Determining the optimal ad load in News Feed

Q: Determining the optimal ad load in News Feed

This question evaluates a candidate's ability to model revenue-versus-experience trade-offs, estimate long-term customer lifetime value effects, and design user segmentation and experimentation for personalized ad frequency.

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

Scenario: Balancing Monetization and User Experience

You are asked to set a data-driven threshold for ad frequency ("ad load" = number of ads shown per unit of experience, e.g., per session or per feed length) that maximizes long-term value while protecting user experience.

Tasks

Determine the optimal ad load using marginal revenue vs. user tolerance and long-term LTV.
Segment users by ad tolerance and propose personalized caps.
Estimate long-term LTV impact of different ad loads.
Recommend a cautious rollout and monitoring strategy.

Question 1

How would you determine optimal ad load? (Hint: marginal revenue curve, user tolerance, long‑term LTV)

Determining the optimal ad load in News Feed

Scenario: Balancing Monetization and User Experience

Tasks

Question 1

Solution

Comments (0)