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Facebook Stories tests cross-posting to its pet, Instagram

Facebook’s latest colonization of Instagram has begun. Facebook is testing the option to cross-post Stories to Instagram, instead of just vice-versa. Hopefully, that means the two apps will finally sync up the “already viewed” status of cross-posted Stories so we don’t have to watch re-runs any more, as I harped about in January.

If fully launched, the cross-posting feature could save social media managers and average users time while letting them maximize the views on the content they create. It could also give a little boost to the total Stories available on Instagram so its algorithm has more to choose from when ranking what it shows first.

But the change could also been seen as the most invasive injection of parent company Facebook’s identity into Instagram — which has been steadily increasing since Instagram’s co-founders left the company in late 2018 as their autonomy dwindled. Facebook has already pasted an “Instagram – From Facebook” title screen into the photo-sharing app’s boot-up phase, and added an Open Facebook button to its settings menu. Instagram added cross-posting of its Stories to Facebook in October 2017, allowing its parent to piggyback on the popularity of its ephemeral content.

Facebook Stories, Instagram Stories and WhatsApp Status all had 500 million daily users as of a year ago, while Snapchat as a whole has just 218 million users.

The screenshot of the Facebook-to-Instagram cross-posting feature was generated from the Facebook for Android app code by Jane Manchun Wong. She’s the renowned reverse engineering expert who has furnished TechCrunch with tips on dozens of unreleased features that went on to officially launch. When you’ve shot a Facebook Story and are about to post it, you can tap Privacy to review who you’re sharing with. In addition to the Public, Friends, Custom and Hide From options, Facebook is testing a Share To Instagram toggle that appears to turn on continuous cross-posting of that post and future ones.

A Facebook spokesperson tells me that the company is now formally testing the cross-posting feature to make it easier to share moments with the people who matter to you, as people might have different audiences and followers on Facebook versus Instagram. Facebook will continue to explore options for simplifying and improving how Stories work across its apps. That means it’s out of the internal-only prototyping phase and is now being tested with users in the wild.

With any luck, Facebook and Instagram will eventually sync up data about which Stories you’ve watched on either app, and avoid showing you exact copies of ones you’ve already seen. I made my case for this to Instagram’s leadership at a recent press dinner, noting how reruns waste hundreds of millions of people’s time and lead them to close Stories or the app altogether. I asked Facebook about that specifically; they declined to comment.

Creating two-way interoperability of Stories is a precursor to Facebook’s efforts to unify its Messenger, WhatsApp and Instagram Direct chat features. That could extend end-to-end encryption across the apps, protecting messages from prying eyes. But there’s been government grumbling about how encryption could hide the activity of criminals, and some see intertwining the chat features as a way to make it harder for regulators to break up Facebook.

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Facebook Messenger ditches Discover, demotes chat bots

Chat bots were central to Facebook Messenger’s strategy three years ago. Now they’re being hidden from view in the app along with games and businesses. Facebook Messenger is now removing the Discover tab as it focuses on speed and simplicity instead of broad utility like China’s WeChat.

The changes are part of a larger Messenger redesign that reorients the People tab around Stories as Facebook continues to try to dominate the ephemeral social media format it copied from Snapchat. The People tab now defaults to a full-screen sub-tab of friends’ Stories, and requires a tap over to the Active sub tab to see which friends are online now.

The changes could push users to spend more time visually communicating with friends and consuming content than exploring chat bots for shopping, connecting with businesses and playing games. That in turn could help Facebook earn more money from Messenger as it’s now showing Stories ads.

TechCrunch was tipped off to the redesign by social media director Jeff Higgins, who provided us with extensive screenshots of the update. These show the absence of Discover tab, the switch to just Chat and People tabs and the People sub-tabs for Stories and Active. We poked around some more and noticed the Instant Games and Transportation options missing from the chat composer’s utility tray. That formerly offered quick Uber and Lyft hailing. Messenger’s M Suggestions also no longer recommend the Transportation feature.

When we asked Messenger about the changes, a spokesperson confirmed that this redesign will soon start rolling out, removing Discover and splitting the People tab. Some users already have the update, and more will likely get it this week. They noted that Facebook had announced last August that it planned to eventually axe Discover, and that the added emphasis on Stories was motivated by users’ affinity for the ephemeral social media format. They also told us that Transportation was removed in late 2017, and Instant Games’ removal from the composer is part of the migration to Facebook Gaming announced last July.

A look at the old Messenger Discover tab that’s being removed

Chat bots, businesses and games are being hidden, but not completely banished from Messenger. They’ll still be accessible if users purposefully seek them through the Messenger search bar, Pages and ads on Facebook, buttons to start conversations on businesses’ websites, and m.me URL that create QR codes which open to business accounts in Messenger. The spokesperson diplomatically claimed that businesses are still an important part of Messenger.

But without promotion via Discover, businesses will have to rely on their owned or paid marketing channels to gain traction for their chat bots. That could discourage them from building on the Messenger platform.

The rise and fall of Facebook chat bots

The update feels like the end of a four-year era for Facebook. Back in 2016, it saw artificially intelligent chat bots as a way for businesses to scalably communicate with people, deliver customer service and push e-commerce. But when it launched the chat bot platform at its F8 conference that year, it arrived half-baked.

The typing-based semantic user interfaces were confusing, the AI necessary to make chat bots seem human (or at least reliably understand their human conversation partners hadn’t evolved yet) and several of the launch partner bots like Poncho The Weather Cat were laughably useless. The public soured on the idea of chat bots, and attempts to improve them felt insufficient.

Messenger launched Discover in 2017 in hopes that free promotion and visibility might convince developers to invest in building better chatbots. Yet by early 2018, even Facebook was backpedaling, shelving its plan to build out a full-service AI personal assistant called M that you could ask to do anything. Instead, it’d merely make AI suggestions of different Messenger features to use, like Stickers or reminders based on what you typed. Then it announced last year that it would move Instant Games out of Messenger and into Facebook’s dedicated Gaming tab.

There is still an opportunity to use chat bots for gathering initial info from people with sales or customer service inquiries. Everyone hates dealing with this stuff over the phone, waiting on hold and wading through touch-tone menus. Using asynchronous messaging makes communicating with businesses much more convenient. I’d bet Facebook will still be pushing this as an enterprise use case for Messenger. But this still usually requires a human in the loop at some point, and these are better structured as reactive utilities users search for than as experience proactively promoted by a Discover tab.

A laughably bad interaction with old Messenger chat bot Poncho The Weather Cat

Now with Discover disappearing, Messenger seems to be surrendering the fight to become a WeChat-style monolithic utility. In China, WeCat serves not just as a messaging app but as a way to make payments, hail a taxi, book flights, top up your mobile data, get a loan, find housing or shop at businesses via mini programs.

But while that centralized all-in-one style fit Chinese culture, Western markets have experienced more of an unbundling with different apps emerging to handle each of these use cases. Facebook’s constant privacy scandals and increasing anti-trust scrutiny also inhibited this approach with Messenger. Users and the U.S. government weren’t ready to trust Facebook to handle so much of our daily lives. Facebook Messenger also has to jockey with competition like iMessage and Snapchat that could undercut it if it gets too bloated.

So now Messenger is going in the opposite direction. It’s becoming more WhatsApp-like — simple, speedy and centered around peer-to-peer communication. Visual communication through Stories, with replies to them delivered as messages, feels like a natural extension of this focus while conveniently offering a path to monetization. If Messenger can be the best-in-class place to chat, unencumbered by promotion of chat bots and businesses, users might stay locked into the Facebook ecosystem.

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Yo Facebook & Instagram, stop showing Stories reruns

If I watch a Story cross-posted from Instagram to Facebook on either of the apps, it should appear as “watched” at the back of the Stories row on the other app. Why waste my time showing me Stories I already saw?

It’s been over two years since Instagram Stories launched cross-posting to Stories. Countless hours of each feature’s 500 million daily users have been squandered viewing repeats. Facebook and Messenger already synchronized the watched/unwatched state of Stories. It’s long past time that this was expanded to encompass Instagram.

I asked Facebook and Instagram if it had plans for this. A company spokesperson told me that it built cross-posting to make sharing easier to people’s different audiences on Facebook and Instagram, and it’s continuing to explore ways to simplify and improve Stories. But they gave no indication that Facebook realizes how annoying this is or that a solution is in the works.

The end result if this gets fixed? Users would spend more time watching new content, more creators would feel seen, and Facebook’s choice to jam Stories in all its apps would fee less redundant and invasive. If I send a reply to a Story on one app, I’m not going to send it or something different when I see the same Story on the other app a few minutes or hours later. Repeated content leads to more passive viewing and less interactive communication with friends, despite Facebook and Instagram stressing that its this zombie consumption that’s unhealthy.

The only possible downside to changing this could be fewer Stories ad impressions if secondary viewings of peoples’ best friends’ Stories keep them watching more than new content. But prioritizing making money over the user experience is again what Mark Zuckerberg has emphasized is not Facebook’s strategy.

There’s no need to belabor the point any further. Give us back our time. Stop the reruns.

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Facebook prototypes Favorites for close friends microsharing

Facebook is building its own version of Instagram Close Friends, the company confirms to TechCrunch. There are a lot people that don’t share on Facebook because it can feel risky or awkward as its definition of “friends” has swelled to include family, work colleagues and distant acquaintances. No one wants their boss or grandma seeing their weekend partying or edgy memes. There are whole types of sharing, like Snapchat’s Snap Map-style live location tracking, that feel creepy to expose to such a wide audience.

The social network needs to get a handle on microsharing. Yet Facebook has tried and failed over the years to get people to build Friend Lists for posting to different subsets of their network.

Back in 2011, Facebook said that 95% of users hadn’t made a single list. So it tried auto-grouping people into Smart Lists like High School Friends and Co-Workers, and offered manual always-see-in-feed Close Friends and only-see-important-updates Acquaintances lists. But they too saw little traction and few product updates in the past eight years. Facebook ended up shutting down Friend Lists Feeds last year for viewing what certain sets of friends shared.

