How can MM balance increasing ad load in Stories to boost revenue against potential user engagement decline?

Introduction

Balancing ad load in Stories to boost revenue against potential user engagement decline is a critical trade-off for MM. This scenario involves weighing short-term financial gains against long-term user satisfaction and platform health. I'll analyze this trade-off by examining key metrics, designing experiments, and proposing a decision framework.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm assuming Stories is a key feature for MM, similar to Instagram or Snapchat. Could you confirm if this is correct and provide any specific context about MM's Stories feature?

Why it matters: Helps understand the product's importance in the ecosystem Expected answer: Confirmation of Stories' role and any unique aspects Impact on approach: Would influence the weight given to user experience vs. revenue

• Business Context: Based on the focus on revenue, I'm thinking this might be a critical growth lever. How does increasing ad load in Stories align with our current business priorities and revenue model?

Why it matters: Helps prioritize solution against business objectives Expected answer: High priority, directly impacts main revenue stream Impact on approach: Would justify faster timeline and more resources

• User Impact: I'm assuming we have different user segments interacting with Stories. Can you share insights on which user groups are most active and how they typically engage with ads in Stories?

Why it matters: Allows for targeted analysis and personalized solutions Expected answer: Breakdown of user segments and their ad interaction patterns Impact on approach: Would inform experiment design and metric selection

• Technical Feasibility: Considering the potential for increased ad load, are there any technical limitations or scalability concerns we should be aware of?

Why it matters: Ensures proposed solutions are technically viable Expected answer: Overview of current ad serving capabilities and limitations Impact on approach: Would influence the range of ad load increases we could test

• Timeline: Given the revenue focus, I'm wondering about the urgency of this initiative. Is there a specific timeline or revenue target we're working towards?

Why it matters: Helps balance short-term gains with long-term sustainability Expected answer: Quarterly or annual revenue goals, upcoming investor milestones Impact on approach: Would affect the aggressiveness of our testing and implementation strategy