How would you Monetize Facebook Messenger? | Meta PM Interview
Product Improvement - Meta Product Manager Interview: How would you Monetize Facebook messenger? - Asked at Meta, Google Adobe, Microsoft.
The question is about monetizing Facebook Messenger. This is a great question, given Messenger's massive user base and deep integration within the Meta ecosystem. To structure my approach, I'll use the following framework: Product description, clarifying Questions, defining the Goal, identifying User segments, understanding their Pain points, proposing Solutions, Evaluating those solutions, defining Metrics, and finally, Summarizing.
Step 1: Describe the Product
"Facebook Messenger is a globally popular instant messaging application and platform, originally developed as Facebook Chat in 2008 and released as standalone apps in 2011. It allows users, primarily those with Facebook accounts but also standalone users, to connect through text messages, voice calls, video calls (including group calls via Messenger Rooms), and share various media like photos, videos, stickers, and GIFs.
Key aspects include:
Core Function: Real-time communication between individuals and groups.
Integration: Deeply linked with Facebook and Instagram, allowing cross-app communication.
Features: Beyond basic messaging, it includes features like reactions, chat themes, AR filters, games, polls, location sharing, and importantly, interactions with Businesses (Pages) for customer service, marketing updates, and automated bot interactions. Payments (P2P and potentially business transactions) are available in some regions.
Users: A vast, diverse global user base spanning all demographics, leveraging their existing Facebook social graph.
Platform: Available on iOS, Android, web browsers, and desktop applications.
Current Monetization (Acknowledged): Messenger already has some monetization, including 'Click-to-Messenger' ads on Facebook/Instagram leading users to chat with businesses, sponsored messages from businesses to users who have opted-in, and potentially ads within the Inbox feed or Stories in some regions. Businesses may also pay for access to the Messenger API for scaled communications.
It competes with apps like WhatsApp (a sibling product with a focus on privacy), iMessage, Telegram, Signal, WeChat, and others."
Step 2: Ask Clarifying Questions
Before diving into solutions, I'd like to ask a few clarifying questions to ensure I'm focusing correctly:
Are we primarily focusing on monetizing the consumer experience, interactions with businesses, or both?
Interviewer: Let's focus primarily on new ways to monetize the consumer side, but consider how business interactions might play a role.Should I focus on a specific region (like North America or Southeast Asia) or think globally?
Interviewer: Think globally, but be mindful of regional differences in feature adoption or regulation.Should these new strategies complement or replace existing methods like Click-to-Messenger ads or Business API fees?
Interviewer: Assume these new ideas should be additive and explore fresh avenues.Constraints: Are there specific constraints I should be aware of, such as maintaining parity with WhatsApp features, strict data privacy regulations beyond standard GDPR/CCPA considerations, or specific no-go areas like selling chat data?
Interviewer: Assume standard privacy best practices are paramount. Avoid anything that overtly compromises user trust or the core communication experience.Goal Emphasis: Is the primary goal immediate revenue generation, long-term strategic positioning, increasing user engagement through monetization, or something else?
Interviewer: Focus on sustainable revenue models that ideally also enhance user engagement or value.Platform Focus: Should I prioritize the mobile app experience?
Interviewer: Yes, let's focus on the mobile app.
Step 3: Define the Goal
Based on the product and clarifications, the primary goal is to develop new, sustainable revenue streams directly from the consumer usage of the Facebook Messenger mobile app globally, without significantly degrading the core communication experience or user trust.
My approach now will be to identify key consumer segments, understand their needs and pain points relevant to potential monetization, brainstorm solutions, prioritize them, and define how we'd measure success.
Step 4: List User Segments
Messenger serves a broad audience, but for consumer monetization, we can segment them based on usage patterns and demographics:
Social Connectors (Teens & Young Adults, ~16-25): Heavy users of group chats, media sharing, AR filters, stickers/GIFs. Highly influenced by trends, often interact with creators and brands they follow on FB/IG. Early adopters of new features.
Family & Close Friends Communicators (Adults, ~26-55): Use Messenger primarily to stay in touch with their core network. Value reliability, simplicity for core messaging, photo/video sharing. May use it for coordinating plans or interacting with essential businesses (appointments, customer service).
Casual Users (Older Adults, ~55+): Lighter usage, primarily for 1-on-1 or small family group chats. Value simplicity and ease of use above all. Less likely to explore complex features.
Power Users / Community Builders: Manage large groups, organize events, potentially leverage Messenger for professional networking or side-hustles.
Selected Segment: I'll focus on the Social Connectors (Teens & Young Adults).
Reasoning: This segment is highly engaged, digitally native, more open to experimenting with new features and digital transactions/subscriptions if the value proposition is strong. They are trendsetters, and successfully monetizing this group could create network effects and pave the way for broader adoption. They heavily use features ripe for enhancement (AR, expression, group interactions)."
Step 5: List down the user Pain Points
Considering the 'Social Connectors' segment, their pain points relevant to potential monetization opportunities include:
Many young users feel Messenger lacks creative tools like fresh chat themes, AR filters, premium avatars, animated effects and unique stickers to express themselves in trendy, personal ways.
There’s no way to send fun digital gifts or socially reward friends, limiting spontaneous joy and peer-to-peer interaction during birthdays or celebrations.
Teens wish they could engage with creators directly on Messenger through exclusive content, fan chats, or micro-subscriptions like they do on TikTok or Discord.
Group chats feel basic, with limited interactivity—missing features like shared media, polls, interactive stories or custom group tools that foster deeper collaboration.
Privacy-conscious users are skeptical of ad targeting inside chats and want more control and transparency over how their data is monetized.
Teens use Messenger for planning but feel it's missing utility features like event polls, shared calendars, or reminders that could simplify coordination.
Messenger lacks immersive, gamified experiences like chat-based games or shared AR spaces, making it feel static compared to Snapchat or Discord.
Many users feel overwhelmed by group notifications and wish for VIP filters or smart prioritization to manage message fatigue.
Step 6: List down the solutions
Following are some of the different monetisation model that can be implemented,
Subscription Model
Charging users a recurring fee for access to premium features.
Example: Netflix, Amazon Prime, phone bills.
Freemium Model
Offering a basic version of the app for free with ads or limited features, while providing a premium version with advanced features for a fee.
Example: Spotify, where the free version comes with ads and limited features, and the premium version offers ad-free listening and other perks.
Advertising Model
Generating revenue by displaying ads to users.
Example: Google, Facebook, TV ads, and online media sites like Forbes.
Transaction Fees
Charging a fee for each transaction made on the platform.
Example: Airbnb, DoorDash, where both the service provider and the customer are charged.
Selling Physical/Digital Goods or Services
Selling tangible items, digital products, or services directly through the platform.
Example: YouTube's stickers, consulting services monetized through free information sharing.
Licensing Model
Charging a fee for a license to use the software or service, often used by enterprise software providers.
Example: Oracle, Salesforce, where businesses pay for a license based on the number of users.
Based on the pain points and monetization models, here are some potential solutions: