Meta & Children's Online SafetyEmail: 2017 Teens Strategic Focus (Oct. 27, 2016)
Raw text
Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 1 of 25 AMENDED Exhibit 154 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 Message From: Document 2885-60 Filed 03/26/26 Page 2 of 25 [/O=THEFACEBOOK/OU=EXTERNAL (FYDIBOHF25SPDLT)/CN= 10/27/2016 12:15:18 AM Sent: To: Chris Cox [ 1; Mark Zuckerberg n]; Ronan Bradley [ ; Kang-Xing Jin ; Robert Chen Subject: ]; Alex Schultz [ Re: Core App: H1 Teens Lockdown Goals / Plan Review Attachments: Teens 2017-10.27 Zuck Review vFinal.pdf Mark, 1; Andrea Besmehn (Meta) Zuckerberg Exhibit 25 3.27.25 mlir exhibitsticker.com Attached are the materials for tomorrow's discussion on teens strategy and goals for 2017. We're about 7 weeks into the Understand process that we kicked off at the beginning of September, so the data, conclusions, and product concepts presented here are initial rather than final. We expect to significantly evolve our thinking over the coming month. We've focused this conversation on the key 2017 bets that we believe are most likely to set us up for success with teens and kids. We're currently discussing how we'll partner with multiple FBF teams, allocate H1 resources, and set H1 goals. Your feedback on our current thinking will help us use the next 4-6 weeks to work toward the best projects and plans for January. Thanks, HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 META3047MDL-003-00134687 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 3 of 25 2017 Teens Strategic Focus Review 10/27/2016 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 META3047MDL-003-00134688 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 4 of 25 Our goals for this meeting Align on goals for teens Share initial research and align on key age and geo segments Share initial product proposals for feedback Identify key gaps to address over the next 4-6 weeks 2 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134689 • Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 5 of 25 H2 Timing leading to H1 Build Sept. 8: Kicked off age modeling, Understand sprint Now: Now: Nov. 22: Dec. 7: Dec 15: Jan 2: Feb: Understand work: Research, Data, Modeling, Legal Joint planning with partner teams Agree key project goals, partner teams, staffing Confirm plans at H2 reviews All Understand research + data lands Finalize product goals, build Age Affinity model live in deltoid/dash HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 3 ΜΕΤΑ3047MDL-003-00134690 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 6 of 25 Our 2017 Goal & Market Position 4 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134691 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 7 of 25 2017 Top-Line Goal • • Strategic goal: Time Spent Share 0000000 What percent of all <= 18 smartphone + tablet time is an FB experience? Operational metric: Aggregate Total Time Spent 50000000 0000000 e.g. "15 billion minutes/day across FB Family" Built from MAP * DAP/MAP * TS/DAP Total time is the product of participation and engagement - Rewards both Growth and Engagement wins Diverse projects can all be sized by contribution to time HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 META3047MDL-003-00134692 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 8 of 25 We estimate that we have 32% of global youth smartphone time spent Smartphone Daily Hours FBF Daily Hours United States 23M Android 60M IOS 83M Total 5.7M Android 7.6M IOS 13M Total Facebook Inc. Share 25% Android 13% IOS 16% Total Western Europe 36M Android 40M IOS 76M Total 10.4M Android 11.4M IOS 22M Total 29% Android 28% IOS 29% Total RoW 371M Android 59 M IOS 430M Total 131M Android 21M IOS 152M Total 35% Android 36% IOS 35% Total Note: Youth: <=18. Estimates are approximate based on a combination of Onavo and internal data. HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134693 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 9 of 25 The two key drivers of youth smartphone time spent are social and entertainment Millions of Hours United States Western Europe RoW Total (M hours) Social: Broad Sharing 22% 18% 23% 22% Social: Small Group 15% 19% 20% 19% Sharing Entertainment: Video 30% 30% 19% 22% YouTube Only 17% 22% 15% 16% Entertainment: Gaming 9% 13% 14% 13% Other 24% 21% 24% 23% Total (Daily Hours) 100% 100% 100% 100% Total (Daily Hours) 83M 76M 430M 589M Notes: (1) Youth: <=18. (2) Smartphone inclusive of iOS and Android. HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 7 META3047MDL-003-00134694 30 20 30 Αμι-14 50 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 10 of 25 Our MAP, DAP, and TS trends break out clearly by US, EU, and ROW 120% 100% 80% 60% 20% 0% Apr.16 Det-14 15 U.S. Teen MAP/Population 15 80% 75% 70% 65% U.S. Teen DAP/MAP GUX $5% 45% Jan-2 Apr15 Jul 15 Oct-15 16 Ap-15 Jul 15 Oct-16 U.S. Teen TS/DAP 75 Jul-1.4 OCT-14 Jan-15 Jul-15 Oct-15 Jan-16 Αμι-15 HIGHLY CONFIDENTIAL (COMPETITOR) Jul-15 51-400 S 60 30 20 10 Apr-14 20 时间 HSW 3509 15% 50% Oct-14 10% 80% 40% 20% D-14 Jan-15 Apr-15 WE Teen MAP/Population 15 WE Teen DAP/MAP 0-15 