Learn about Monetization, Ad Tech and Product Operations
In this edition, I shall provide a summary of my latest podcast episode with Anurag Verma about Ad Tech, Product Monetization.
We will talk about Product Operations in a product company.
Product Talk with Malthi
In my last episode we talked about AdTech and Product Monetization with Anurag Verma. Anurag is a seasoned PM Leader at MakeMyTrip and has worked with Disney+ Hotstar, InMobi, and Goldman Sachs. Anurag has successfully built B2C and B2B monetization products for Global markets. His expertise spans Online Travel, OTT, and AdTech.
Watch the full video here. Here is a quick summary of the episode.
Anurag delves into various monetization strategies beyond ad tech. He explains how in-app purchases can be a substantial revenue stream for gaming publishers, especially for immersive games where users are more likely to make purchases that enhance their gaming experience. He emphasizes the importance of non-intrusive ad formats like sponsored listings and brand stores, which integrate seamlessly into the user experience. Sponsored listings, for example, can boost product visibility without disrupting the user’s interaction with the app, while brand stores can create engaging, tailored environments for users.
Anurag also highlights the significance of data monetization through strategic partnerships. He uses the example of Flipkart and Hotstar, where user data from one platform can enhance ad targeting on another. This approach allows companies to leverage their data assets more effectively and create mutually beneficial relationships with other businesses.
Addressing the challenge of maintaining a balance between monetization and user experience, Anurag advocates for native ad formats and contextual ads that blend seamlessly into the user environment. He shares industry-leading examples, such as Facebook's in-feed ads and playable ads in gaming, which enhance engagement without disrupting the user experience. Playable ads, for instance, allow users to interact with a game within the ad itself, providing a preview that can drive higher engagement and conversion rates.
Anurag underscores the importance of data-driven decision-making in optimizing ad performance. He advises product managers to closely monitor engagement metrics, such as click-through rates and conversion rates, to ensure that ads are effective and not detrimental to the user experience. By analyzing these metrics, product managers can fine-tune their strategies to maximize revenue while maintaining high user satisfaction.
For aspiring product managers interested in ad tech, Anurag recommends starting with large publishers to gain a solid understanding of basic principles before diving into the complexities of the ad network world. He underscores the importance of aligning product strategy with stakeholder goals to reduce friction and enhance collaboration across cross-functional teams.
Key Metrics for Ad Monetization Success
Understanding the right metrics is essential for optimizing ad monetization strategy. Some Key metrics recommended by Anurag: -
Click-through rates (CTR): This measures how often users click on an ad.
Conversion rates: Tracks the percentage of users who complete a desired action after clicking an ad.
Video ad metrics: Beyond simple clicks, video ads require deeper analysis. Quartile metrics (measuring viewership at 25%, 50%, and 75% of the video) and audio metrics are crucial for understanding audience engagement and ad effectiveness.
Brand lift studies: These surveys measure how ad exposure impacts brand perception and purchase intent.
eCPM (effective cost per mille): This metric indicates the revenue generated per 1,000 ad impressions, helping evaluate ad performance and publisher earnings.
Conversions per mille (CPM): This metric focuses on the number of conversions generated per 1,000 ad impressions, a critical indicator for performance-based advertising.
By closely monitoring these metrics, one can fine-tune ad campaigns, optimize ad placements, and maximize revenue.
Stakeholder collaboration
Anurag emphasizes the importance of tailoring ad solutions to specific stakeholder needs. For instance, creating custom ad formats can expedite sales cycles while simultaneously reducing the operational burden on ad teams.
To effectively manage these complexities, proactive planning is key. By aligning stakeholder goals with product roadmaps and product strategy, product managers can streamline processes and minimize unnecessary meetings. It's about anticipating needs and building solutions that empower every stakeholder involved.
Links to the episode:
YouTube
Apple Podcast
Spotify
Next, we will talk about Product operations how it helps to accelerate the revenue of the product.
Product Operations: Your Ally in Building Better Products Faster
Product Operations (ProdOps) is a function within an organization that focuses on optimizing the efficiency and effectiveness of the product development process. Essentially, it's about creating a smooth-running operation that enables product teams to deliver exceptional products faster. It helps to view the products in a product portfolio perspective rather than individual products.
ProdOps is more likely to be found in larger companies with product portfolios and they operate differently in every company.
Recommended read
https://www.svpg.com/product-ops-overview/
A product ops manager (or team) exists to support the product team by the following, here are some examples: -
Business data insights
Developing business processes to streamline product development.
Working closely with support and sales to improve the customer experience.
Customer data insights
Facilitating user interviews and other market research.
Analysing data to help product management make better-informed decisions.
Processes and tools
Overseeing quality assurance checks on new features.
Managing tools (for road mapping, prototyping, etc.) that the product team uses.
