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Youtube revenue suddenly dropped 10%. Why?
I think approaching such a question requires us to understand how Youtube earns revenue and clarify this with the interviewer. Let’s assume that Youtube earns revenue through Youtube Premium and Advertisements.
Clarifying Question(s):
Once we would have clarified that: we can now scope the question:
- Has the revenue-drop relative to a geographic region? United States
- When did you notice this drop? Last three days
- Has Youtube watched time decreased from average in the past three days in the USA? No
- Where is the sale drop more prevalent, in the Youtube Premium or Advertisement? Advertisement
Internal Question(s):
- Have we made any updates on the YouTube platform that was released in the last three days? No
- Have we been getting any reports/feedback from customers regarding them having difficulty making advertisements? Nothing to draw too much attention.
3. Have there been a decrease in our metric boards on the number of ads shown daily in the last three days? Yes
4. Have we made any changes to the YouTube payments website/mobile page in the last three days? Teams work rigorously to make experiences better, so yes changes we made.
5. Can you say whether the changes made in the last 3 days were reciprocated to all necessary dependent functions to those changes? We have not tested whether the other functions are giving issues.
External Questions:
- Are there any campaigns from our competitors that you know of that may divert customers? Not that we know of
- Has there been any Government restrictions or policy directive on the regulation of ads in the US? None, that we know of
- Are there any cheaper Advertisement options available from your competitors? None that we know of
4. Are any of the banking payments processing down in the US? None, that we know of.
Conclusion:
This seems to be an issue of the Advertisement page, whereby it's affecting the payments of publishing ads and also the showing of those ads. Changes were made to the Payments page we need to check and test the functional changes we made and see whether those changes are causing any problems or feedback that is affecting the processing of payments which is affecting YouTube’s revenue
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