Then a year ago, Instagram made a breakthrough. Instead of making a complicated array of Friend Lists you could never remember who was on, it made a single Close Friends list with a dedicated button for sharing to them from Stories. Instagram’s research found 85% of a user’s Direct messages go to the same three people, so why not make that easier for Stories without pulling everyone into a group thread? Last month I wrote that “I’m surprised Facebook doesn’t already have its own Close Friends feature, and it’d be smart to build one.”

How Facebook Favorites works

Now Facebook is in fact prototyping its a feature similar to Instagram Close Friends called Favorites. It lets users designate certain friends as Favorites, and then instantly send them their Facebook Story or a  camera-based post from Messenger to just those people, each in their own message thread.

The feature was first spotted inside Messenger by reverse engineering master and frequent TechCrunch tipster Jane Manchun Wong. Buried in the Android app is the code that let Wong generate the screenshots (above) of this unreleased feature. They show how when users go to share a Story or camera post from Messenger, they can instantly send it over chat to everyone on in their Favorites, and edit who’s on that list by adding up to 10 people manually or from algorithmic suggestions. For now Favorites isn’t an audience for sharing Stories like Instagram Close Friends is, but you could imagine Facebook expanding Favorites to have that functionality down the line.

[Update: Facebook had originally confirmed Favorites was for sharing via Stories, but later corrected itself saying posts are sent to Favorites via Messenger.]

 

A Facebook spokesperson confirmed to me that this feature is a prototype that the Messenger team created. It’s an early exploration of the microsharing opportunity, and the feature isn’t officially testing internally with employees or publicly in the wild. The spokesperson describes the Favorites feature as a type of shortcut for sharing to a specific set of people. They tell me that Facebook is always exploring new ways to share, and as discussed at its F8 conference this year, Facebook is focused on improving the experience of sharing with and staying more connected to your closest friends.

Unlocking creepier sharing

There are a ton of benefits Facebook could get from a Favorites feature if it ever launches. First, users might share more often if they can make content visible to just their best pals, as those people wouldn’t get annoyed by over-posting. Second, Facebook could get new, more intimate types of content shared, from the heartfelt and vulnerable to the silly and spontaneous to the racy and shocking — stuff people don’t want every single person they’ve ever accepted a friend request from to see. Favorites could reduce self-censorship.

“No one has ever mastered a close friends graph and made it easy for people to understand . . . People get friend requests and they feel pressure to accept,” Instagram director of product Robby Stein told me when it launched Close Friends last year. “The curve is actually that your sharing goes up and as you add more people initially, as more people can respond to you. But then there’s a point where it reduces sharing over time.” Google+, Path and other apps have died chasing this purposefully selective microsharing behavior.

Facebook Favorites could stimulate lots of sharing of content unique to its network, thereby driving usage. After all, Facebook said in April that it had 500 million daily Stories users across Facebook and Messenger posting from the camera, and the same number as Instagram Stories and WhatsApp Status.

Before Instagram launched Close Friends, it actually tested the feature under the name Favorites and allowed you to share feed posts as well as Stories to just that subset of people. And last month Instagram launched the Close Friends-only messaging app Threads that lets you share your Auto-Status about where or what you’re up to.

Facebook Favorites could similarly unlock whole new ways to connect. Facebook can’t follow some apps like Snapchat down more privacy-centric product paths because it knows users are already uneasy about it after 15 years of privacy scandals. Apps built for sharing to different graphs than Facebook have been some of the few social products that have succeeded outside its empire, from Twitter’s interest graph, to TikTok’s fandoms of public entertainment, to Snapchat’s messaging threads with besties.

Instagram Threads

A competent and popular Facebook Favorites could let it try products in location, memes, performances, Q&A, messaging, live streaming and more. It could build its own take on Instagram Threads, let people share exact location just with Favorites instead of just what neighborhood they’re in with Nearby Friends or create a dedicated meme resharing hub like the LOL experiment for teens it shut down. At the very least, it could integrate with Instagram Close Friends so you could syndicate posts from Instagram to your Facebook Favorites.

The whole concept of Favorites aligns with Facebook CEO Mark Zuckerberg’s privacy-focused vision for social networking. “Many people prefer the intimacy of communicating one-on-one or with just a few friends,” he writes. Facebook can’t just be the general purpose catch-all social network we occasionally check for acquaintances’ broadcasted life updates. To survive another 15 years, it must be where people come back each day to get real with their dearest friends. Less can be more.

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You can now share music from Spotify to Facebook Stories

Spotify this morning announced a new way for you to share music with friends (or fans, if you’re an artist) — by way of a new Facebook Stories integration that includes 15-second song previews. Viewers can also optionally tap on the “Play on Spotify” button in the Story to be redirected to the Spotify app to hear more.

The feature is designed largely with artists and their teams in mind, as it gives them another way to promote their new music across Facebook’s social network. Musicians and their managers often today use the Spotify app’s sharing feature to post their content across social media, including to Instagram, Twitter, WhatsApp, and elsewhere.

