Should Reddit prioritize user engagement or ad revenue when designing the feed algorithm?

Introduction

The trade-off between prioritizing user engagement and ad revenue in Reddit's feed algorithm design is a critical decision that impacts the platform's long-term success. This scenario involves balancing the needs of users, advertisers, and the company's financial goals. I'll analyze this trade-off by examining key metrics, stakeholder impacts, and potential outcomes to provide a strategic recommendation.

Step 1

Clarifying Questions (3 minutes)

• Based on recent platform changes, I'm thinking this might be related to the redesign rollout. Could you provide more context on what's driving this decision now?

Why it matters: Helps understand if this is a proactive or reactive measure Expected answer: Recent decline in user engagement metrics Impact on approach: Would focus on short-term user retention strategies

• Considering our revenue model, I assume ad revenue is a significant portion of our income. Can you confirm the current split between ad revenue and other income streams?

Why it matters: Determines the financial impact of prioritizing engagement over direct ad revenue Expected answer: Ad revenue accounts for 70-80% of total revenue Impact on approach: Would need to carefully balance short-term revenue needs with long-term growth

• Looking at user segments, I'm curious about the engagement patterns of our most active communities. How do engagement levels vary across different subreddit categories?

Why it matters: Identifies potential targeted approaches for different user groups Expected answer: Significant variation, with some niche communities showing higher engagement Impact on approach: Might consider a segmented algorithm strategy

• Regarding technical feasibility, I'm wondering about our current algorithm's flexibility. How easily can we implement and test changes to the feed algorithm?

Why it matters: Determines the scope and timeline of potential solutions Expected answer: Modular system allows for relatively easy adjustments Impact on approach: Could propose more aggressive testing and iteration

• Considering resource allocation, I'm thinking this might require cross-functional collaboration. What teams and resources are available for this project?

Why it matters: Helps scope the project and identify potential bottlenecks Expected answer: Limited data science resources but strong product and engineering support Impact on approach: Would focus on solutions that leverage existing team strengths