PM Interview Question →You are the PM for a B2C product that has an advertisement-based monetization model with significant and steady daily revenues. One day, there are no ads served and the revenues plummet to zero. What would be your strategy, as a Product Manager, to deal with this crisis? Use DISC Framework

Published in

Bootcamp

4 min readDec 3, 2024

When managing a product with an advertisement-based monetization model, encountering a sudden revenue drop due to ads not being served is a significant crisis. As a Product Manager, handling such a scenario requires a systematic, proactive, and strategic approach. Below is a detailed framework and response strategy to address such a challenge effectively.

1. Understand the Problem: Diagnosing the Root Cause

Objective: Quickly identify why ads are not being served.

Questions to Ask:
Is the issue related to ad demand or inventory supply?
Are there technical problems with the ad-serving infrastructure (e.g., SDK, API integration, or servers)?
Have there been policy changes by ad partners (e.g., compliance issues or account suspension)?
Are users encountering ad blockers or device-specific restrictions?
Action Steps:
Data Analysis: Check ad request logs, error rates, and server health metrics.
Communication: Immediately connect with the advertising partners or platforms to understand any changes or downtimes.
User Feedback: Investigate any spikes in user complaints about ads not displaying.

2. Mitigate Immediate Impact

Objective: Limit revenue loss while resolving the underlying issue.

Quick Wins:
Enable Backup Ad Networks: Partner with multiple ad networks to switch traffic if one fails.
Direct Partnerships: Temporarily serve in-house or direct-sourced ads.
Monetization Diversification: Use other monetization channels such as paid subscriptions, microtransactions, or freemium models if implemented.
User Experience Preservation:
Avoid overloading users with other intrusive monetization methods.
Communicate transparently with users if ad-supported features are affected.

3. Root Cause Resolution

Objective: Solve the issue at its core to restore normal operations.

Technical Fixes:
Debug ad-serving systems and prioritize resolution of SDK/API issues.
Ensure compliance with ad network policies.
Revert any recent code changes that could have disrupted ad functionality.
Infrastructure Improvements:
Set up real-time monitoring for ad requests and server availability.
Implement fallback mechanisms for future outages (e.g., cache ads for a short duration).
Partnership Management:
Work with ad platforms to improve collaboration and create escalation paths for future crises.

4. Long-Term Strategy

Objective: Build resilience to prevent similar crises in the future.

Diversify Revenue Streams:
Explore non-advertising revenue models like subscriptions, freemium upgrades, or in-app purchases.
Test user willingness to pay for an ad-free version or premium features.
Redundancy and Resilience:
Partner with multiple ad networks to avoid single-point dependencies.
Use machine learning to optimize ad placements and manage inventory intelligently.
Crisis Playbook:
Develop a documented response plan with clear escalation paths, checklists, and fallback strategies.
Train the team to handle future crises efficiently.

A Framework to Solve Ad Revenue Crises

To simplify the resolution process, use the following 4-step framework: “DISC” (Diagnose, Impact Mitigation, Solve, Continuity).

In conclusion, an ad revenue crisis is a wake-up call for Product Managers to build resilience, ensure continuity, and diversify revenue streams. By implementing the DISC framework, you can navigate such challenges with confidence and emerge stronger.

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