For Rokt's transaction marketing platform, should we emphasize improving AI-driven targeting capabilities or expanding into new geographic markets?

Introduction

The trade-off we're examining today is whether Rokt's transaction marketing platform should prioritize improving AI-driven targeting capabilities or expanding into new geographic markets. This decision is crucial for Rokt's growth strategy and will significantly impact our resource allocation, product development, and market positioning. I'll analyze this trade-off by considering the product's current state, potential impacts, key metrics, and experimental approaches to validate our hypotheses.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking Rokt's current market position is strong but facing increasing competition. Could you share our current market share and growth rate in existing markets?

Why it matters: Helps assess the urgency of expansion vs. improvement Expected answer: Strong market leader with 30-40% share, 20% YoY growth Impact on approach: High growth might favor AI improvement, slower growth could push for expansion

• Business Context: Based on our revenue model, I assume we're primarily focused on increasing transaction value for merchants. Is this correct, or are there other key revenue streams we should consider?

Why it matters: Aligns solution with primary business objectives Expected answer: Transaction value is primary, with secondary focus on merchant acquisition Impact on approach: Would prioritize AI improvements if transaction value is key

• User Impact: I'm thinking about our user segments. Can you tell me which segment (e.g., high-value merchants, specific industries) contributes most to our revenue?

Why it matters: Identifies key stakeholders for targeted improvements Expected answer: E-commerce and travel sectors are top contributors Impact on approach: Might influence geographic expansion choices or AI targeting focus

• Technical: Regarding our AI capabilities, what's our current level of personalization accuracy compared to industry benchmarks?

Why it matters: Assesses potential impact of AI improvements Expected answer: Slightly above average, with room for significant improvement Impact on approach: Large gap would favor AI investment, small gap might push for expansion

• Resource: Considering our current team structure, do we have more capacity in our AI/ML team or our market expansion team?

Why it matters: Helps understand feasibility of each option Expected answer: Stronger AI team, market expansion would require hiring Impact on approach: Might favor AI improvement if that team is better resourced