Facebook says it isn't worried about younger teens spending less time on its social network. But in private, the company is carefully examining the appeal of SnapChat, WhatsApp, GroupMe, and other social networking apps that have captured the attention of teens in ways Facebook hasn't.
The company's research arm recently emailed a survey to selected Facebookers, asking about their use of eight teen-centric tools as it gathers participants for a focus group at its headquarters in Menlo Park, California. Silicon Valley web companies often use focus groups to explore opinions -- and Facebook already has signaled its interest in SnapChat by trying to acquire the photo-sharing service. But this survey shows Facebook's interest extends well beyond SnapChat, and it may be looking to change its operation in other ways as it tries to capture more mindshare among teens.
>This new survey shows that Facebook's interest extends well beyond SnapChat, and that it may be looking to change its operation in other ways as it seeks to capture more mindshare among teens.
Though executives like Sheryl Sandberg continue to say this isn't a big concern, Facebook has admitted that teens have cut back on daily use of its site, and it seems the kids are fleeing in part because the social network is thick with parents, relatives, and other hovering authority figures. The appeal of Snapchat and the like is they let teens easily share stuff in private with a relatively small group of friends. In some cases, messages even disappear after a certain amount of time.
Given Facebook's strong position among college students and other adults, its weakening position among teens won't threaten its bustling advertising business anytime soon. Indeed, the company just posted a record quarter, with revenue spiking 63 percent. But losing ground among teens could cost the company in the long term.
"We can see signals they understand that it's a challenge and that they're going to have to address it," says Tom Bedecarre, chairman of digital marketing agency AKQA, an outfit that helps businesses advertise on Facebook and other online services. "Facebook needs to create some channels into younger audiences."
The new survey (see below) looks like an effort to do so. It turned up in my email inbox recently, sent to the personal address associated with my Facebook account. It asked how frequently I use eight services, including Snapchat, free texting service WhatsApp, and Group chat system GroupMe as well as Facebook's own Messenger chat tool. It asked what kind of smartphone I own. And it wanted to know how often I access Facebook from home as opposed to "work or school." It also said I'd get a $100 Amazon gift card if I was selected for the 90 minute focus group--which apparently I wasn't.
It's too bad. Ever the know-it-all, I would have been happy to tell the company what it should do.
Build New Brands
Mark Zuckerberg has achieved his dream of making Facebook ubiquitous. Everyone -- or at least most everyone you'll meet online -- uses it. More than 1.2 billion people are in the House that Zuck Built. And that's a problem in the teen market. It means that Facebook isn't cool. The trick then is for the company to build separate brands that are cool. There are two ways of doing this. The company can leverage the Facebook brand or it can find new ones.
The template for buying a new brand is Instagram. After purchasing the tool for $1 billion in 2012, Facebook retained the name "Instagram" and gave the operation considerable autonomy. As a result, Instagram retained its teen-heavy audience. But now a new breed of app is capturing the teen market, so Facebook must repeat the play.
Of course, Facebook's efforts to buy Snapchat didn't work out. And other buys may not be an option. But if Facebook can't buy new brands, it can always build them. It has already created a SnapChat clone called Poke and released the tool as a standalone mobile app, just as it did with other tools like the new Paper news reader.
To re-capture younger users, Facebook needs to take the approach even further, creating all sorts of new apps under new brand names. The company will have to walk a fine line in how it integrates these networks with Facebook proper -- should same credentials work on both services? will universal logins scare off teens? -- but the benefits of building independent environments outweigh the headaches. By better engaging with teen users, Facebook can offer younger eyeballs to Madison Avenue in the short term and nudge teens toward its flagship product as they get older.
Keep Parents Away
Even as it launches new brands, Facebook must ensure they aren't invaded by adults. "Young people are more susceptible to saying: 'I don't want to be on the same place where my mom and my grandmother are,'" Bedecarre says.
Whether online or in the real world, teens don't want to hang out near their parents. Indeed, what makes teenagers act like teenagers is that they're trying to create an independent identity distinct from those who raised them. Facebook must find a way of giving teens their own space without appearing to exploit them, while minimizing bullying and dangerous behavior. That's not easy. But Facebook's roots lie in private social networks -- not completely public ones -- and over the years, it has developed a talent for handling this sort of delicate situation. It just needs a little more finesse.
Keep It off the Permanent Record
When trying to explain the success of ephemeral messaging apps like Snapchat, the press tends to focus on the lurid, pointing to naked pictures and sexts. But the bigger reason teens like these apps is that they need to keep their Facebook profiles pristine, lest they scare off college admissions officers, summer job hiring managers, or future romantic interests, all of whom have learned to vet people via Facebook. The need to escape this "permanent record" is why Poke embraced disappearing media, and it's why Facebook should continue down this road.
The prospect of teens sending each other often-racy ephemeral messages makes advertisers very nervous. But whatever Facebook loses in short-term ad revenue should be more than made up for by the long-term benefits of roping in loyal new users when they're teens.
Keep Changing
As anyone in the music or fashion business can tell you, teen tastes are finicky. Even if Facebook launches a Snapchat-scale hit tomorrow, there's a good chance it will need something fresher in a year or two. The ultimate challenge for Facebook is to keep evolving with changing tastes.
The good news is that Facebook is better equipped to do this than smaller and newer operations like Snapchat. With its core social network, its enormous staff, its twentysomething CEO, and its hefty bank account, it's well positioned to buy and build and explore all sorts new services as time goes on. In the end, Facebook is right to be concerned over the state of the teen market. It's right to carefully examine its options. But the future is well within its grasp.
