Engagement on Facebook stories is going up but Ads revenue is going down. What will you do?

Facebook stories is bringing community together by increasing engagement and generating revenue by sharing business message with engaged audiences through the captivating form of video.

Problem statement: Despite of increasing Engagement, Ad’s revenue is going down.

Brainstorming Solutions

I will work with product team on monetizing the Ads and try to know the reason for decreasing revenue.

· Any recent changes to Facebook/web browser/apps company policy: It will make it harder to track users and restrict advertisers from accessing valuable data for targeting ads.

· Ad content is not appealing to users: I will work on educating Content creators with content and size of content with Audience selection.

· Ad placement is not appropriate: I will do A/B test on Placement of Ads for revenue increase.

A/B test: At what percentage of showing ads, the CTR plateaued.

Hypothesis: More ads won’t provide relevant and interesting information to user.

Experimentation Group: Showing ads in 10% (1 ads every 10 post) to 50% (1 ads every 2 posts) of Stories, in incremental of 10%.

Success Metrics:

1. Average session time for each group

2. WAU/MAU for each group

Trade-offs: MAU could decline with increasing ads, but clicks per MAU could go up. This would increase Ad’s revenue, but it might not play into Facebook’s long term user retention Goals.

I will decide on Average session time with placement of ads to maximize revenue.

Once we have a baseline information, I will push this to a larger group by monitoring more variables like user age, location, Category ads (Electronics, vehicle, grocery etc.) and format (photos, videos) for maximizing revenue.