What caused the sudden 50% decrease in ad revenue from Anghami's free tier service this month?

Introduction

The sudden 50% decrease in ad revenue from Anghami's free tier service this month is a critical issue that demands immediate attention. As we dive into this analysis, we'll systematically identify potential causes, validate hypotheses, and develop a comprehensive plan to address the root cause while considering both short-term and long-term implications for Anghami's business.

I'll approach this problem by first clarifying key details, ruling out external factors, and then diving deep into our product, user journey, and metrics. We'll generate data-driven hypotheses, conduct root cause analysis, and ultimately propose a structured plan for validation and resolution.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might have been a recent product change. Have there been any significant updates to the free tier service in the past month?

Why it matters: Recent changes could directly impact user behavior and ad impressions. Expected answer: Yes, we launched a new UI for the free tier last week. Impact on approach: If true, we'd focus on analyzing the impact of the UI change on user engagement and ad visibility.

• Considering the magnitude of the decrease, I'm wondering about our ad inventory. Has there been any change in our advertising partnerships or the number of ads we're able to serve?

Why it matters: A reduction in ad inventory could directly affect revenue. Expected answer: No changes in partnerships, but we're unsure about inventory levels. Impact on approach: If inventory is stable, we'd shift focus to user engagement and ad effectiveness.

• Given the specificity to the free tier, I'm curious about our user base. Has there been any significant shift in our free tier user demographics or total user count recently?

Why it matters: Changes in user composition could affect ad targeting and effectiveness. Expected answer: User count has remained stable, but we haven't analyzed recent demographic shifts. Impact on approach: If user count is stable, we'd investigate potential changes in user behavior or ad relevance.

• Considering potential technical issues, have there been any reported problems with ad delivery or tracking systems in the past month?

Why it matters: Technical glitches could lead to underreporting or failure to serve ads. Expected answer: No major reported issues, but we haven't done a deep dive into our ad tech stack recently. Impact on approach: If no known issues, we'd still include a technical audit in our investigation plan.