Last year, Spotify introduced a way to share music to Instagram Stories, including their albums, tracks, and playlists, as part of Facebook’s announcement that it was opening up sharing to Facebook and Instagram Stories from other, third-party apps.

At the time, the company said an integration with Facebook Stories was coming soon.

Since its launch on Instagram, the sharing feature has been mutually beneficial for both Spotify and Instagram alike, as it made users’ Stories more engaging while also sending traffic back to the Spotify app for further music discovery.

Add some music to your story 📖
Audio sharing to Facebook Stories is now available. pic.twitter.com/HSBgmxYd8G

— Spotify (@Spotify) August 30, 2019

There’s likely not as much demand for sharing to Facebook Stories, however.

In order to share the 15-second clips to Facebook Stories, you’ll tap the “Share” button from the Spotify app and choose Facebook as the destination.

Side note: We’re not seeing the option to share to News Feed as the picture Spotify published shows (see above. Instead, tapping “Facebook” launches you right into the Story interface, as shown in the tweet above. 

You can then customize your Story as you would normally using the Story editing tools and post it to your profile. Viewers will get to hear the 15-second song clip, and can then tap to go to Spotify to hear more.

Spotify had offered Facebook Story sharing in the past, but the access was later pulled.

Hi there! We’re afraid the “Share to Facebook Stories” feature is no longer supported on Spotify. Give us a shout if you have other questions /MT

— SpotifyCares (@SpotifyCares) January 30, 2019

These song previews only work when you’re sharing a single track to Stories. If you choose to share other content, like albums, playlists, or an artist profile page, viewers can click into that content, but won’t hear any preview, Spotify says.

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You might hate it, but Facebook Stories now has 500M users

You might think it’s redundant with Instagram Stories, or just don’t want to see high school friends’ boring lives, but ephemeral Snapchat-style Stories now have 500 million daily users across Facebook and Messenger. WhatsApp’s Stories feature Status has 500 million dailies too, and Instagram hit that milestone three months ago. That’s impressive, because it means one-third of Facebook’s 1.56 billion daily users are posting or watching Stories each day, up from zero when Facebook launched the feature two years ago.

For reference, Stories inventor Snapchat has just 190 million total daily users.

Facebook Stories

CEO Mark Zuckerberg announced the new stats on today’s Facebook Q1 2019 earnings call, which showed it’s user growth rate had increased but it had to save $3 billion for a potential FTC fine over privacy practices.

Facebook isn’t just using Stories to keep people engaged, but to squeeze more cash out of them. Today COO Sheryl Sandberg announced that 3 million advertisers have now bought Stories ads across Facebook’s family of apps. I’d expect Facebook to launch a Stories Ad Network soon so other apps can show Facebook’s vertical video ads and get a cut of the revenue.

Facebook’s aggressive move to clone Snapchat Stories not just in Instagram but everywhere might have pissed users off at first, but many of them have come around. If you give people a place to put their face at the top of their friends’ phones, they’ll fill it. And if someone dangles a window into the lives of people you know and people you wish you did, you’ll open that window regularly.

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Facebook reserves $3B for FTC fine, but keeps growing with 2.38B users in Q1

A massive penalty hangs over Facebook’s head, but it otherwise had a very strong Q1 earnings report. Facebook reached 2.38 billion monthly users, up 2.5 percent from 2.32 billion in Q4 2018 when it grew 2.2 percent, and it now has 1.56 billion daily active users, up 2.63 percent from 1.52 billion last quarter when it grew 2 percent. Facebook pulled in $15.08 in revenue, up 26 percent year-over-year compared to Refinitiv’s consensus estimates of $14.98 billion in revenue.

Facebook recorded earnings per share of $0.85 compared to estimates of $1.63 EPS. However, that’s because Facebook has set aside $3 billion to cover a potential FTC fine that it’s still resolving. Without that fine, it would have had an EPS of $1.89. Despite the set-aside, Facebook still earned $2.429 billion in profit, though that’s down from $4.988 a year ago and $6.8 billion in Q4 2018.

Facebook’s share price rose 8.3 percent to $197.84 after closing before earnings at $182.58, way up from its recent low of $124.06 in December. Wall Street seems to have already priced in the potential FTC fine. Facebook has agreed to strict oversight of how it handled user privacy in a 2011 deal with the FTC. It promised to not misrepresent its privacy practices or change privacy controls without user permission, and it’s now negotiating the fine for potentially breaking those terms.

Facebook wrote in its earnings release about the FTC fine that:

“In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices, which accrual is included in accrued expenses and other current liabilities on our condensed consolidated balance sheet. We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion. The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.”

It’s possible Facebook escapes with a lesser fine that would likely still dwarf Google’s $22.5 million penalty for violating an FTC privacy deal. But it also might have to drag down a future quarter of earnings if the fine ranges as high as $5 billion or larger. Though Facebook does have $45.2 billion in cash and securities on hand to pay that fine and make any necessary acquisitions. Facebook’s headcount grew 36% year-over-year to 37,773 as it staffs up its security team, but it still has a 22 percent operating margin.

