentiment and behaviour metrics will be correlates. Behaviour metrics or proxies are more sensitive and product-bound than sentiment. They can help with short-term measurement, attribution and adoption of the taxonomy by product teams. Sentiment metrics will help with measurement of the long term health of the brand. Brand Evolution 27 LO Brand Health Change beliefs gradually L1 Brand POV Change beliefs gradually Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Brand Love / Favorability Creativity Connects Us * Page 30 of 65 L1 Brand Goals Change beliefs based on our efforts within each pillar What success looks like Discovery Sentiment: Explore new ideas ** Product: DAU / Sessions / active time spent on IG / VPVD (TBD) Consumers come to Instagram to get inspired and engage with content (e.g. by discovering new creators, reacting to content, leaving comments, saving it to collections) Connection Sentiment: Connect with people with shared interests over what is happening * Product: CDAU, CDAU PR (TBD) V Consumers come to Instagram to re-share and talk about the content they see. (e.g. by re-sharing and talking about it with their network in DMs and Stories) Expression Sentiment: Easy to be creative * Product: Organic Production PR (TBD) Consumers (Small "c" creators) come to Instagram to express themselves (e.g. by remixing and posting original lightweight content on feed, stories, reels) Note: Foundation Table stake needs TRACK for Value pillar GOAL for Trust pillar TEENS: Comfortable expressing themselves This is a simplified taxonomy view that focuses only on the funnel metrics under the Brand Love LO pillar. It does not include metrics that are part of the CAU LO (Brand Reputation) pillar. For a full taxonomy view, please see here. Sentiment and Product metrics are provisional. Once the taxonomy is aligned, we will follow up with an audit to evaluate where new sentiment metrics are needed and where we can use existing ones. We would also work with Product teams to identify and validate the correct product metrics. PARENTS: IG is appropriate for teens CREATORS: Comfortable sharing * To be developed ** Current brand north star 28 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 31 of 65 Insights ████ Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 32 of 65 This generation of teens... The new generation of teens have experienced upheaval like no other: Starting high school online and unable to see friends in person Social upheaval and reckoning with injustices of the past Shifting demographics and self-identification 01 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 33 of 65 The experiences of the new generation of teens have fostered new values of inclusion, authenticity, and self-love, in stark contrast to the highly polished, perfect, “Instaworthy” experience of millennials. 1. & 3. Cultural Decode, Sparks & Honey; FB YA strategy review. 2. Gen Z Crash Course, JUV Consulting 4. Young Adults, Identity & Culture 4. Identity today marketing insights 5. Inclusion playbook 75% of Gen Zers believe being politically & socially engaged is very important to their identity.1 62% of Gen Zers say increasing racial & ethnic diversity is good for society.2 48% 71% of Gen Zers identify exclusively as heterosexual, compared to 65% of Millennials.3 of Gen Zers believes people should be free to choose their preferred gender pronoun.4 01 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 34 of 65 Where we're going: Research agenda We have identified foundational questions that ladder directly into IG marketing outcomes and are working to establish a holistic research agenda for each Safety sentiment • Family center and guardianship tools: How do we support parents of teens on our platform? Well-being: What communities (e.g., interest- or identity-based communities) have outsized influence on teens, and how can we support those communities? Reels and entertainment • Entertainment (Reels): How and where are teens being entertained? Teen relevance • Private sharing (DM): How are teens connecting over content? Emerging culture • Own emerging culture (Brand): How do we better understand teen discovery, teen connection, and teen expression? • • Entertainment (Reels): What are barriers and triggers for creation among teens? Drive the demand side of the cultural flywheel (Creators): What creators are pushing culture forward for teens, and how are they doing it? Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 So after Millennials deemed things "Instagram worthy" - flooding our platform with perfectly curated singular images, Museum of Ice Cream, and this pink wall... Paul Smith 3:21 NILA CIENEGA BL Page 35 of 65 < W WILLOUG MELROSE AVE MELROSE DISTRICT Paul Smith Clothing store 39.8K posts Open until 7:00 PM See 10+ related guides View Information Top 7 HARR Recent X Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 36 of 65 Gen Z has answered with rejection, like every generation before. Their response to a perfected life is a messy, chaotic, raw experience. All sides of the story. Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 37 of 65 Regaining relevance with teens 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 38 of 65 Instagram has an existential crisis with Teens who are turning to other platforms. Retaining teens is key to the long term health of our business and our metaverse aspirations. Teen decline US Teen MAU 45 CM 40.CM US Teen users have 35.0M declined (9.7% MAU/11.6% DAU) since Sept-2020. 30.0M MAU is is currently 0.5% ahead of pre-COVID levels, 25.0M while DAU is 7.2% behind (source) 20.0M Teen MAP (people) saturation is at 75%, down 25.0M from 82% at its peak 24.5M (source) 24.0M 23.5M This is not only a US 23.сл problem; the same trend is 22.5M observed in several 22.0M developed countries 215M (source) but not is 21.0M developing markets (source) 20.5M 20.0M Mar-19 May-15 26-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 14-20 Sep-20 Nov-20 US Teen DAU Jan 21 Mar-21 May-11 Jan-19 Mar-19 May-19 -19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Sep-20 Nov-20 Jan 21 Mar-21 May-21 21 Sep-21 Nov-21 Jan 22 -21 Sep-21 Nov-21 Jan-22 12% Estimated US Teen MAP Saturation By Age & Gender 13 14 15 16 17 Female Male 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 39 of 65 75% of the decline is due to two major barriers: Parental concerns and teens choosing other apps which better meet their needs for entertainment and private messaging. Teen MAU Decline (-7.2% behind pre-COVID levels) is driven by changing needs among younger teen audience: 75% Lack of Consideration among Early teens (link) Most Common Barriers: (link) 1: Parents not ok with me using Instagram (40%) 2. Most of my friends don't use Instagram (33%) 3. Instagram isn't for people my age (27%) Shift in Teen Needs: Towards entertainment and private message. Over 50% of 13 year olds who have never used IG use TikTok (entertainment) While 33% use SnapChat (private messaging between close friends) Link 20% Default to Private = Fewer inbound follows The increase of defaulting to Private accounts has resulted in users receiving fewer inbound follows and resulting in following others less and having less content to consume. (link) 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 40 of 65 Parents don't think IG is ok for early teens From a survey to teens who had never used IG, about 40% of 13-15 year old respondents reported they have not created an account because their parents are not okay with them using Instagram. (source) Safety perception hasn't longitudinally changed, but we are expanding our understanding of this problem. Many parent respondents were less comfortable with their early teen joining IG than most other platforms. 100 How do you feel about your teen using each of the following apps? % Selected "Not okay to use" 76% 76% 75 67% 64% 61% 54% 53% 50 25 0 Instagram Discord - Unweighted data from US for parents of 13-15 year olds only - Error bars represent 95% confidence intervals. Teen Barriers to Joining instagram. Morelli-Vitousek. Dec 2021 39% 15% I WhatsApp Twitter Snapchat Tik Tok FB Messenger Facebook YouTube N = 1,161 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 41 of 65 Instagram does not seem to be as relevant to teens now as in the past Self-reported time spent US Teens report replacing time on Instagram with time 100 on Tik Tok (for entertainment) and Snapchat (for close % Selected connections) (source). Consideration Only 25% of teens consider IG as a place for entertainment (source). Instagram trails both YouTube and Tik Tok in consideration for entertainment (source) and Snapchat for messaging consideration (source). In the last year, have you started spending more time on other social media apps Yes instead of Instagram? Replacer No 77% 75 Non-Replacer 55% 49% 50 25 Teens 73% 60% 47% 14% 10% 6% 7% 6% 6% 0 Tik Tok Snapchat YouTube Facebook Twitter Reddit N = 6,599 68% 65% 54% 43% 38% 36% 34% 35% 32% 33% 31% 29% 25% 23% 6% 02 80% Share photos or videos Connect with people with Connect with a Connect with your Discover content celebrity, public best friends shared interests figure, etc. around your interests Watch short videos Want to be entertained Watch long videos Question: "Which of the following apps would you consider using the next time you...?" Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 42 of 65 Reels adoption is hindered by a mix of content quality and for with the IG use case Reels Funnel Analysis: Teens state there are 2 barriers to Reels consideration: Brand fit (e.g. I don't come to IG for SFV) and content problems (e.g. I don't see entertaining SFV on IG). • Today over 75% of teens consume Reels and nearly half do so intentionally. There is a production gap to adults but it's driven by teen accounts defaulting to private. Awareness and Familiarity of Reels is high (97%), but mid-funnel metrics (Favorability 57% and Consideration 64%) are lower. There are two barriers to Reels consideration: Brand fit and content problems 1. 1. Brand Fit is the largest single barrier at 60% which stems from a mismatch between the jobs teens turn to IG for vs. what they expect from SFV (lean-back). Teens come to IG to check-in with friends and interests they follow while they turn to SFV as a way to consume fun, entertaining content. Content: There are multiple content-related barriers that when combined pose the biggest challenge to winning over teens. 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 43 of 65 We have identified foundational research questions to better understand our opportunities to regain product market fit with US teens Meeting shifting teen needs will increase teen acquisition Improved sentiment around safety will drive consideration of Instagram Entertainment (Reels): How and where are teens being entertained? • Private sharing (DM): How are teens connecting over content? • Well-being and safety tools: What communities (e.g., interest- or identity- based communities) have outsized influence on teens, and how can we support those communities? • Family center and guardianship tools: How do we support parents of teens on our platform? 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 44 of 65 Establish IG as a place for emerging culture 03 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 45 of 65 Culture happens when teens absorb culture, remix it, and express it in a way that alters its trajectory. The act of creativity, enabled by our platform, is the bow-wave of culture, and our continued cultural relevance depends on teens' ability to see, shape and share on our platform. DISCOVERY (SEE) Culture provides us things that entertain, inform and inspire new music, style trends, interest-based innovation and excellence, surprising and entertaining interest niches. CULTURE CONNECTION (SHAPE) Culture is the shared context that enables connection and deeper relationships. Smaller spaces are also where people are free to add their creativity to the mix and reshape culture into something new. EXPRESSION (SHARE) Broadcasting your mood, personality, interests-which in turn actively contributes to and shapes culture 43 03 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 46 of 65 We synthesized insights to articulate HOW culture is created on our platform What is emerging culture? Qualities of Emerging culture are newness, expansiveness and experimentation Foundational Learning • Newness and change: Emerging culture is dynamic and exposes new ideas and behaviours. • Expansiveness: Emerging culture challenges the culture that already exists, and expands people's horizons as to what is possible or accepted. • Experimentation: Emerging culture thrives in an atmosphere that is open and creatively free How Does emerging culture happen? Culture manifests through teens' creativity and passion for expressing their identity through style, music, art and sports. HUMOR @johnrusanov STYLE @ghostle DO YOU LIKE WATER? GAMING @shelbygraces Key Insight When does emerging culture happen? Emerging culture often happens when Teen passions intersect with generational value. The new generation of teens have experienced upheaval like no other. They embrace values of inclusion, authenticity, and self-love which exist in stark contrast to the highly polished, perfect, Instaworthy experience of millennials. Tren d as of now VS. Emerging Culture Future-focused & expansive Colorful eye bags Body Positivity 44 03 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 47 of 65 Our recent research with teens told us the pressure to be perfect is an ubiquitous issue that impacts their Well-Being and their production on the platform DISCOVERY [SEE] Pressure Pressure CULTURE EXPRESSION [SHARE] CONNECTION [SHAPE] The pressure to be perfect disrupts the cultural flywheel with teens. • The pressure to be perfect is an ubiquitous issue that teens face. Three-in-five teen respondents say they've experienced social comparison, and 27% say Instagram makes their experience of social comparison worse. • Teens