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Product Management Root Cause Analysis Question: Investigating sudden decrease in click-through rates for location-based advertising
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Nextsprints

Updated Jan 22, 2025

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Asked at Blis

15 mins

What caused the sudden 30% decrease in click-through rates for Blis's location-based advertising campaigns last week?

Data Analysis Problem Solving Technical Understanding AdTech Mobile Advertising Location Intelligence
Data Analytics Root Cause Analysis Ad Tech CTR Optimization Location-Based Advertising

Introduction

The sudden 30% decrease in click-through rates for Blis's location-based advertising campaigns last week is a critical issue that demands immediate attention. As we dive into this analysis, we'll systematically explore potential causes, validate hypotheses, and develop a comprehensive plan to address the root cause while considering both short-term fixes and long-term strategic implications.

Framework overview

This analysis follows a structured approach covering issue identification, hypothesis generation, validation, and solution development.

Step 1

Clarifying Questions (3 minutes)

  • Looking at the timing, I'm thinking this could be related to a recent campaign change. Have there been any significant alterations to our campaign strategies or targeting in the past two weeks?

Why it matters: Campaign changes could directly impact CTR. Expected answer: Yes, we adjusted targeting parameters. Impact on approach: If confirmed, we'd focus on analyzing the specific changes made.

  • Considering the scale of the decrease, I'm wondering about potential technical issues. Have we received any reports of ad delivery problems or tracking discrepancies from our partners?

Why it matters: Technical glitches could artificially deflate CTR. Expected answer: No major issues reported. Impact on approach: If issues are found, we'd prioritize technical investigation.

  • Given the location-based nature of our ads, I'm curious about any geographical patterns. Is the 30% decrease uniform across all regions, or are some areas more affected than others?

Why it matters: Regional variations could point to localized factors. Expected answer: Varied impact across regions. Impact on approach: We'd segment our analysis by region to identify potential local influences.

  • Thinking about user behavior, have we noticed any changes in engagement patterns beyond CTR? For example, has there been a shift in the types of locations or times when users are most active?

Why it matters: Changes in user behavior could indicate broader trends affecting CTR. Expected answer: Some shifts in peak engagement times. Impact on approach: We'd analyze the correlation between engagement patterns and CTR.

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