Evaluate Impact of Targeting Ads to High-Intent Users

Q: Evaluate Impact of Targeting Ads to High-Intent Users

This question evaluates a data scientist's competency in analytics and experimentation, focusing on ad allocation, user segmentation, revenue trade-offs, user experience impact, model learning rate, and overall marketplace health.

Q: How do I approach Analytics & Experimentation interview questions?

Analytics & Experimentation questions require understanding of core concepts and practice. PracHub provides solutions with explanations to help you master analytics & experimentation interviews.

Question

Ad Allocation to High-Intent Users Only

Scenario

A product manager proposes allocating all ad impressions to the "high-intent" user segment (users predicted to have a high probability of clicking/converting), and serving no ads to other users.

Assumptions (for clarity):

You operate a two-sided ads marketplace with finite ad inventory per day.
Users can be segmented by predicted intent (e.g., high vs. non-high).
Platform objectives include short-term revenue, user experience, and long-term growth.

Question

If we serve ads only to the high-intent segment, what are the main pros and cons in terms of:

Revenue (short-term yield and total revenue)
User experience (fatigue vs. relevance)
Long-term growth (market size, learning rate, and ecosystem health)

Hints: Consider short-term yield, user fatigue, market size, and model learning rate.

Evaluate Impact of Targeting Ads to High-Intent Users

Ad Allocation to High-Intent Users Only

Scenario

Question

Solution

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