Lenny AT (Reels)

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1	👋 Hey there! My name is Ben Erez. You probably found this by reading my guest post on Lenny's Newsletter. - I originally created this template for my PM Interview Bootcamp with AI Copilot: Product Sense & Analytical Thinking course. - To understand this framework better, I invite you to watch this free lecture: How to Ace Analytical Thinking PM Interviews. - Want to make a copy of this template to practice with? Here's an empty version of this template. - Want help filling out the empty template? Check out my AI Copilot for Product Sense & Analytical Thinking PM Interview Prep. Looking for a Product Sense interview template? Go here.

2	Analytical Thinking - Setting a Goal
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4	Interview Question	You’re a PM at Meta. Set a goal for Instagram Reels.
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6	Before I dive in, would like to make some up front assumption if that works for you? 👇
7	⏰ <1 min	Assumptions
8	Assumptions	I'll focus on Instagram Reels globally, since short-form video consumption is a worldwide phenomenon I'll focus on the mobile app experience since that's where most usage occurs I'll assume we're discussing current state rather than when Reels initially launched			👈	Tip: clarify the prompt means something specific, state anything that'll help you proceeed
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10	I’d like to start by reviewing the product's landscape reason for existing, touching on where I think it is along the maturity lifecycle, key competitors, the company's unique advantage and how the product generates revenue. We'll finish that part by setting a placeholder mission statement for the product. Then, I'd like to identify the product's key stakeholders players along with each of their primary motivations for participating in the ecosystem. I'll define key actions that indicate the motivations are being met and translate those into ecosystem health metrics. Once we have ecosystem health metrics, I'll try to identify a north star metric that reflects value creation for the ecosystem overall and I'll critique that metric to define 1-2 guardrail metrics that ensure we're growing the ecosystem sustainably. Once we have the NSM and counter metric, I'll identify a small set of goals that an individual team could focus on within a 3-6 month timeframe. At any point, happy to talk through tradeoffs. Does that sound like a good plan for spending time together?				👈	Tip: spend the 30-45 seconds to say this. It will set the tone for the interview.
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12	Great, let me take a minute to gather my thoughts 👇
13	⏰ <5 min	Product Rationale (Product, Users, Value)
14	Describe the product functionality, maturity and how it makes money Current alternatives / competitors Why this company is uniquely positioned to deliver the best experience/product	Instagram Reels is Meta's short-form vertical video product (up to 90 seconds) that addresses the shift toward bite-sized video content consumption. Before Reels, users seeking this format left Instagram for platforms like TikTok, threatening user engagement. Reels is in its growth/maturity stage, competing with TikTok and YouTube Shorts. Meta's advantages include its global user base, creator relationships, recommendation systems, advertising platform, and cross-posting capabilities. Reels is vital to Meta because it responds to changing consumption habits (especially among younger users), retains users, creates new ad inventory, and offers creators additional monetization opportunities. Meta's mission is to "build the future of human connection and the technology that makes it possible." Instagram Reels supports this mission by: - Creating new formats for human connection through entertaining, authentic short-form videos - Enabling creators to connect with audiences - Developing technology for creating, discovering, and sharing short-form video content			👈	Talk about why the product/experience matters to users, ecosystem and company. What problem does it solve and why does that matter to the market and the company (and why NOW). Talk about key gaps with current options.
15	Mission statement for the product	Empower creators and viewers to meaningfully connect through creative, short-form videos			👈	Anchor for tradeoff questions later E.g. for Instagram Reels: "Empower creators to share engaging short-form videos that entertain and connect the Instagram community."
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17	Next, I'd like to spend a couple minutes thinking through ecosystem players, primary motivations, and key activities for realizing value. Does that sound good? 👇
18	⏰ < 8 min	Ecosystem Players
19	Ecosystem Players	Value Prop	Key Actions to Realize Value Prop	Ecosytem Health Metric w/ Timeframe	👈	Good to mention revenue but likely not a top-line ecosystem health metric for the product
20	Viewers	Discover entertaining, inspiring content in a quick, engaging format	• Watch Reels • Engage with Reels (like, comment, share) • Discover new creators	# users who watch at least one Reel per day (DAU) # minutes of Reels watch time per day # Reels watched to completion per day # social engagements with Reels per day (like, comment, share)
21	Creators	Build audience, express creativity, and monetize content	• Create and post Reels • Engage with audience	# creators who post at least one Reel per week (WAC) # Reels published per week # minutes of Reels published per week
22	Advertisers	Reach targeted audiences in an engaging format	• Create and run Reels ads • Measure campaign performance • Optimize ad content	# advertisers running at least 1 ad campaign in Reels % of Reels ad impressions that drive clicks per week Distribution of advertiser ROAS for Reels ads per month (pie chart showing % of advertisers with ranges of return on ad spend)
23	Meta	Generate revenue, increase user engagement, and compete with TikTok	• Improve recommendation algorithms • Increase ad inventory • Enhance creator tools	$ Reels revenue per month # Reels ads shown per month % of total Instagram time spent watching Reels per week % of Instagram WAU who engage with Reels per week
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25	Now that we have our ecosystem health metrics, I'll take a minute to identify a north star metric and any guardrail metrics 👇
26	⏰ < 4 min	North Star Metric
27	North Star Metric	Timeframe	Strengths of this NSM	Potential Drawbacks of this NSM	👈	Tip: remember to critique the north star metric by stating drawbacks. The drawbacks will inform your guardrails.