Jan-16 WE Teen TS/DAP META3047MDL RVOL003 Jan-1 Jul-15 D-15 C And 97-00 09 45x 80% 75% 70% 5996 Apr-16 Da-14 Jan 15 100% 80% 80% 20% MU sty Jul-1.5 ROW Teen MAP/Population Jan-LS Apr-2 ROW Teen DAP/MAP ROW Teen TS/DAP ST-430 Ly 16 91円 97-00 Jul-15 D-15 ΜΕΤΑ3047MDL-003-00134695 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 11 of 25 To win social time spent share, being #1 for each user is crucial Share of Total Daily Time Spent on Social Apps, US Android Teens 80% 70% 71% 53 min / day 60% 50% 40% 17 min / day 30% 20% 20% 10% 0% 1 2 3 7 min / day 7% 2% 1% www 4 5 Ordinal most-used social app per user Source: Onavo. Note: This analysis is based on 7-day average daily social app usage between 9/2-9/9/2016. While the data shown is for US teens, the trend is relatively consistent. across international markets. HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134696 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 12 of 25 Smartphone TS is approx. 26% of developed world youth* digital media consumption United States Western Europe ROW Tota Public Sharing 18.4 13.4 100.6 132 3 Private Sharing 12.5 14.3 87.6 114.4 Entertainment: 257 22.5 618 130 1 Video YouTube Onry Smartphon 26% TV 25.5% Entertain ment: 7.3 10.0 65 76.6 Gaming Other 20.6 16.0 101.8 PBEL Total (Daily 76.1 ETED 591.8 Hours) PC 16% Tablet 15% Game Console 8.5% Other Digital Devices 9% * Youth = <=18. Figure is approximate for US and Western Europe. HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 10 ΜΕΤΑ3047MDL-003-00134697 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 13 of 25 Our current results are despite FB choosing • • not to serve the U13 segment All of our youth products are for 13-18+ In regulated markets we legally restrict access for underage youth We have not built and launched any products to serve the significant social and entertainment needs of younger kids Tablet and smartphone usage trends continue to push the age of first connected device and first social needs younger HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134698 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 14 of 25 U13: Significant tablet usage starts at 3-4 Tablet ownership, by age of child: 2010, 2012, 2013, 2014 and 2015 % 32 3 Aged 3-4 43 34 29 15 18 13 7 22 4 1 2 2 Aged 5-7 Aged 8-11 26 43 45 Aged 12-15 wwwwwwww Source: UK data. Ofcom Children and Parents: Media Use and Attitudes Report. November 2015. Base: Parents of children aged 3-4 (688 in 2015) or 5-15 (1379 aged 5-15, 399 aged 5-7, 492 aged 8-11, 488 aged 12-15 in 2015) - significance testing shows any change between 2014 and 2015. Note: Ofcom was established in the British Communications Act of 2003 as "the independent regulator and competition authority for the UK communications industries." 12 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134699 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 15 of 25 U13: Smartphones dominate from age 10 Figure 12: Smartphone ownership, by age of child: 2015 100% 80% 60% 40% 20% %0 Smartphone dominance over non-smartphones Age 3 Age 4 Age 5 Age 6 Age 7 Age 8 Age 9 Age 10 Age 11 Age 12 Age 13 Age 14 Age 15 Any mobile Smartphone Non- smartphone Source: UK data. Ofcom Children and Parents: Media Use and Attitudes Report. November 2015. Base: Parents of children aged 3-4 or 5-15 (371 aged 3, 317 aged 4, 160 aged 5, 129 aged 6, 110 aged 7, 171 aged 8, 118 aged 9, 94 aged 10, 109 aged 11, 164 aged 12, 108 aged 13, 97 aged 14, 119 aged 15) HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 EL ΜΕΤΑ3047MDL-003-00134700 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 16 of 25 U13: Social identity is an unmet need ages 5-11 Figure 48: Children who go online and have an active social networking site profile (2010, 2012) or social media profile or account (2014, 2015), by age * % * 43 43 40 37 0000 0000 3000 www Unmet Need ww wwwwwww ww ww ww w waw ww ww ww www www ww 27 22 20 23 000 79 80 76 71 5 5 2 2 2 3 2014 2015 2010 2012 2014 2015 2010 2012 2014 2015 2010 2012 2014 2015 2010 2012 2014 2015 Aged 3-4 א Aged 5-15 Aged 5-7 Aged 8-11 Aged 12-15 HIGHLY CONFIDENTIAL (COMPETITOR) Source: UK data. Ofcom Children and Parents: Media Use and Attitudes Report. November 2015. Base: Parents whose child ever goes online at home or elsewhere aged 3-4 (262) or 5-15 (1176 aged 5-15, 260 aged 5-7, 441 aged 8-11, 475 aged 12-15). Significance testing shows any change between 2014 and 2015. Question amended from 2014 to refer to social media sites or apps, previously referred to social networking sites. From 2014 responses are taken from the child aged 8-11 or aged 12-15 rather than the parent 14 META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134701 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 17 of 25 What We're Building & Why 15 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134702 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 18 of 25 • • • • • • For U13 kids, we should build Facebook One Goal: Grow MAP, DAP, and time spent among U13 kids A new Facebook app Visual & text messaging with parents and friends Feed of video and entertainment content