Facebook has managed to hold on to its 66 percent daily to monthly user ratio, showing people aren’t necessarily using it less despite all the backlash. It added 39 million daily users, compared to Snapchat’s addition of 4 million in Q1. But Facebook failed to grow past its 186 million daily user count in the US & Canada where it got stuck last quarter, but at least it added 4 million in its lucrative Europe market, plus it had atypically large gains in Asia-Pacific and the Rest Of World regions. As for monetization, Facebook made modest gains in average revenue per user across markets compared to Q3 2018 (excluding the holiday-laden Q4). Europe did especially well, growing ARPU 8.2 percent.

Zooming out, Facebook now has over 2.7 billion total mothly users across its family of Facebook, Messenger, Instagram, and WhatsApp, the same as last quarter. 2.1 billion people use at least one of those apps daily, up from 2 billion last quarter. Instagram Stories, WhatsApp Status, and Facebook Stories on Facebook and Messenger combined each now have 500 million daily users. Facebook also now has 3 million advertisers buying Stories ads across its apps, so the ephemeral format will likely start to contribute meaningful revenue soon.

Color From The Earnings Call

In March, Zuckerberg announced plans for a massive privacy-centric overhaul of Facebook to turn it from just a townsquare into also a “living room”. That means unifying its messaging apps with a backend that supports end-to-end encryption, and promoting ephemerality in content sharing and communication. That could help deter calls for regulation, make Facebook harder to break up, and help it stay ahead of competitors like Snapchat, but will also be a massive product and engineering undertaking.

Today, Zuckerberg focused on providing more details to this plan to expand privacy, encryption, impermanence, safety, interoperability, and secure data storage. He stressed that given people traditionally spend more time communicating and consuming content privately than publicly, strengthening Facebook’s “living room” could boost its business. Zuckerberg noted that since Facebook already doesn’t use messaging content for ad targeting and recent content is more useful for its business, encryption and impermanence shouldn’t be a big risk either. Refusing to store data in countries with poor records of privacy could lead to Facebook being banned there, which Zuckerberg admitted is a major business threat, but one it’s grappled with over content policies for years.

In fact, impermanence is already earning money for Facebook. It said that Instagram Stories was the greatest contributor of additional ad impressions this quarter. And while the Facebook and Instagram feeds are already jammed full of ads with little room for more, Facebook says there’s still room to significantly increase Instagram Stories ad load.

Another highlight of the call was Zuckerberg’s discussion of Facebook’s payments strategy. He confirmed that Facebook plans to build out ways for people to pay merchants through its messaging apps. “So I think that what we’re going to end up seeing is building out payments, which is going to end up being something that we do country by country . . . The goal is to have something where you could do discovery through the broader townsquare-like platforms like Instagram and Facebook, and then you can complete the transactions and follow up with businesses individually and have an ongoing relationship through Messenger and WhatsApp.”

This is the first earnings report of a full quarter following Facebook’s worst-ever security breach in September that impacted 50 million users, shaking confidence in the social network’s privacy and security. It’s also the first full quarter in which Facebook sold its own branded hardware — its Portal video chat device that was well received by critics except for the fact that it was made by Facebook.

Yet the defining story continues to be Facebook’s struggle with claims that its user research and developer platform efforts endangered user privacy and steamrolled competitors in search of growth. That includes TechCrunch’s big scoop that Facebook was paying teens to snoop on their data with a VPN app, which eventually led Facebook to shut down its Onavo user surveillance apps. The fact that Facebook isn’t losing massive numbers of users after years of sustained scandals is a testament to how deeply it’s woven itself into people’s lives.

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Facebook prototypes a swipeable hybrid carousel of feed posts & Stories

Feed and Stories unite! Facebook is so eager to preempt the shift to Stories that it might even let us use the same interface of horizontally swipeable cards to sift through News Feed posts. If users won’t scroll down any more, Facebook’s ad business could take a huge hit. But by allowing traditional feed posts and ads to appear amidst Stories in the same carousel you’re more prone to swipe through, it could squeeze more views and dollars out of that content. This would help Facebook gracefully transition to the post-News Feed era while it teaches advertisers how to use the full-screen Stories ad format.

In this image, you can see a user in mid-swipe through the hybrid carousel between a News Feed story about a friend updating their profile photo to an animated GIF-style video on the left and a Stories video on the right.

We’re awaiting comment from Facebook about this. There’s a chance it was just caused by a bug like the briefly side-scrollable Instagram feed that popped up in December, or that it will never be publicly tested, let alone launch. But given the significance of Facebook potentially reimagining navigation of its main revenue stream, we considered it worth covering immediately. After all, Facebook predicts that Stories sharing will surpass feed sharing across all social apps sometime this year. It already has 300 million daily users across Stories on Facebook and Messenger, plus another 500 million on Instagram Stories and 450 million on WhatsApp Status.

[Update: Facebook confirms that this feature is a very early-stage prototype of a new way to navigate News Feed posts. A Facebook spokesperson tells TechCrunch that “We are currently not testing this publicly” as the company still needs do a lot more user research before any public experimentation.]

