What caused the sudden 35% decrease in click-through rates for Rakuten Advertising's display ad campaigns last week?

Introduction

The sudden 35% decrease in click-through rates for Rakuten Advertising's display ad campaigns last week is a critical issue that demands immediate attention. This significant drop could have far-reaching implications for our advertising partners and overall revenue. I'll approach this problem systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking this could be related to a recent campaign change. Have there been any significant alterations to our ad targeting or creative strategies in the past two weeks?

Why it matters: Campaign changes often directly impact CTR. Expected answer: Yes, we implemented a new AI-driven targeting algorithm. Impact on approach: If confirmed, we'd focus on algorithm performance and data inputs.

• Considering the scale of the decrease, I'm wondering about technical issues. Have we experienced any outages or latency problems in our ad serving infrastructure recently?

Why it matters: Technical problems can cause widespread performance drops. Expected answer: No major outages, but there were some server upgrades. Impact on approach: We'd investigate potential side effects of the upgrades.

• Given the competitive nature of digital advertising, I'm curious about market dynamics. Have we noticed any significant changes in competitor behavior or industry trends?

Why it matters: External factors could be influencing our performance. Expected answer: A major competitor launched a new ad format last month. Impact on approach: We'd analyze our ad formats and consider innovation strategies.

• Thinking about user experience, I'm interested in any changes to the websites where our ads are displayed. Have there been any notable updates to our publisher partners' sites?

Why it matters: Changes in ad placement or site design can affect CTR. Expected answer: Several key publishers redesigned their mobile sites. Impact on approach: We'd focus on mobile performance and ad placement optimization.