I recently interviewed with a firm which gave me the following problem statement:
Facebook is facing a decline in sales/revenues in Europe. What steps will you take to rectify the problem?
My solution:
1. Increase Ad spend/advertiser
- Increase transparency/visibility to track performance of ads on Meta (automated dashboards)
- Extra Support to businesses - Ad design, creative, marketing insights to get the best ROI
- Upsell other new innovative formats - stories, reel, video, product markers, etc.
2. Increase number of Advertisers
- Incentivize & increase number of sales people/account managers
- Lower price/impression (to increase # impressions)
- Build partnerships with agencies (that handle brands' ad spend)
- Focus on and support SMEs (growing customer segment)
3. Launch alternative revenue streams
- Social Commerce: Storefronts and make money off each tx
- Business account subscriptions: Whatsapp/Messenger/Instagram
- Premium User Subscriptions: Exclusive ad-free and premium user generated content
- New products: Building a super-app - Payments, mCommerce, Dating, etc.
Have I structured the answer correctly? Am I on the right track or missing something here?
Thanks in advance!