This swipeable hybrid carousel was first spotted by reverse-engineering specialist and frequent TechCrunch tipster Jane Manchun Wong. She discovered this unreleased feature inside the Android version of Facebook and screenrecorded the new navigation method. In this prototype, when a News Feed post’s header or surrounding space is tapped, users see a full-screen version of the post. From there they can swipe left to reveal the next content in the hybrid carousel, which can include both traditional News Feed posts, News Feed ads and purposefully vertical Stories and Stories ads.

Users can tap to Like, react to or comment on feed posts while still in the carousel interface. Facebook has been offering ways to syndicate your News Feed posts to Stories since last year, but those posts got reformatted to look like Stories rather than retaining their old design and white background as we see here.

Facebook is testing to turn News Feed into Story Feed pic.twitter.com/83H7VWcgmD

— Jane Manchun Wong (@wongmjane) April 15, 2019

If Facebook moved forward with offering this as an optional way to browse its social network, it would hedge the business against the biggest behavior change it’s seen since the move from desktop to mobile. Vertically scrolling News Feeds are useful for browsing text-heavy content, but the navigation requires more work. Users have to stop and start scrolling precisely to get a whole post in view, and it takes longer to move between pieces of content.

In contrast, swipeable Stories carousels offer a more convenient lean-back navigation style where posts always appear fully visible. All it takes to advance to the next full-screen piece of content is a single tap, which is easier on your joints. This allows rapid-fire fast-forwarding through friends’ lives, which works well with more visual, instantly digestible content. While cramming text-filled News Feed posts may not be ideal, at least they might get more attention. If Facebook combined all this with unskippable Stories ads like Snapchat is increasingly using, the medium shift could lure more TV dollars to the web.

The hybrid posts and Stories carousel can contain both traditional image plus caption News Feed posts and News feed ads as well as Stories

Facebook has repeatedly warned that it’s out of space for more ads in the News Feed, and that users are moving their viewing time to Stories, where advertisers are still getting acclimated. When Facebook made it clear on its Q2 2018 earnings call that this could significantly reduce revenue growth, its share price dropped 20 percent, vaporizing $120 billion in value. Wall Street is rightfully concerned that the Stories medium shift could upend Facebook’s massive business.

Stories is a bustling up-and-coming neighborhood. News Feed is a steadily declining industrial city that’s where Facebook’s money is earned but that’s on its way to becoming a ghost town. A hybrid Stories/posts carousel would build a super highway between them, connecting where Facebook users want to spend time with where the municipality generates the taxes necessary to keep the lights on.

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Zuckerberg says the future is sharing via 100B messages & 1B Stories/day

The News Feed won’t sustain Facebook forever, and that’s scaring investors. Today on Facebook’s earnings call, Mark Zuckerberg stressed that sharing is shifting to private chat, where people send 100 billion messages per day on Facebook’s family of apps, and Stories, where he says people share 1 billion of these slideshows per day (though it’s unclear if that includes third-party apps like Snapchat).

But that means Facebook will have to realign its business towards these mediums where monetization is more complex and it has less experience. The result of Zuckerberg’s comments was a reversal of Facebook’s initial 2 percent share price gain after earnings were announced that dragged it down to a 3.5 percent loss. That was only reversed when Zuckerberg said Facebook would reduce limits on video advertising, pushing shares up 3 percent in after-hours trading.

Facebook’s year-over-year revenue growth has already slowed from 59 percent in Q3 2016, to 49 percent a year ago, to 33 percent now as Zuckerberg admits it’s hitting saturation in developed markets, plus it’s running out of News Feed space. Now it will both have to deal with the sharing medium shift, and that the new users it’s adding in the Asia-Pacific and Rest Of World regions earn it 10X less than users in North America.

Battling iMessage

In messaging, Zuckerberg says “People share more photos, videos, and links on WhatsApp and Messenger than they do on social networks.” He sees Facebook’s position as strong, saying “We’re leading in most countries”, though that’s mostly in the developing world Android market where people choose their own default messaging app. “Our biggest competitor by far is iMessage. In important countries like the US where the iPhone is strong, Apple bundles iMesssage as the default texting app, and it’s still ahead” Zuckerberg notes.

The “bundled” language harkens back to to antitrust lawsuits against Microsoft for bundling computers with Internet Explorer. With Apple CEO Tim Cook constantly harping on the poor privacy practices of ad-supported companies like Facebook, Zuckerberg might be gunning to draw regulator attention to iMessage.

Facebook is starting to more aggressively monetize Messenger through inbox ads, and its now selling enterprise tools to brands on both Facebook and WhatsApp that let them pay to ping users. But Facebook risks its chat apps seeming annoying or intrusive if it packs in too many ads or allows too much Message spam. Users could stray to status quos like iMessage and Android Messages if it puts monetization above the user experience.

