Why has InMobi's programmatic demand platform seen a 20% decline in daily active advertisers over the past quarter?

Introduction

InMobi's programmatic demand platform has experienced a concerning 20% decline in daily active advertisers over the past quarter. This significant drop warrants a thorough investigation to identify the root cause and develop effective solutions. I'll approach this analysis systematically, examining both internal and external factors that could be contributing to this decline.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Has this decline coincided with any particular industry events or seasonal advertising trends?

Why it matters: Seasonal patterns could explain temporary fluctuations. Expected answer: No significant seasonal trends identified. Impact on approach: If seasonal, we'd focus on cyclical strategies; if not, we'd investigate other factors.

• Considering user segments, I'm wondering if this decline is uniform across all advertiser types. Have you noticed any particular segments (e.g., small businesses, large enterprises) being more affected than others?

Why it matters: Segment-specific issues require targeted solutions. Expected answer: Small to medium-sized businesses show a higher churn rate. Impact on approach: We'd prioritize investigating SMB-specific pain points and retention strategies.

• Thinking about recent changes, has there been any significant platform updates or policy changes in the last quarter that might have impacted advertiser experience or performance?

Why it matters: Internal changes could directly correlate with the decline. Expected answer: A new bidding algorithm was implemented two months ago. Impact on approach: We'd focus on analyzing the impact of this algorithm on advertiser performance and satisfaction.

• Considering market dynamics, have there been any notable shifts in competitor offerings or pricing structures during this period?

Why it matters: Competitive pressures could be drawing advertisers away. Expected answer: A major competitor launched an aggressive pricing campaign. Impact on approach: We'd need to assess our value proposition and pricing strategy in the context of the competitive landscape.