Strategy question
Identify a new monetization strategy for Instagram.
- Strategy
- Hard
Practice this question out loud. An AI interviewer asks it, follows up like a real interviewer would, and scores your answer. Type or speak.
Start a mock interview on this question · Mock interview from a job description
What this question tests
Product strategy: can you size a new revenue lever for Instagram without leaning on more ads or hurting the feed experience.
How to approach it
- Confirm scope: incremental revenue this year versus a new business line over 2-3 years.
- Segment users into casual scrollers, creators and small business sellers, since willingness to pay differs sharply by segment.
- Map current revenue (feed, story and Reels ads) against underused surfaces like DMs, Shop and creator tools.
- Propose 2-3 concrete ideas, such as a Shop checkout take rate or a paid creator subscription tier.
- Pick one, define target segment, pricing logic and cannibalization risk against existing ad revenue.
- State the metric that proves it worked, e.g. ARPU lift or seller attach rate.
What a strong answer includes
- Anchors on sellers already using Instagram Shop rather than trying to extract more from casual users.
- Proposes a mechanism, not just a category: e.g. a 2-3% take rate on Shop checkout (stated as an assumption), not a vague 'subscriptions'.
- Explains how organic reach stays protected so businesses aren't forced to pay to be seen.
- Names GMV through Shop and seller retention as the metrics that would validate the bet.
Common mistakes
- Defaulting to 'show more ads' without addressing fatigue or brand risk.
- Ignoring how the idea affects creators and users, only talking about Meta's revenue.
Likely follow-up questions
- How would you price this differently for a small seller versus a large brand?
- What would you look at in the first 90 days to know it's working?
- How does this interact with Meta's existing ad revenue on Instagram?
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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