AI & Technical question

How would you design an algorithm to rank ads in the Google Play Store?

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What this question tests

Tests technical and product thinking on a ranking system with an inherent conflict between relevance and revenue, a classic ads-ranking trade-off.

How to approach it

  1. Clarify the objective: rank ads in Play Store search/browse results to balance relevance to the user's intent, app quality, and revenue (bid) from advertisers.
  2. Define the input signals: the advertiser's bid, predicted click-through rate (pCTR) for this user and query, predicted post-click quality (install rate, uninstall rate, app rating), and query relevance.
  3. Propose the ranking formula structure: rank by expected value, roughly bid times pCTR times a quality multiplier, similar to standard auction-based ad ranking (as used in search ads).
  4. Address quality control: apps with high uninstall rates or low ratings should get a quality penalty in the multiplier so a high bid cannot buy visibility for a bad app.
  5. Address user trust: clearly label sponsored results and cap the number of ad slots per results page so organic relevance is not overwhelmed.
  6. Define success metrics: ad revenue per search, but guarded against user-harm signals like app uninstall rate within a day and search abandonment rate.

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