Identity and platform login to power many partner games and apps Parents use FB Blue to message, share video, and manage kid account COPPA-compliant and launched in the U.S. ~August Rationale: - Market need is growing - Lack of clear winner - Our strength with parents is valuable - Platform login can accelerate adoption by making existing kid apps social and better May give us advantage to retain kids as they become teens HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 16 ΜΕΤΑ3047MDL-003-00134703 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 19 of 25 For RoW teens, we should build social video around teen stars • • • • • Goal: Increase RoW teen time spent Through partnerships, monetization guarantees, and better tools for creators, significantly grow the VoD content from teen stars on Facebook Initial pilots underway in Egypt and Colombia Targeting ~250 high quality new hours of inventory per country per month Time spent goals drive Q2 expansion to 10 MENA, LATAM, APAC countries Rationale: - - - - Teens love video of all kinds, and teen stars produce very engaging and social content Teens interact with these stars like their friends, generating intense social activity around the video content Our teen distribution strength in RoW makes us compelling to teen stars Relative lack of YT focus and low cost in RoW enables easier scaling of content HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 17 ΜΕΤΑ3047MDL-003-00134704 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 20 of 25 For U.S. teens, we should bet big on Instagram Direct + Stories to beat Snapchat • • Goal: Increase U.S. teen time spent Make Instagram Direct and Instagram Stories the best platform for U.S. teen messaging and sharing Rationale: ---- - - - Messaging + Stories is key to winning social for U.S. teens Instagram is our strongest platform with this audience This is hard but important There may be leverage in Instagram's strength around topical public content + teen interests HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134705 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 21 of 25 For U.S. Teens, we should focus Facebook on high school communal activities • • • • Goal: Grow MAP, DAP, and time spent among U.S. teens News and Events Group features for clubs & activities High school sports: live broadcast + was-live highlights to drive teen and parent social engagement during and after games Rationale: - - ------ High school is the key driver of U.S. teen social activity and occupies 6+ hours per day Research indicates that we have "FB" and "non-FB" high schools; tipping schools may be high impact Parents play a big role in extracurricular events and sports fandom -- leveraging where teens and parents are socially aligned may be a viable strategy HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 19 ΜΕΤΑ3047MDL-003-00134706 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 22 of 25 On a global basis, we should rebuild core Facebook to work better for teens • • • Goal: Retain MAP and DAP, grow teen time spent Shift feed towards an entertainment-focused surface to better match the interests and needs of teens Build a new media composer to create and share GIFs, memes, music clips, and more non-original self expression Build a new profile that de-emphasizes timeline and past sharing, and allows greater self-expression and personalization Use Stories + Direct for OBPS, and Feed for entertainment and media Build audience controls and help new FB teens manage their graph Rationale: - - Our entire product needs to evolve into a coherent sharing space that meets key teen needs of social + entertainment For teens, Social biases toward messaging and small-group sharing, and Entertainment benefits from the broad sharing and viral aspects of Feed HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 20 META3047MDL-003-00134707 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 23 of 25 Summary: Our big 2017 bets Social U13 Kid messaging with parents and peers Teens Win @ Messaging + Stories High School Communities Entertainment Kid Video & Entertainment Foundational Facebook Kid Account + Work Platform Login Video that drives social engagement - Teen Video Stars Entertainment-focused Feed & composer Clean Graph for new FB & IG teens that stays clean Repair Graph for existing FB & IG teens HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 21 ΜΕΤΑ3047MDL-003-00134708 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Things we don't know yet Page 24 of 25 How much emphasis on FB vs. IG for teen Stories + Direct? • • If we pivot FB toward entertainment, are we OK with OBPS impact? U13 people problem Research is in progress • • • IG or WhatsApp or Flash for RoW messenger - how can we help? How important is tipping U.S. high schools? It's unclear how Messenger can help - everywhere but not 1st anywhere 22 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 META3047MDL-003-00134709 Case 4:22-md-03047-YGR Document 2885-60 Filed 03/26/26 Page 25 of 25 Discussion 23 HIGHLY CONFIDENTIAL (COMPETITOR) META3047MDL_RVOL003 ΜΕΤΑ3047MDL-003-00134710