Strategy question
As PM of LinkedIn feed, what would you show on the top right of the page-"Sponsored ads" or "People you may know"?
- Strategy
- Medium
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What this question tests
Tests balancing monetization against core product value on a high-visibility placement, with a clear recommendation and reasoning.
How to approach it
- Clarify the placement's role: top-right is high-visibility real estate that directly trades off between revenue (Sponsored ads) and core network growth (People You May Know).
- Consider LinkedIn's business model: ads and Premium subscriptions are major revenue drivers, so ad placement here has real near-term revenue value.
- Consider the network effect argument: PYMK expands each user's connections, which increases long-term platform stickiness and content relevance, indirectly growing ad inventory later.
- Propose a segmented answer: show PYMK to newer, low-connection-count users where network growth matters most, and Sponsored ads to established, highly-connected users where growth has plateaued.
- Recommend testing both against session engagement and long-term revenue per user, rather than picking one placement permanently without data.
What a strong answer includes
- Avoids picking one option outright and instead segments by user lifecycle stage, a nuanced answer that beats a flat pick.
- Explains the indirect revenue logic of PYMK (network growth feeds long-term ad inventory) instead of treating it as purely a growth-only feature.
- Uses an illustrative number, e.g. assume users with under 50 connections get 3x more value from PYMK than from an ad in this slot.
- Proposes measuring long-term revenue per user, not just immediate ad clicks, to fairly compare the two options.
Common mistakes
- Picking one placement without considering that the right answer may depend on user segment or lifecycle stage.
- Focusing only on short-term ad revenue and ignoring PYMK's indirect, long-term value to the network.
Likely follow-up questions
- How would you measure the long-term revenue impact of showing PYMK instead of an ad?
- What would change your recommendation for a user who already has 500+ connections?
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Learn the skill behind it
Chapters of the AI PM course that teach what this question tests.
- Chapter 4: Discovery and strategy for AI products
- Chapter 9: Prove it paid off: outcomes, economics, and pricing
- Chapter 14: Get the job: the AI PM interview loop