Strategy question

How would you increase the number of monthly active advertisers on Instagram?

Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.

What this question tests

Tests growth strategy for the advertiser side of a two-sided ad marketplace, distinct from consumer growth tactics.

Clarify the funnel: advertiser growth means moving businesses from awareness to a first campaign to a recurring monthly spender.
Segment on small and medium businesses, the largest underpenetrated pool, since large brands already advertise heavily on Instagram.
Identify the pain point: SMBs find campaign setup complex and are unsure the spend will pay off, so they hesitate to start or don't return after one try.
Propose a simplified, guided campaign creation flow with clear expected-results estimates, plus a small ad-credit incentive for first-time advertisers.
Define success as new-advertiser activation rate, and critically, second-month return rate, since one-time spenders don't count as monthly active.

Distinguishes advertiser acquisition from advertiser retention, and correctly treats monthly active as a repeat-usage metric, not a one-time signup.
Targets SMBs specifically as the highest-leverage underpenetrated segment rather than a generic all-advertisers answer.
Names a concrete complexity-reduction mechanism, guided setup with expected-results estimates, addressing the real hesitation barrier.

Focusing only on first-time signups without addressing whether advertisers return in following months.
Proposing tactics aimed at large brands who are already well served, missing the real growth opportunity in SMBs.

How would you measure if the ad credit is attracting advertisers who wouldn't have spent anyway?
How would you help advertisers whose first campaign underperforms and might churn?