Should Rokt prioritize expanding its e-commerce partnerships or focus on enhancing its existing ad placement algorithms for better conversion rates?

Introduction

The trade-off question at hand is whether Rokt should prioritize expanding its e-commerce partnerships or focus on enhancing its existing ad placement algorithms for better conversion rates. This scenario involves balancing growth through new partnerships against optimizing current performance. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and resource allocation.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking Rokt's revenue model is primarily based on a percentage of successful transactions. Could you confirm if this is correct, and if there are any other significant revenue streams?

Why it matters: Helps understand the financial implications of each option Expected answer: Confirmation of revenue model, possibly with additional details Impact on approach: Would influence the weight given to conversion rate improvements vs. partnership expansion

• User Impact: Based on Rokt's e-commerce focus, I assume we're primarily dealing with online shoppers. Are there specific user segments or behaviors we're particularly concerned about?

Why it matters: Ensures we're considering the right user groups in our decision Expected answer: Details on key user segments or behaviors Impact on approach: Would help tailor our strategy to maximize impact on the most valuable user groups

• Technical Feasibility: Regarding the ad placement algorithms, what's our current technical capability for enhancement? Are there any major limitations or opportunities we should be aware of?

Why it matters: Determines the potential impact and feasibility of algorithm improvements Expected answer: Overview of current capabilities and potential for improvement Impact on approach: Would influence the resources and timeline needed for algorithm enhancements

• Resource Allocation: How are our teams currently structured between partnership management and technical development?

Why it matters: Helps understand the resource trade-offs involved in each option Expected answer: Breakdown of team allocation and any constraints Impact on approach: Would inform the feasibility and timeline for implementing either strategy

• Timeline and Urgency: Are there any upcoming market events or competitor moves that might influence the urgency of this decision?

Why it matters: Helps prioritize short-term vs. long-term considerations Expected answer: Information on market dynamics or competitive pressures Impact on approach: Would affect the timeline and risk assessment for each option