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Product Management Root Cause Analysis Question: Investigating Jellysmack's YouTube optimization service revenue decline
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Nextsprints

Updated Jan 22, 2025

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Why has the average revenue per creator in Jellysmack's YouTube optimization service declined by 15% this quarter compared to last?

Data Analysis Problem Solving Strategic Thinking Social Media Content Creation Digital Marketing
Product Strategy Root Cause Analysis Creator Economy Revenue Analysis YouTube Optimization

Introduction

The decline in average revenue per creator for Jellysmack's YouTube optimization service is a critical issue that requires thorough analysis. I'll approach this problem systematically, examining both internal and external factors to identify the root cause and propose effective solutions.

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 there might be seasonal factors at play. Has this 15% decline been consistent across all creator categories, or are certain niches more affected?

Why it matters: Understanding the distribution of the decline helps focus our investigation. Expected answer: The decline varies across categories. Impact on approach: If certain niches are more affected, we'll prioritize those for deeper analysis.

  • Considering recent platform changes, I'm curious if YouTube has implemented any significant algorithm updates recently. Have creators reported any changes in their content visibility or engagement rates?

Why it matters: Platform changes can directly impact creator revenue. Expected answer: There have been some minor algorithm tweaks. Impact on approach: If confirmed, we'll need to assess how these changes affect our optimization strategies.

  • Thinking about our service offerings, have we made any recent changes to our optimization techniques or pricing model? I'm wondering if this could have inadvertently affected creator revenue.

Why it matters: Internal changes could be contributing to the revenue decline. Expected answer: No major changes to our core service. Impact on approach: If there have been changes, we'll need to evaluate their impact on creator revenue.

  • Considering market dynamics, has there been any significant shift in advertiser spending or CPM rates on YouTube during this quarter?

Why it matters: External market factors could be driving the revenue decline. Expected answer: Some fluctuation in ad spend, but nothing drastic. Impact on approach: If there's a market-wide trend, we'll need to adjust our strategy accordingly.

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