told us the pressure to be perfect leads to highly pressurized, low-frequency posting. • 71% of teens say it's important for IG to support people who experience social comparison. • The two primary sources of pressure to be perfect are fear of judgement and high bar for content. Sources: Youth & Well-Being Narrative (June 2022); Well-Being Narrative Research (Oct 2021); Social Comparison on Instagram (Oct 2020); Hard Life Moments Survey (Topline) Covid Edition (May 2020); Teen Mental Health Deep Dive (Oct 2019); Expression and Authenticity (Aug 2019); Talking about safety on Instagram (May 2019); Teen Well-Being 45 Foundational research (Dec 2018) 03 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 48 of 65 To support the marketing goal of establish Instagram as a place for emerging culture, we will be working on these foundational questions Helping teens explore their creativity through emerging culture will have impact on consideration of IG • Own emerging culture (Brand): How do we better understand teen discovery, teen connection, and teen expression? • Entertainment (Reels): What are barriers and triggers for creation among teens? • Drive the demand side of the cultural flywheel (Creators): What creators are pushing culture forward for teens, and how are they doing it? 03 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 49 of 65 Many parent respondents were less comfortable with their early teen joining IG than most other platforms. 100 How do you feel about your teen using each of the following apps? % Selected "Not okay to use" 76% 76% 75 I I 67% 64% I 61% I 54% 53% I I 50 39% 25 0 Instagram Discord - Unweighted data from US for parents of 13-15 year olds only - Error bars represent 95% confidence intervals. Teen Barriers to Joining Instagram, Morelli-Vitousek. Dec 2021 15% I WhatsApp Twitter Snapchat Tik Tok FB Messenger Facebook YouTube N = 1,161 45.0M 40.0M 35.0M 30.0M 25.0M 20.0M Jan-19 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 50 of 65 US Teens MAU & DAU declined significantly since H2-2020 US Teens MAU declined -9.7% since Sep-2020 and is currently 0.5% ahead of pre-COVID levels Jul-19 Nov-19 Jan-20 US Teen MAU Nov-20 Jan-21 Mar-21 May-21 Nov-21 Jan-22 25.0M 24.5M 24.0M 23.5M 23.0M 22.5M 22.0M 21.5M 21.0M 20.5M 20.0M Jul-19 US Teens DAU declined -11.6% since Sep-2020 and is currently -7.2% behind pre-COVID levels US Teen DAU Nov-19 Sep-21 Source: US Teens State of the Union 3/10 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 51 of 65 We estimate that Teen MAP (People) saturation is at 75%, down from 82% at its peak. 100% 90% Significant headroom 80% among Early Teens 70% 60% 50% 40% 30% 42% 20% 10% 0% 13 58% 14 Estimated US Teen MAP Saturation By Age & Gender 76% 15 98% 99% 80% 70% 16 17 Female * This is lower than previously thought. We spent significant time evaluating many methodologies to land at this estimate. Saturation by state is available in the appendix. It shows we are less saturated in Rural areas. Male Source: US Teens State of the Union 3/10 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 52 of 65 This is not only a US problem. The same trend is observed in several developed countries. United States New US Stated Age Teen Primary Accounts Daily Acquisitions 25,000 20,000 15,000 10,000 2021 vs 2020 gap in Registrations 5,000 F M A M J N JL A S 0 N D Month -2020 2021 2020 Covid Adj 35,000 30,000 25,000 20,000 15,000 10,000 5,000 GB+ES+IT+DE+FR+CA+AU New Developed Countries (Exc. US) Teen Primary Accounts Daily Acquisitions 0 J F MA M J -2020-2021 A S 0 N D -2020 Covid Adj Source: US teen decline sprint Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 53 of 65 In developing markets, we do not see this problem, as Reg is flat y/y. In India, growth continues to accelerate, due to TT ban & IG Paid Ads. 350,000 300,000 250,000 200,000 150,000 100,000 50,000 Developing Countries (exc. India) New Developing Countries (Exc. IN) Teen Primary Accounts Daily Acquisitions 0 J F M A M J J A S 0 N D -2020 -2021 India New India Teen Primary Accounts Daily Acquisitions 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 More registrations in 2021 than 2020 20,000 0 J FMA M J J A S 0 N D 2020 2021 Source: US teen decline sprint Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 54 of 65 Two major barriers to teens joining Instagram Teens are finding IG less relevant 1. Favorability of IG among US teens has dropped from 72% in 2020 Q3 to 63% at end of 2021 Q4 1. From a survey to teens who had never used IG, 33% of early teens reported that they have not created an account because most of their friends don't use IG, and over half think their friends neither like