In calculating the additional revenue for Option #1 (increasing the ad slots from 3 to 4), the case assumes that the fill rates remain the same. Can we assume, however, that there might be a decreased fill rate in response to increasing available ad slots? If the average fill rate is only 33% for the current average of 3 available slots per page, then wouldn't it be fallacious to assume that demand from advertisers would increase when increasing the available slots?
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Increasing Ad Slots: Potential Effects?
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Hi Jonathan,
Excellent point!
I completely agree with you.
However, no, never asssume in a case. Rather, clarify.
But, yes, your thinking is right and it would be a great thing to raise in the case itself!
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Hey!
That's a great question.
You should make that part of your discussion with the interviewer.
At the end of the day, what most candidates forget is that the interview is meant to simulate a conversation with the client.
Same as with the client, you would challenge some of these assumptions or at least try to understand what they are based on.
Best,
Cristian
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