The ad revenue constraint is what makes this interesting.
Start by clarifying the goal of Instagram Shops: to enable seamless in-app shopping and drive business outcomes for merchants. Then define success through a balanced set of metrics across the merchant and buyer journey, explicitly excluding ad revenue. Finally, prioritize metrics and explain how you'd measure them.
Pro tip: Emphasize that success should be measured by the health of the ecosystem—merchant success and buyer satisfaction—not just GMV, because sustainable growth requires both sides to thrive. Also, mention that you'd establish a north star metric and guardrail metrics to prevent unintended consequences.
Confirm that the goal is to drive commerce on Instagram without relying on ad revenue, focusing on enabling transactions and merchant success.
Consider the needs of merchants (sellers), buyers (consumers), and Instagram as the platform, ensuring metrics reflect value for each.
Propose metrics across acquisition, engagement, conversion, and retention for both merchants and buyers, such as number of active shops, product views, add-to-cart rate, purchase conversion, GMV, repeat purchase rate, and merchant retention.
Choose a north star metric (e.g., GMV from Shops) that aligns with the objective, and select a few supporting metrics to track progress.
Describe how you would measure these metrics (e.g., through analytics dashboards, A/B tests, cohort analysis) and set up guardrails to monitor potential negative effects.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.