Dominating Snapchat

On Stories, Zuckerberg says Facebook is doing even better. Over 1 billion people use its Stories features across Facebook, Messenger, Instagram, and WhatsApp each day, compared to 186 million daily users on Stories inventor Snapchat as a whole. Stories are where the majority of Facebook sharing growth is happening, and Facebook Stories are gaining momentum after a slow and buggy start. That’s why Zuckerberg never mentioned Snapchat, and instead talk about YouTube as its primary competitor in video.

The problem is that creating attractive video ads, especially vertical full-screen ones for Stories, is beyond the capability of the long-tail on small businesses that have fueled Facebook’s News Feed ad revenue. Users often rapidly skip through Stories ads, and Facebook currently doesn’t offer unskippable ones like Snapchat. Many people don’t think to tap or swipe up to visit a link from a Story, or simply don’t want to lose their place in ways that didn’t happen on desktop or even mobile feed ads.

Chasing YouTube

Beyond Stories, Facebook salvaged its after-hours share price by discussing how it plans to show more video, and therefore more of its lucrative video ads. Back in January, Facebook admitted its Q4 user count had declined and revenue might stumble in part because it had decided to show people fewer viral videos that they watch passively. This came as part of its drive for Time Well Spent. But now, Zuckerberg says that Facebook has cracked the code for how to make passive video consumption a positive experience, so Facebook will lift some limits:

People really want to watch a lot of video. To a large degree we’ve had to rate limit its growth, and we need to do the things so we can stop limiting it. The things that have caused us to limit it are on the one hand, when we see passive consumption of video displacing social interactions . . . We needed to figure out a way that video can grow but people can also keep on interacting and doing what they tell us that they uniquely want from Facebook. And now I think we’re starting to work through what the formula is going to be so we can take some of those rate limits off and let video grow at the rate that it wants to. I feel that that’s a very exciting opportunity ahead.”

Across Facebook’s other products, Zuckerberg noted that 800 million people now use Marketplace, its Jobs feature have helped people find 1 million jobs, and its birthday fundraisers have raised $300 million alone this year. But it will be teaching advertisers how to effectively create sponsored messages and Stories ads that will define whether Facebook’s revenue keeps growing.

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Inside Facebook Stories’ quest for originality amidst 300M users

There’s a secret Facebook app called Blink. Built for employees only, it’s how the company tests new video formats it’s hoping will become the next Boomerang or SuperZoom. They range from artsy Blur effects to a way even old Android phones can use Slo-Mo. One exciting format in development offers audio beat detection that syncs visual embellishments to songs playing in the background or added via the Music feature for adding licensed songs as soundtracks that is coming to Facebook Stories after debuting on Instagram.

“When we first formed the team . . . we brought in film makers and cinematographers to help the broader team understand the tropes around storytelling and film making,” says Dantley Davis, Facebook Stories’ director of design. He knows those tropes himself, having spent seven years at Netflix leading the design of its apps and absorbing creative tricks from countless movies. He wants to democratize those effects once trapped inside expensive desktop editing software. “We’re working on formats to enable people to take the video they have and turn it into something special.”

For all the jabs about Facebook stealing Stories from Snapchat, it’s working hard to differentiate. That’s in part because there’s not much left to copy, and because it’s largely succeeded in conquering the prodigal startup that refused to be acquired. Snapchat’s user count shrank last quarter to 188 million daily users.

Meanwhile, Facebook’s versions continue to grow. The Messenger Day brand was retired a year ago and now Stories posts to either the chat app or Facebook sync to both. After announcing in May that Facebook Stories had 150 million users, with Messenger citing 70 million last September, today the company revealed they have a combined 300 million daily users. The Middle East, Central Latin America and Southeast Asia, where people already use Facebook and Messenger most, are driving that rapid growth.

With the success of any product comes the mandate to monetize it. That push ended up pushing out the founders of Facebook acquisition WhatsApp, and encroachment on product decision-making did the same to Instagram’s founders who this week announced they were resigning.

Now the mandate has reached Facebook Stories, which today opened up to advertisers globally, and also started syndicating those ads into Stories within Messenger. Facebook is even running “Stories School” programs to teach ad execs the visual language of ephemerality since all four of its family of apps will monetize Stories with ads. WhatsApp will start to show ads in its Status version of Stories starting next year now that its founders that hated ads have left.

As sharing to Stories is predicted to surpass feed sharing in 2019, Facebook is counting on the ephemeral slideshows to sustain its ad revenue. Fears they wouldn’t lopped $120 billion off Facebook’s market cap this summer.

Facebook Stories ads open to all advertisers today

But to run ads you need viewers, and that will require responses to questions that have dogged Facebook Stories since its debut in early 2017: “Why do I need Stories here too when I already have Instagram Stories and WhatsApp Status?” Many find it annoying that Stories have infected every one of Facebook’s products.

