How would you decide if you can introduce an "Ad Reel" after every 5th Instagram Reel video?

Introduction

The question at hand is whether to introduce an "Ad Reel" after every 5th Instagram Reel video. This scenario presents a critical trade-off between monetization and user experience in the Instagram Reels ecosystem. My response will analyze the potential impacts, metrics, and decision-making process for this product change.

Step 1

Clarifying Questions (3 minutes)

To fully understand the context and implications of this decision, I'd like to ask a few clarifying questions:

• What's the current monetization strategy for Instagram Reels, and how does this align with broader company goals?

• Why it matters: Understanding the existing revenue model helps assess the potential impact of introducing Ad Reels.
• Hypothetical answer: Reels currently monetize through in-feed ads and branded content partnerships.
• Impact: This would inform whether Ad Reels complement or potentially cannibalize existing revenue streams.

• What user segments are most active on Reels, and how might their behavior differ in response to Ad Reels?

• Why it matters: Different user segments may have varying tolerances for ad content.
• Hypothetical answer: Gen Z and Millennials are the most active Reels users, with high engagement but potentially lower ad tolerance.
• Impact: This would guide our approach to targeting and potentially segmenting the Ad Reel rollout.

• What technical capabilities do we have for Ad Reel insertion and targeting?

• Why it matters: Technical feasibility will impact implementation strategy and timeline.
• Hypothetical answer: We have the capability to insert ads dynamically based on user behavior and preferences.
• Impact: This would inform our experiment design and potential for personalization.

• What's the current average session duration for Reels viewing?

• Why it matters: This helps us understand how Ad Reels might impact overall engagement.
• Hypothetical answer: Average session duration is currently 15 minutes.
• Impact: This would help determine if inserting an Ad Reel every 5 videos is too frequent or about right.