28	Total Reels watch time (in minutes)	Per week	Indicates viewers are finding content engaging Creates value for all ecosystem players (viewers get enjoyment, creators get audience, advertisers get inventory, Meta gets revenue) Can grow continuously without natural ceiling	Watch time could increase even with degrading content quality Could incentivize longer videos even when shorter ones might be more engaging Might grow through a small subset of heavy users rather than broad adoption
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30	⏰ < 3 min	Guardrails and Countermetrics to Address NSM Drawbacks
31	Guardrails / Counter Metrics	Average Completion Rate per Reel - % of each Reel that gets watched on average - Ensures we're growing watch time through truly engaging content, not just through algorithm pushing lower quality content. - Should remain above healthy baseline			👈	Tip: Guardrail metrics should map to key drawbacks of the NSM. Guardrails allow the ecosystem to stay within a healthy range as the NSM grows. E.g. if you're growing the number of messages sent, you want to do that without increasing spam reports as a % of messages
32		Average Viewed Reel Duration (in seconds) - Monitors whether watch time is inflated by pushing longer videos - Should remain within an optimal range (not too short, not too long)
33		IG Penetration (Reels WAU as % of Instagram WAU) - Ensures we're growing Reels adoption broadly across the Instagram user base - Should remain above a healthy baseline
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35	Working backwards from the NSM and considering the guardrails, I'd love to focus my team on 1-2 specific goals 👇
36	⏰ <5 min	Team Focus for the next 3-6 months (Goals)
37	Ecosystem player to focus on and why (rationale)	I would focus on Creators because in the current stage of Reels' maturity, content supply is crucial for growing watch time. While viewers and advertisers are essential, without a robust supply of engaging content, the total watch time potential is limited. Strong creator participation provides the foundation for both viewer engagement and advertiser interest.			👈	Tip: which ecosystem player would unlock the biggest growth based on the current state and maturity of the product?
38	Selected ecosystem player's key user journey steps leading to NSM event/action	Discovery of Reels creation opportunity Initial Reels creation attempt Editing and enhancing Reels Publishing Reels Promoting Reels Engaging with audience comments/feedback Reviewing performance metrics Repeating creation cycle (retention)			👈	Tip: Work backwards from the action the chosen ecosystem player takes to contribute to the NSM to identify leading actions. These are your potential leading metrics.
39	Potential goals based on key actions along that journey that can be influenced within 3-6 months	Potential Team Goal/Metric	Ability to Influence	Impact on NSM
40		Increase Reels creation completion rate % of Reels drafts started that get published	High We control the creation UI and workflow entirely, requiring no cross-team coordination.	Medium Only addresses creators who already started content, a smaller opportunity than expanding our creator base.	👈	Tip: Prioritize one of these goals based on ability to influence and potential impact on NSM. Ability to influence includes internal friction (e.g. influencing Feed algorithm if you're not the PM for that will be Low-Med influence).
41		Increase creator posting frequency % of creators who post at least 2 Reels per week	Medium Requires changing established creator behaviors, more challenging than optimizing specific journey moments.	High Increases quality content from proven creators who consistently improve over time.
42		Improve new creator retention % of first-time creators who publish a second Reel within 14 days	High First-to-second creation is a specific moment we control through targeted prompts and metrics.	High Each retained creator produces multiple Reels, creating a multiplier effect on content supply.
43	Prioritized Goal with Rationale	I would prioritize improving new creator retention (% of first-time creators who publish a second Reel within 14 days). This goal scores high on both influence and impact metrics. We can influence this through better post-publishing guidance, enhanced performance dashboards, success stories, and personalized prompts. This goal will expand our creator base sustainably, increasing content supply which directly drives total watch time.
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45	⏰ <10 min
46	Tradeoff Question	We're thinking about putting Reels at the top of the Instagram app instead of Stories. Is that a good idea?
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48	I'd like to start by clarifying the tradeoff and then I'll walk you through my thinking on how I would navigate the decision. 👇				👈	Tip: spend 15-20 seconds to say this. It will help.
49	Clarify Tradeoff
50	Describe	We're considering whether to place Reels at the top of the Instagram app interface, replacing Stories which currently occupies that prime position.			👈	Tip: clarify the prompt means something specific, state anything that'll help you proceeed
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52	Let me think about the common goal for these options 👇
53	Common Goal/Mission	Both Reels and Stories contribute to Instagram's mission of connecting people through creative expression, but they do so differently. Stories enable ephemeral, authentic sharing between friends, while Reels focuses on entertainment and discovery from a broader creator ecosystem.			👈	How do both options contribute to a shared goal?
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55	Frame the Tradeoff
56		Pros		Cons
57	Option 1: Reels at top	Accelerates short-form video growth Increases creator discovery Aligns with entertainment-based trends		Reduces authentic friend connections Risks alienating social-focused users Could cannibalize Stories engagement	👈	What are the main advantages and disadvantages in each option
58	Option 2: Stories at top (status quo)	Maintains Instagram's social connection focus Preserves familiar user experience Protects established engagement patterns		Limits Reels growth potential Weakens position against TikTok Slows adoption of monetizable video	👈
59	Summarize Fundamental Tradeoff	This decision represents a tradeoff between strengthening social connections (Stories) versus prioritizing entertainment and discovery (Reels).			👈	Convey what it ultimately boils down to
60	Decision with rationale	Keep Stories at top. This aligns with Meta's mission to "build the future of human connection" by prioritizing authentic social interactions. While Reels advances our entertainment technology, Stories better fulfills our core mission of fostering meaningful human connections. This balance preserves Instagram's differentiation from pure entertainment platforms. I would revisit if: Stories engagement plateaus while Reels grows rapidly; users show strong preference for entertainment; or TikTok significantly erodes our user base.			👈	Determine which option you believe aligns better to the company/product goal and articulate your rationale. Bonus: finish by sharing what would need to be true for you to change your mind.