The silent auction

A root cause analysis question from a product manager interview, set at Chirpline, a fictional social media / ads company.

The question

Skills this case tests

A starting metric tree

Ad revenue = ad impressions × CPM; impressions = DAU × ads per DAU; then split CPM by advertiser type and campaign objective

How to approach this case

Start by confirming how revenue is measured, when the drop began and whether billing data has been checked. Then split revenue into volume and price. The prompt says impressions held, so the real question is why each impression is now worth less. Before blaming advertisers, rule out changes on your own side: ad load, placements, fill rate, auction rules, floor prices and click-through rate. Next ask whether fewer advertisers are bidding or the same ones are bidding less. Cut by advertiser type and campaign objective. Most performance advertisers bid through automated systems, so know how an automated bid is set. Check the timing against recent launches. A strong close sizes the monthly loss, gives a fix for now and a monitor that catches this early next time, and names the guardrails you would watch while revenue recovers.

The full method for root cause analysis questions · A worked example answer

After the mock interview you get scores on five skills, what to fix with quotes from your answers, and the ideal path for this case.