Metrics question

What metrics would you look at as a product manager for Instagram ads?

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What this question tests

Metric tree for an advertising product balancing advertiser value, user experience, and revenue.

How to approach it

  1. State the three stakeholders, advertisers wanting conversions and ROI, users wanting relevant, non intrusive ads, and the platform wanting sustainable revenue.
  2. Define advertiser facing metrics, click through rate, conversion rate, and return on ad spend, since advertiser retention depends on these.
  3. Define revenue metrics, total ad revenue and revenue per thousand impressions, reflecting the direct business outcome.
  4. Define user experience guardrails, ad relevance score or negative feedback rate, since a poor ad experience risks lower overall platform engagement.
  5. Balance all three together, not maximizing revenue per impression if it comes with rising negative feedback rate, which threatens long term user trust.

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