Why has the click-through rate for sponsored product listings on Alibaba's 1688.com declined by 20% in the last two weeks?

Introduction

The recent 20% decline in click-through rate (CTR) for sponsored product listings on Alibaba's 1688.com over the past two weeks is a critical issue that demands immediate attention. This analysis will systematically investigate the root cause, considering both internal and external factors that may have contributed to this significant drop in performance.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal factor at play. Has there been any significant holiday or event in China that could have affected user behavior in the last two weeks?

Why it matters: Seasonal trends can significantly impact e-commerce metrics. Expected answer: Information about recent holidays or events. Impact on approach: If confirmed, we'd need to compare to historical seasonal data.

• Considering the specificity of the decline, I'm wondering about recent changes. Have there been any updates to the sponsored product listing algorithm or UI in the past month?

Why it matters: Recent changes could directly impact CTR. Expected answer: Details of any recent updates or changes. Impact on approach: If changes occurred, we'd focus on their potential impact.

• Given the nature of sponsored listings, I'm curious about advertiser behavior. Has there been any significant shift in the number or type of advertisers using the platform recently?

Why it matters: Changes in advertiser mix could affect content quality and relevance. Expected answer: Information on advertiser trends. Impact on approach: If confirmed, we'd investigate the impact of advertiser changes on user engagement.

• Thinking about user segments, I'm wondering if this decline is uniform across all user groups. Do we have data on how different user segments (e.g., new vs. returning, mobile vs. desktop) have been affected?

Why it matters: Segmented data could reveal targeted issues. Expected answer: Breakdown of CTR decline across user segments. Impact on approach: If certain segments are more affected, we'd focus our investigation on those specific user experiences.