Should WeChat prioritize user privacy or enhance targeted advertising capabilities?

Introduction

The trade-off between prioritizing user privacy and enhancing targeted advertising capabilities is a critical decision for WeChat's product strategy. This scenario involves balancing user trust and data protection against potential revenue growth and advertiser value. I'll analyze this trade-off by examining its impact on key stakeholders, evaluating potential outcomes, and proposing a data-driven approach to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: Based on recent privacy regulations, I'm thinking this trade-off might be driven by external factors. Could you provide more context on what's prompting this consideration?

Why it matters: Helps understand if this is a proactive or reactive decision Expected answer: Recent GDPR-like regulations in key markets Impact on approach: Would prioritize compliance and risk mitigation in the solution

• Business Context: Considering WeChat's diverse revenue streams, I'm curious about the current contribution of targeted advertising to our overall revenue. Can you share how significant this is to our business model?

Why it matters: Helps quantify the potential business impact of changes Expected answer: 30-40% of revenue from targeted ads Impact on approach: Would influence the weight given to advertising capabilities in the decision

• User Impact: Given WeChat's large user base, I'm thinking different segments might have varying privacy concerns. Do we have data on user attitudes towards privacy across our major markets?

Why it matters: Helps tailor the solution to user preferences Expected answer: Varying attitudes, with more privacy concerns in certain regions Impact on approach: Would consider a segmented or localized strategy

• Technical Feasibility: Considering the complexity of WeChat's ecosystem, I'm wondering about the technical challenges of implementing enhanced privacy measures. What's our current assessment of the technical effort required?

Why it matters: Helps understand implementation constraints Expected answer: Significant effort, estimated 6-12 months for full implementation Impact on approach: Would influence timeline and resource allocation in the recommendation

• Timeline: Given the potential impact on revenue and user trust, I'm curious about the urgency of this decision. Is there a specific deadline or event driving this timeline?

Why it matters: Helps prioritize this decision against other initiatives Expected answer: Aim to have a direction set within the next quarter Impact on approach: Would adjust the scope and depth of the proposed experiment