Should MadHive prioritize expanding its CTV inventory partnerships or focus on enhancing its existing audience targeting capabilities?

Introduction

The trade-off question at hand is whether MadHive should prioritize expanding its CTV inventory partnerships or focus on enhancing its existing audience targeting capabilities. This scenario involves balancing growth through partnerships versus improving core product functionality. I'll analyze this trade-off by examining the business context, user impact, technical considerations, and potential outcomes.

Step 1

Clarifying Questions (3 minutes)

• Business Context: I'm thinking MadHive's revenue model likely involves a take rate on ad spend. Could you confirm how MadHive generates revenue and if there are any specific growth targets we're trying to hit?

Why it matters: Helps prioritize which option aligns better with revenue goals Expected answer: Revenue from ad spend, with aggressive growth targets Impact on approach: Would lean towards inventory expansion if growth is the primary goal

• User Impact: Based on the nature of CTV advertising, I assume our primary users are advertisers and publishers. Can you provide more details on our user segments and their current pain points?

Why it matters: Identifies which option addresses user needs more effectively Expected answer: Mix of large brands and agencies, struggling with audience reach Impact on approach: Would favor audience targeting if reach is a major issue

• Technical Feasibility: Considering the complexity of CTV ecosystems, I'm curious about our current technical capabilities. How scalable is our platform for adding new inventory partners versus improving targeting algorithms?

Why it matters: Determines which option is more feasible to execute quickly Expected answer: Robust API for integrations, but targeting improvements require significant ML work Impact on approach: Might lean towards inventory expansion if it's easier to implement

• Resource Allocation: Given that both options require different skill sets, I'm wondering about our current team composition. Do we have more bandwidth in partnership management or data science/ML engineering?

Why it matters: Helps determine which option we're better equipped to pursue Expected answer: Stronger partnership team, but growing data science capabilities Impact on approach: Could influence decision based on team strengths and hiring needs

• Timeline and Market Pressure: I'm thinking about competitive pressures in the CTV space. Are there any urgent market dynamics or upcoming events (like upfronts) that we need to consider in this decision?

Why it matters: Identifies if there's a time-sensitive opportunity we need to capitalize on Expected answer: Upcoming TV upfronts season creating pressure for more inventory Impact on approach: Might prioritize inventory expansion to meet immediate market demands