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Evaluate Key Metrics for Capital One Ad Campaign

Capital OneData Scientist · Technical Screen
MediumData ScientistTechnical ScreenAnalytics & Experimentation

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This interview question evaluates metric design, causal reasoning, experiment setup, diagnostics, SQL/statistical checks, and recommendations in a realistic interview setting. A strong answer for Evaluate Key Metrics for Capital One Ad Campaign states assumptions, handles edge cases, explains trade-offs, and shows how to validate the result clearly.

Scenario

Capital One launches the Quicksilver credit-card marketing campaign on a streaming platform that can run either a 30-second unskippable ad or a skippable ad.

Question

Before placing any ads, what key factors (metrics, customer segments, risks) would you evaluate for this campaign? Using 100 000 viewers, a fixed cost of $50 000, $0.10 cost per view, $500 revenue per approved account, a 1.4 % click-to-apply conversion, and a 50 % approval rate, calculate the campaign’s profit or loss. If we switch to a skippable ad that costs $0.30 only when watched and 80 % of viewers skip, what minimum conversion rate keeps profit equal to the first plan? Suppose a third option is to run no campaign at all. How would you decide which of the three options to choose? With extra time, what additional data or analyses would you request to strengthen your recommendation?

Hints

Lay out revenue-cost equation, compute profit, then set profit_scenario2 = profit_scenario1 to solve for required conversion; discuss CAC, LTV, incremental lift, brand impact, uncertainty.