nor dislike Instagram. (link) Higher confidence as there is longitudinal change in favorability scores Parents don't think IG is ok for early teens From a survey to teens who had never used IG, about 40% of 13-15 year old respondents reported they have not created an account because their parents are not okay with them using Instagram. (link) Lower confidence as safety perception hasn't longitudinally changed Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 55 of 65 Today, only 25% of teens consider IG as a place for entertainment or SFV, compared to ~60% for TikTok and Youtube. They primarily see IG for legacy attributes like “sharing photos or videos” and “connecting with friends". IG's baseline consideration for Entertainment and SFV is ~25%. Given this low baseline we see an opportunity to strengthen associations with video and entertainment jobs Consider App for Activity Among Teens (Among those Aware of IG) 68% 65% 54% 43% 36% 34% f 32% 38% 35% 33% 31% 29% 25% 23% 6% 80% Share photos or videos Connect with Connect with a Connect with your Discover content Watch short people with celebrity, public best friends shared interests figure, etc. around your interests videos Want to be Watch long videos entertained Question: "Which of the following apps would you consider using the next time you...?" Source: Reels Sentiment Tracker Q4'21 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 56 of 65 Problem #1 Culture Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 57 of 65 Culture happens when teens absorb culture, remix it, and express it in a way that alters its trajectory. The act of creativity, enabled by our platform, is the bow-wave of culture, and our continued cultural relevance depends on teens' ability to see, shape and share on our platform. DISCOVERY (SEE) Culture provides us things that entertain, inform and inspire new music, style trends, interest-based innovation and excellence, surprising and entertaining interest niches. CULTURE CONNECTION (SHAPE) Culture is the shared context that enables connection and deeper relationships. Smaller spaces are also where people are free to add their creativity to the mix and reshape culture into something new. EXPRESSION (SHARE) Broadcasting your mood, personality, interests-which in turn actively contributes to and shapes culture 56 01 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 58 of 65 Culture happens along a spectrum. Emerging culture is where we focus. It is new and creates change as it becomes more widely adopted, expanding into the mainstream. Trend Fast-moving, attention grabbing, and entertaining, but quick to fizzle out Mainstream Culture Emerging Culture Niche Culture Small fandoms, obscure aesthetics, or taboo topics which aim to be exclusive New innovations, ideas, or movements that spark emotional response and change (cit.) Emerging culture challenges but is open and welcoming. The "norm” in a society and is adopted by mainstream and well- known celebrities Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 59 of 65 We synthesized insights to articulate HOW culture is created on our platform What is emerging culture? Foundational Learning How Does emerging culture happen? Key Insight When does emerging culture happen? Qualities of Emerging culture are newness, expansiveness and experimentation • Newness and change: Emerging culture is dynamic and exposes new ideas and behaviours. • Expansiveness: Emerging culture challenges the culture that already exists, and expands people's horizons as to what is possible or accepted. • Experimentation: Emerging culture thrives in an atmosphere that is open and creatively free Culture manifests through teens' creativity and passion for expressing their identity through style, music, art and sports. HUMOR @johnrusanov STYLE @ghostle DO YOU LIKE WATER? GAMING @shelbygraces Emerging culture often happens when Teen passions intersect with generational value. The new generation of teens have experienced upheaval like no other. They embrace values of inclusion, authenticity, and self-love which exist in stark contrast to the highly polished, perfect, Instaworthy experience of millennials. Tren d as of now VS. Emerging Culture Future-focused & expansive Colorful eye bags Body Positivity 58 01 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 60 of 65 Our recent research with teens told us the pressure to be perfect is an ubiquitous issue that impacts their Well-Being and their production on the platform DISCOVERY [SEE] Pressure Pressure CULTURE EXPRESSION [SHARE] CONNECTION [SHAPE] The pressure to be perfect disrupts the cultural flywheel with teens. • The pressure to be perfect is an ubiquitous