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Randi Zuckerberg: Video is No. 1 thing people want

On the eve of Twitter's much-hyped initial public offering, Randi Zuckerberg, the sister of Facebook founder Mark Zuckerberg, told CNBC on Wednesday that the best way social media companies can engage users is through mobile video platforms.

"You have to engage users in new ways today," Zuckerberg said on "Squawk on the Street." "Now it's all about visuals. People are savvy with their camera phones. Video is the No. 1 thing people want to do now. People want to tell their story."

(Read more: Facebook earnings: Inside its stock roller-coaster ride)

Zuckerberg, the former marketing director of Facebook, said the focus on engagement represents a sea change for social media companies from their earlier days, when the emphasis on the number of users was paramount.

She added that social media companies like Facebook and soon-to-be-public Twitter need to a find a balance between an optimal user experience and increased revenue streams.

"It's an issue that all of these sites face," Zuckerberg told CNBC. "You're always walking a fine line between having the best user experience possible. You want to keep it great without cluttering it with ads."

(Read more: Cramer: Facebook still undervalued, expect 'growth galore')

Randi Zuckerberg
Trisha Leeper | WireImage | Getty Images
Randi Zuckerberg

Since leaving Facebook, Zuckerberg has ventured into publishing and founded Zuckerberg Media. She recently wrote two books on social media, one a children's book called "Dot." and the other called "Dot Complicated." Both books are about finding a balance between life and technology, she said.

Zuckerberg said social media companies should anticipate a growing need among consumers to unplug from their always-connected mobile devices.

"It's definitely a growing trend of consumers," Zuckerberg said. "Consumers are thinking more about unplugging and finding that balance."

—By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street."

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