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Product Management Root Cause Analysis Question: Investigating sudden ad revenue decrease for streaming service

Asked at iQiyi

15 mins

What caused the sudden 30% decrease in ad revenue from iQiyi's streaming service yesterday?

Problem Solving Data Analysis Strategic Thinking Streaming Media Digital Advertising Entertainment Technology
Data Analysis Root Cause Analysis Streaming Services Crisis Management Ad Tech

Introduction

The sudden 30% decrease in ad revenue from iQiyi's streaming service yesterday is a critical issue that demands immediate attention and thorough analysis. As we delve into this problem, we'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term and long-term implications for the business.

Our analysis will follow a structured framework, beginning with clarifying questions to establish context, followed by a methodical examination of potential causes, data analysis, and hypothesis formation. We'll then move on to root cause analysis, validation steps, and finally, propose a comprehensive resolution plan.

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 this could be a sudden change. Has there been any significant product update or change in ad serving algorithms in the last 48 hours?

Why it matters: Recent changes could directly impact ad performance. Expected answer: Yes, there was a minor update to the ad serving algorithm. Impact on approach: If yes, we'd focus on the update's impact; if no, we'd look at external factors.

  • Considering user segments, I'm wondering if this decrease is uniform across all user groups. Have you noticed any particular user segment more affected than others?

Why it matters: Helps identify if the issue is global or specific to certain users. Expected answer: The decrease is more pronounced in mobile users. Impact on approach: If segmented, we'd focus on the most affected group; if uniform, we'd look at system-wide issues.

  • Given the scale of the decrease, I'm curious about the stability of our measurement systems. Can we confirm that our ad revenue tracking systems are functioning correctly and consistently?

Why it matters: Ensures we're not dealing with a data anomaly. Expected answer: Yes, the tracking systems have been verified and are working correctly. Impact on approach: If verified, we proceed with analysis; if not, we first address measurement issues.

  • Considering external factors, has there been any significant change in advertiser behavior or major world events that could impact ad spending?

Why it matters: External factors could explain the sudden decrease. Expected answer: No major external events noted. Impact on approach: If yes, we'd factor in these external influences; if no, we'd focus more on internal factors.

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