Metrics question

Ad revenue on Instagram increased but user satisfaction decreased. What do you do?

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What this question tests

Balancing competing metrics: diagnosing whether a revenue gain is coming at the cost of user experience and long term retention.

How to approach it

  1. Confirm both trends are real and check the time window and segments involved, not just aggregate numbers.
  2. Hypothesize the link: increased ad load or lower quality ad targeting could be driving both revenue up and satisfaction down.
  3. Segment satisfaction decline by user cohort, such as heavy versus light users, to see who is most affected.
  4. Check leading indicators of long term harm, like reduced time spent or increased app uninstalls among dissatisfied users.
  5. Recommend a path forward, such as capping ad frequency or improving targeting quality, and propose a metric to monitor the trade off ongoing.

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