Meta's Strategy to Revitalize Facebook for Gen Z: A New Product Push

Infotrading.io - Meta (NASDAQ: META) is embarking on a bold new initiative to rejuvenate its Facebook app, targeting the often elusive Gen Z demographic. As the social media landscape evolves, Meta aims to make Facebook a hub for young adults aged 18 to 29, offering them a dynamic platform to connect, shop, and stay abreast of the latest trends.

"In order to stay relevant, we have to build for the next generation of social media consumers ... Gen Z," said Tom Alison, head of Facebook, during a creator-centric event in New York City. "Our product roadmap is driven by the needs of young adults."

Despite its significant role in Meta's rise to tech dominance, Facebook has struggled to maintain its popularity among teens. According to Piper Sandler’s latest Taking Stock with Teens survey, only 32% of teens use Facebook monthly, compared to 80% for Instagram and 72% for TikTok. However, Alison believes Facebook holds untapped potential for young adults navigating pivotal life changes.

“Our research indicates that young adults frequently use Facebook during major life transitions,” Alison explained. “For instance, when moving into their first apartment, many turn to Facebook Marketplace. Similarly, they join college groups to meet new people. These activities are already happening on Facebook; we just need to better integrate them.”

Part of Facebook's strategy to attract Gen Z includes enticing content creators to the platform by enhancing its video capabilities through Reels and improving its search functionality. This approach seems to be yielding positive results.

Facebook has seen growth in the US among young adults for several consecutive quarters. Notably, users spend 60% of their time on Facebook watching videos.

Facebook faced a rare setback in Q2 2022 when monthly active users declined from 2.936 billion to 2.934 billion, sparking concerns about a downward trend.

However, the platform has rebounded, reporting growth each quarter from Q3 2022 through Q4 2023. The latest quarterly report did not specify monthly active Facebook users, but the trend indicates a positive trajectory.

Initially, there were concerns that the platform's updates might alienate older users, who have been a consistent demographic for Facebook. However, the enhancements have been well-received by both older users and the millennials who first adopted the platform when it launched in 2004.

“I do think Facebook has had unique staying power because we've always been willing to change,” Alison said.