Expert Answer
Anonymous
Clarification:
- Ads on Facebook platform or all the platforms within meta?
- What type of Ads?
- Any category or any industry?
- All devices or only mobile/ web
- Gradual Drop or A sudden Drop?
- Any geography in particular?
Importance:
Ads are the most important source of revenue for Facebook and hence this would be critical problem to address at priority. It almost generates 98% of revenue from ads.
System Factors:
- Data Pipeline Issues?
- Metric definition has been updated?
- Data query issues?
- Is the data NRT?
External/ Macroeconomic Factors:
- Competitors are TikTok, snapchat are these also facing any drop in revenue?
- Any bad press like app being deleted form Google store/ Apple’s App store
- Any changes in legal contracts between advertisers using the platform
- Any regulation change being made from government or industry wide
- Any disruption in advertising industry?
Internal Factors:
- Journey Map
o Viewer
o User Logs In – DAU/WAU
o User lands into the homepage: Avg. No of users on fb Homepage/min in a Day & In a week
o Views News Feed: Avg. Time Spent on news feed/ User In a Day/ Week
o Views Ads on News Feed: No of ads shown per user in min
o Viewer clicks on ads: Avg. CTR/ user day
o Viewer lands on ad page/ website: No of clicks, Bounce off Rate
o Views buy/ make transactions: Conversion Rate
o Viewers Like/ Comment/ Share: Reaction Rate/ Ad shown to every user in a day & week
o Viewer can take action on the ad: Report Rate, Hide Rate, Save Rate
o Open parallel apps such as messenger, groups, events etc. DAU & avg time spent by users of these apps and pages etc
- Root Cause: The time spent / user is decreasing
Hypothesis:
a) Session Time Outs
b) New Feature Launched to control screen time
c) Bounce Back URL is broken
d) Accessibility Issue (changes in UI)
e) Showing feed with is very irrelevant
Mitigation Plan:
- Launch/ Enhance features focusing on product stickiness
- Adjust the ad display frequency based on the avg time spent
- Assess if there is any change in user behavior and accommodate features to address those adjustments
