Advertising to Increase Revenue

Yi Huang

Director of Engineering at Facebook



People often find themselves at the helm of a new start-up, pondering the age-old question of how they will increase revenue for their business. There are many ways to go about doing this. Advertising is one viable option but often fails without the website bolstering a dramatically large user base and long engagement statistics. 

Actions taken

If you are going to start thinking about advertising as a suitable option for your business, you must develop the following areas. 

  • Measure the number of weekly active users. Know about them, their impact, and how much time they spend using the website. 
  • Focus heavily on direct response and deeply connect with what consumers really want to do at that moment. 
  • Increase your conversion rate to at least tens of millions. 
  • Focus on traction more than monetization, especially as a new startup. 
  • Prove to investors that there is a future amount of opportunity of people facing a similar problem and that you are directly targeting their pinpoint. 

Lessons learned

  • If you have a large user base and good impressions, then brand advertising and direct response advertising would work best. 
  • Studying your users will provide you with the key metrics necessary to tell you what type of advertising would be most useful for you. 
  • Business data should truly fulfill user demand. 
  • If you take the conversion rate into consideration when showing direct response ads, it will still just be a few percent at maximum. To truly see the value of your advertising, you need to have a significantly large user base and bigger conversion numbers to attract businesses to want to advertise on your page. 
  • Advertising at a certain point is going to hurt your engagement. You need to find a balance between traction and monetization.

Be notified about next articles from Yi Huang

Yi Huang

Director of Engineering at Facebook

Performance Metrics

Connect and Learn with the Best Eng Leaders

We will send you a weekly newsletter with new mentors, circles, peer groups, content, webinars,bounties and free events.


HomeCircles1-on-1 MentorshipBounties

© 2024 Plato. All rights reserved

LoginSign up