Facebook user experience research manager Liz Keneski

The answer may be creativity. However, Facebook is taking a scientific approach to determining which creative tools to build. Liz Keneski is a user experience research manager at Facebook. She leads the investigative trips, internal testing and focus groups that shape Facebook’s products. Keneski laid out the different types of research Facebook employs to go from vague idea to polished launch:

  • Foundational Research – “This is the really future-looking research. It’s not necessarily about any specific products but trying to understand people’s needs.”
  • Contextual Inquiry – “People are kind enough to invite us into their homes and talk with us about how they use technology.” Sometimes Facebook does “street intercepts” where they find people in public and spend five minutes watching and discussing how they use their phone. It also conducts “diary studies” where people journal about how they spend their time with tech.
  • Descriptive Research – “When we’re exploring a defined product space,” this lets Facebook get feedback on exactly what users would want a new feature to do.
  • Participatory Design – “It’s kind of like research arts and crafts. We give people different artifacts and design elements and actually ask them to a deign what an experience that would be ideal for them might look like.”
  • Product Research – “Seeing how people interact with a specific product, the things they’re like or don’t like, the things they might want to change” lets Facebook figure out how to tweak features it’s built so they’re ready to launch.

Last year Facebook went on a foundational research expedition to India. Devanshi Bhandari, who works on the globalization, discovered that even in emerging markets where Snapchat never got popular, people already knew how to use Stories. “We’ve been kind of surprised to learn . . . Ephemeral sharing wasn’t as new to some people as we expected,” she tells me. It turns out there are regional Stories copycats around the globe.

As Bhandari dug deeper, she found that people wanted more creative tools, but not at the cost of speed. So Facebook began caching the Stories tray from your last visit so it’d still appear when you open Facebook Lite without having to wait for it to load. This week, Facebook will start offering creative tools like filters inside Facebook Lite Stories by enabling them server-side so users can do more than just upload unedited videos.

That trip to India ended up spawning whole new products. Bhandari noticed some users, especially women, weren’t comfortable showing their face in Stories. “People would sometimes put their thumb over the video camera but share the audio content,” she tells me. That led Facebook to build Audio Stories.

Facebook now lets U.S. users add music to Stories just like Instagram

Dantley Davis, Facebook Stories’ director of design

Back at Facebook headquarters in California, the design team runs exercises to distill their own visions of creative. “We have a phase of our design cycle where we ask the designers . . . to bring in their inspiration,” says Davis. That means everything from apps to movie clips to physical objects. Facebook determined that users needed better ways to express emotion through text. While it offers different fonts, from billboard to typewriter motifs, they couldn’t convey if someone is happy or sad. So now Davis reveals Facebook is building “kinetic text.” Users can select if they want to convey if text is supposed to be funny or happy or sad, and their words will appear stylized with movement to get that concept across.

But to make Stories truly Facebook-y, the team had to build them into all its products while solving problems rather than creating them. For example, birthday wall posts are one of the longest running emerging behaviors on the social network. But most people just post a thin, generic “happy birthday!” or “HBD” post, which can feel impersonal, even dystopic. So after announcing the idea in May, Facebook is now running Birthday Stories that encourage friends to submit a short video clip of well wishes instead of bland text.

Facebook recently launched Group and Event Stories, where members can collaborate by all contributing clips that show up in the Stories tray atop the News Feed. Now Facebook is going to start building its own version of Snapchat’s Our Stories. Facebook is now testing holiday-based collaborative Stories, starting with the Mid-Autumn Festival in Vietnam. Users can opt to post to this themed Story, and friends (but not the public) will see those clips combined.

This is the final step of Facebook’s three-part plan to get people hooked on Stories, according to Facebook’s head of Stories, Rushabh Doshi. The idea is that first, Facebook has to get people a taste of Stories by spotlighting them atop the app as well as amidst the feed. Then it makes it easy for people to post their own Stories by offering simple creative tools. And finally, it wants to “Build Stories for what people expect out of Facebook.” That encompasses all the integrations of Stories across the product.

Rushabh Doshi, Facebook’s head of Stories

Still, the toughest nut to crack won’t be helping users figure out what to share but who to share to. Facebook Stories’ biggest disadvantage is that it’s built around an extremely broad social graph that includes not only friends but family, work colleagues and distant acquaintances. That can apply a chilling effect to sharing as people don’t feel comfortable posting silly, off-the-cuff or vulnerable Stories to such a wide audience.

Facebook has struggled with this problem in News Feed for over a decade. It ended up killing off its Friend List Feeds that let people select a subset of their friends and view a feed of just their posts because so few people were using them. Yet the problem remains rampant, and the invasion of parents and bosses has pushed users to Instagram, Snapchat and other younger apps. Unfortunately for now, Doshi says there are no Friend Lists or specific ways to keep Facebook Stories more private amongst friends. “To help people keep up with smaller groups, we’re focused on ways people are already connecting on Facebook, such as Group Stories and Event Stories” Doshi tells me. At least he says “We’re also looking at new ways people could share their stories with select groups of people.”

At 300 million daily users, Facebook Stories doesn’t deserve the “ghost town” label any more. People who were already accustomed to Stories elsewhere still see the feature as intrusive, interruptive and somewhat desperate. But with 2.2 billion total Facebookers, the company can be forced to focus on one-size-fits-all solutions. Yet if Facebook’s Blink testing app can produce must-use filters and effects, and collaborative Stories can unlock new forms of sharing, Facebook Stories could find its purpose.

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