Strategy question
Why is video so important to improve ad monetization?
- Rakuten
- Strategy
- Easy
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What this question tests
Understanding of why video commands premium ad value compared to other formats, relevant for ad monetization strategy.
How to approach it
- Frame the answer around advertiser demand, since video ads typically command higher CPMs than display or native formats.
- Explain why: video captures more attention and enables richer storytelling, which advertisers value for brand campaigns, not just direct response.
- Note that video supports both brand awareness and performance goals, widening the advertiser base willing to pay a premium.
- Mention completion and viewability metrics as more meaningful signals for video, giving advertisers more confidence in what they're paying for.
- Address the supply side too, noting that video inventory is often scarcer than display inventory, supporting higher prices.
- Tie the answer back to Rakuten specifically, noting a growing video or streaming surface as a new premium inventory type to monetize.
What a strong answer includes
- Explains the demand-side driver precisely, video ads support both brand and performance goals, widening advertiser willingness to pay versus formats suited only to one.
- Names supply scarcity explicitly, since video ad slots are naturally more limited than banner placements, supporting a price premium.
- Connects completion rate as a trust-building metric for advertisers, since it signals real attention was captured, unlike a passive impression.
- Ties the general principle back to Rakuten's business, noting video or streaming surfaces represent a growth opportunity for premium ad revenue.
Common mistakes
- Giving a vague answer like 'video is just more engaging' without explaining the underlying demand and supply dynamics.
- Not connecting the answer back to Rakuten's specific ad monetization context.
- Ignoring the supply-side scarcity argument entirely.
Likely follow-up questions
- How would you grow video ad supply without hurting user experience?
- What would you do if video CPMs started declining due to oversupply?
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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