This includes making sure everyone has the right tools at their disposal, that they’re using data to make decisions, and that communication between different parts of the company is clear and efficient.
Challenges Faced by Product Managers and How ProdOps Can Help
Product Managers often find themselves bogged down in operational tasks that distract them from strategic thinking.
Challenge 1: Overburdened with Operational Tasks
ProdOps Solution: By handling operational responsibilities like process optimization, tool selection, and data management, ProdOps frees up product managers to focus on strategic initiatives and product vision.
Challenge 2: Difficulty in Prioritization
Balancing competing demands, limited resources, and evolving customer needs can make prioritization a daunting task.
ProdOps Solution: ProdOps can provide data-driven insights and analysis to support informed prioritization decisions. By optimizing processes and resource allocation, ProdOps helps product managers make more efficient use of their time and resources.
Challenge 3: Inefficient Cross-Functional Collaboration
Effective collaboration between product, engineering, design, and other teams is crucial for product success.
ProdOps Solution: ProdOps acts as a bridge between teams, fostering collaboration and alignment. By establishing clear communication channels and processes, ProdOps ensures everyone is working towards common goals.
Challenge 4: Lack of Data-Driven Decision Making
Making informed product decisions requires access to accurate and timely data.
ProdOps Solution: ProdOps is responsible for data management, analysis, and reporting. By providing actionable insights, ProdOps empowers product managers to make data-driven decisions and measure product performance effectively.
Challenge 5: Slow Time-to-Market
Bringing products to market quickly is essential in today's competitive landscape.
ProdOps Solution: By streamlining processes, optimizing workflows, and ensuring efficient resource allocation, ProdOps accelerates product development and time-to-market.
Challenge 6: Scaling Challenges
As products grow, so do the complexities of managing them.
ProdOps Solution: ProdOps is equipped to handle the challenges of scaling products. By implementing scalable processes and systems, ProdOps ensures that the product organization can adapt to growth and maintain efficiency.
By addressing these challenges, ProdOps becomes a strategic partner to product managers, enabling them to focus on what they do best: driving product vision and delivering exceptional customer experiences.
Recommended Read
https://www.launchnotes.com/blog/product-operations-vs-product-manager
https://www.productplan.com/blog/product-operations-melissa-perri/
Netflix: A Prime Example of Successful ProdOps Implementation
Netflix stands out as a prime example of a company that has effectively leveraged Product Operations (ProdOps) to drive product success and enhance team efficiency.
Key ProdOps Initiatives at Netflix:
Data-Driven Decision Making: Netflix is renowned for its data-centric approach. ProdOps plays a crucial role in collecting, analysing, and transforming data into actionable insights. This enables product teams to make informed decisions about content creation, user experience, and marketing strategies.
Continuous Delivery and Deployment (CD/CD): Netflix has built a robust CD/CD pipeline, allowing for rapid experimentation and innovation. ProdOps ensures the smooth functioning of this pipeline, enabling product teams to iterate quickly and respond to user feedback efficiently.
A/B Testing and Experimentation: ProdOps supports Netflix's experimentation culture by providing the necessary infrastructure and tools for A/B testing. This helps product teams make data-driven decisions about feature launches and optimizations.
Scalability and Reliability: As a global streaming giant, Netflix relies heavily on a scalable and reliable infrastructure. ProdOps plays a vital role in ensuring the platform can handle increasing traffic and user loads.
Factors to Consider When Choosing a Setup
Company size and structure: Smaller companies might lean towards embedded or hybrid models, while larger ones might benefit from a centralized approach.
Product complexity: Complex products might require embedded ProdOps for deeper understanding.
Organizational culture: A collaborative culture might favor matrix or hybrid models.
Team maturity: Established product teams might be ready for embedded ProdOps, while newer teams might benefit from a centralized approach.
Goals and objectives: Clear definition of ProdOps' role and responsibilities will influence the optimal structure.
Additional Considerations:
Shared Services: Consider outsourcing certain ProdOps functions like analytics or data management.
Co-creation: Involve product managers and other stakeholders in defining the ProdOps role and structure.
Continuous Evaluation: Regularly assess the effectiveness of the chosen setup and make adjustments as needed.
Accelerating revenue through Product Operations
The way we operate to build a product makes a difference between products that have an impact on revenue growth and those who don’t.
Product is directly tagged to revenue and an improvement on the way we build our product has a significant impact. This requires a systematic approach of improving the way we build the product with scalable and flexible practices to drive the impact.
ProdOps acts as a catalyst for revenue growth by streamlining operations, improving product quality, and supporting data-driven decision-making.
Additional reads
https://productschool.com/blog/job-search/product-ops-operations-manager
https://www.launchnotes.com/blog/the-ultimate-product-ops-job-description-a-comprehensive-guide
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