6,663 research outputs found
Lift-Based Bidding in Ad Selection
Real-time bidding (RTB) has become one of the largest online advertising
markets in the world. Today the bid price per ad impression is typically
decided by the expected value of how it can lead to a desired action event
(e.g., registering an account or placing a purchase order) to the advertiser.
However, this industry standard approach to decide the bid price does not
consider the actual effect of the ad shown to the user, which should be
measured based on the performance lift among users who have been or have not
been exposed to a certain treatment of ads. In this paper, we propose a new
bidding strategy and prove that if the bid price is decided based on the
performance lift rather than absolute performance value, advertisers can
actually gain more action events. We describe the modeling methodology to
predict the performance lift and demonstrate the actual performance gain
through blind A/B test with real ad campaigns in an industry-leading
Demand-Side Platform (DSP). We also discuss the relationship between
attribution models and bidding strategies. We prove that, to move the DSPs to
bid based on performance lift, they should be rewarded according to the
relative performance lift they contribute.Comment: AAAI 201
Persistence Modeling for Assessing Marketing Strategy Performance
The question of long-run market response lies at the heart of any marketing strategy that tries to create a sustainable competitive advantage for the firm or brand. A key challenge, however, is that only short-run results of marketing actions are readily observable. Persistence modeling addresses the problem of long-run market-response quantification by combining into one measure of “net long-run impact†the chain reaction of consumer response, firm feedback and competitor response that emerges following the initial marketing action. In this paper, we (i) summarize recent marketing-strategic insights that have been accumulated through various persistence modeling applications, (ii) provide an introduction to some of the most frequently used persistence modeling techniques, and (iii) identify some other strategic research questions where persistence modeling may prove to be particularly valuable.long-run effectiveness;marketing strategy;time-series analysis
Persistence models and marketing strategy.
Marketing; Persistence; Models; Model; Strategy;
Pseudo-social network targeting from consumer transaction data
This design science paper presents a method for targeting consumers
based on a 'pseudo-social network' (PSN): consumers are linked if they
transfer money to the same entities. A marketer can target those
individuals that are strongly connected to key individuals. We present
the PSN design and a large-scale empirical study using data from a major
bank. For two different product offerings, consumers that are close to
existing customers in the PSN have significantly higher take rates than
the 'most likely' candidates identified by state-of-the-art
socio-demographic (SD) predictive modeling. Interestingly, the PSN
targeting only does better for the closest neighbors. However, the
different models capture different information: combining the two does
significantly better than either alone. The results demonstrate that
social targeting can be applied broadly, to settings where the network
among consumers is unlikely to be a true social network, but nonetheless
captures inherent similarity.Faculty of Applied Economics, University of Antwerp, Belgium; Department
of Information, Operations and Management Sciences, Stern School of
Business, New York Universit
Analyzing and Modeling Special Offer Campaigns in Location-based Social Networks
The proliferation of mobile handheld devices in combination with the
technological advancements in mobile computing has led to a number of
innovative services that make use of the location information available on such
devices. Traditional yellow pages websites have now moved to mobile platforms,
giving the opportunity to local businesses and potential, near-by, customers to
connect. These platforms can offer an affordable advertisement channel to local
businesses. One of the mechanisms offered by location-based social networks
(LBSNs) allows businesses to provide special offers to their customers that
connect through the platform. We collect a large time-series dataset from
approximately 14 million venues on Foursquare and analyze the performance of
such campaigns using randomization techniques and (non-parametric) hypothesis
testing with statistical bootstrapping. Our main finding indicates that this
type of promotions are not as effective as anecdote success stories might
suggest. Finally, we design classifiers by extracting three different types of
features that are able to provide an educated decision on whether a special
offer campaign for a local business will succeed or not both in short and long
term.Comment: in The 9th International AAAI Conference on Web and Social Media
(ICWSM 2015
Towards More Robust Uplift Modeling for Churn Prevention in the Presence of Negatively Correlated Estimation Errors
The subscription economy is rapidly growing, boosting the importance of churn prevention. However, current true lift models often lead to poor outcomes in churn prevention campaigns. A vital problem seems to lie in instable estimations due to dynamic surrounding parameters such as price increases, product migrations, tariff launches of a competitor, or other events with uncertain consequences. The crucial challenge therefore is to make churn prevention measures more reliable in the presence of game-changing events. In this paper, we assume such events to be spatially finite in feature space, an assumption which leads to particularly bad churn prevention results if the selected customers lump in an affected region of the feature space. We then introduce novel methods which trade off uplift for reduced similarity in feature space when selecting customers for churn prevention campaigns and show that these methods can improve the robustness of uplift modeling
Inefficiencies in Digital Advertising Markets
Digital advertising markets are growing and attracting increased scrutiny. This article explores four market inefficiencies that remain poorly understood: ad effect measurement, frictions between and within advertising channel members, ad blocking, and ad fraud. Although these topics are not unique to digital advertising, each manifests in unique ways in markets for digital ads. The authors identify relevant findings in the academic literature, recent developments in practice, and promising topics for future research
Ensembles of probability estimation trees for customer churn prediction
Customer churn prediction is one of the most, important elements tents of a company's Customer Relationship Management, (CRM) strategy In tins study, two strategies are investigated to increase the lift. performance of ensemble classification models, i.e (1) using probability estimation trees (PETs) instead of standard decision trees as base classifiers; and (n) implementing alternative fusion rules based on lift weights lot the combination of ensemble member's outputs Experiments ale conducted lot font popular ensemble strategics on five real-life chin n data sets In general, the results demonstrate how lift performance can be substantially improved by using alternative base classifiers and fusion tides However: the effect vanes lot the (Idol cut ensemble strategies lit particular, the results indicate an increase of lift performance of (1) Bagging by implementing C4 4 base classifiets. (n) the Random Subspace Method (RSM) by using lift-weighted fusion rules, and (in) AdaBoost, by implementing both
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