issue that teens face. Three-in-five teen respondents say they've experienced social comparison, and 27% say Instagram makes their experience of social comparison worse. • Teens told us the pressure to be perfect leads to highly pressurized, low-frequency posting. • 71% of teens say it's important for IG to support people who experience social comparison. • The two primary sources of pressure to be perfect are fear of judgement and high bar for content. Sources: Youth & Well-Being Narrative (June 2022); Well-Being Narrative Research (Oct 2021); Social Comparison on Instagram (Oct 2020); Hard Life Moments Survey (Topline) Covid Edition (May 2020); Teen Mental Health Deep Dive (Oct 2019); Expression and Authenticity (Aug 2019); Talking about safety on Instagram (May 2019); Teen Well-Being 59 Foundational research (Dec 2018) 02 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 61 of 65 These value exist in stark contrast to the highly polished, perfect, Instaworthy experience of millennial 1. & 3. Cultural Decode, Sparks & Honey; FB YA strategy review. 2. Gen Z Crash Course, JUV Consulting 4. Young Adults, Identity & Culture 4. Identity today marketing insights 5. Inclusion playbook 75% of Gen Zers believe being politically & socially engaged is very important to their identity.1 62% of Gen Zers say increasing racial & ethnic diversity is good for society.2 48% 71% of Gen Zers identify exclusively as heterosexual, compared to 65% of Millennials.3 of Gen Zers believes people should be free to choose their preferred gender pronoun.4 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 62 of 65 Sharing is smaller spaces: Biographical sharing to large audience is a thing of the past. To retain the next generation of users, IG must adapt SHARING IN SMALLER SPACES WITH LESS PRESSURE TO BE PERFECT: Social media has evolved to more and more private spaces. This is especially ture for teens. 23% of US teen DAU share stories vs. 15% of non-teen; Teens send 23 messages per day vs. 6 for non-teens [link]. Close friends use case is shifting to SnapChaT 63 Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 63 of 65 To identify opportunities within cultural flywheel, we have identified foundational questions within each pillar of the 'see,' 'shape,' 'share' framework See + Shape + Share Culture • How and where are teens being entertained? • What creators are pushing culture forward for teens, and how are they doing it? • What communities (e.g., interest- or identity-based communities) have outsized influence on teens, and how can we support those communities? • How do we support parents of teens on our platform? • How are teens connecting over content? • What tools and techniques are teens using to express themselves? • What are barriers and triggers for creation among teens? • How do we better understand teen discovery, teen connection, and teen expression? • What forces and trends will change how young people discover, create, and connect in the future? Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 64 of 65 Across FCI markets, parents who are IG users are significantly more likely to think IG is appropriate for teens than parents who don't use the app 100% 75% 47% 50% 4241% 37% 3333% 34% 32% 54% 49% 24% 22% 25% 21% 20% 17% 18% 18% 15% 14:1.4% 0% Source:IG MI XBT Q2 22 Question: "Which of the following apps or websites do you think are appropriate for teens ages 13- to 15-years-old to use? Select all that apply." % selected Instagram shown. Difference between Parents on Instagram and Parents not on Instagram are significant at 95% confidence level. Users are those who self-report usage in the past 30 days. Base sizes in speaker's notes. Data with n<50 is not shown (insufficient parent non-users in Brazil) 50% 48% 36% 32% 2524% 14% 9% 8%7% Parent IG users Non-parent IG users Parent IG non-users Non-parent IG non-users Case 4:22-md-03047-YGR Document 2885-15 Filed 03/26/26 Page 65 of 65 In the US, this pattern holds across multiple social media apps - adults who use each app are more likely to say it's appropriate than those who don't 100% Source:IG MI XBT Q2 22 Question: "Which of the following apps or we shown. 75% 50% 42% 41% 54%* 45% 38%* 54% 51% 48% 23% 24% 25% 18% 19% 16% 14% 14% 0% Differences between users and non users are significant at 95% confidence level, *Difference between Snapchat parents and non-parents is significant at 95% confidence level Users are those who self-report usage in the past 30 days. Base sizes in speaker's notes. Data with n<50 is not shown (insufficient parent non-users in Brazil) مل Tik Tok Parent users of app Non-parent users of app Parent non-users of app Non-parent non-users of app