Metrics question

How would you set goals and measure success of Instagram stories? What will happen if too many stories are getting created instead of posts?

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What this question tests

Metric design for an ephemeral content format and understanding cannibalization risk.

How to approach it

  1. State Stories' goal: increase daily engagement and lower the barrier to sharing compared to curated posts.
  2. Propose metrics: stories created per DAU, story completion or view-through rate, and replies generated from stories.
  3. Address the cannibalization question directly: check whether total engagement and ad revenue stay net positive as posts decline.
  4. Propose a guardrail metric, e.g. feed ad impressions, to catch revenue risk from the shift.
  5. Distinguish engagement metrics, where stories help frequency, from discovery metrics, where posts help reach.
  6. Conclude that a moderate posts-to-stories shift is fine only if total time spent and monetization hold.

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