Why has Amobee's DSP platform seen a 15% drop in daily active users over the past month?

Introduction

The recent 15% drop in daily active users (DAU) for Amobee's DSP platform over the past month is a significant concern that requires immediate attention and a thorough root cause analysis. As we delve into this issue, we'll follow a structured approach to identify, validate, and address the underlying factors contributing to this decline. Our goal is to not only understand the immediate causes but also to develop strategies for recovery and long-term growth.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this drop coincided with any particular industry events or seasonal patterns we've seen in previous years?

Why it matters: Seasonal trends could explain temporary fluctuations and inform our recovery strategy. Expected answer: No significant seasonal patterns observed in previous years during this period. Impact on approach: If seasonal, we'd focus on short-term engagement strategies; if not, we'd dig deeper into platform-specific issues.

• Considering user segments, I'm curious about the distribution of the decline. Are we seeing a uniform 15% drop across all user types, or is it more pronounced in specific segments?

Why it matters: Identifying affected segments helps pinpoint potential causes and tailor solutions. Expected answer: The decline is more significant among small to medium-sized advertisers. Impact on approach: We'd focus on understanding the unique needs and pain points of SMB advertisers.

• Thinking about recent changes, have there been any significant updates to the platform or modifications in our pricing structure in the weeks leading up to this decline?

Why it matters: Recent changes could directly impact user behavior and platform adoption. Expected answer: A new UI was rolled out three weeks ago, and a slight price increase was implemented for certain features. Impact on approach: We'd investigate the usability of the new UI and the impact of pricing changes on affected user segments.

• Considering competitive landscape, has there been any notable movement from our competitors, such as new feature launches or aggressive pricing strategies?

Why it matters: External competitive factors could be drawing users away from our platform. Expected answer: A major competitor launched a simplified, lower-cost offering targeting small businesses. Impact on approach: We'd need to reassess our value proposition and potentially adjust our product strategy for the SMB segment.