ADVERTISING CANNIBALIZATION MANAGEMENT
A system and method for advertising cannibalization management are provided. In example embodiments, historical data comprising advertisement revenue, advertisement parameters, and a cannibalization metric are accessed. The cannibalization metric is indicative of sales loss associated with an advertisement presentation. A value for at least one of the advertisement parameters that, when used, causes a desired advertisement revenue with respect to a bounded cannibalization metric is determined by analyzing the historical data. An advertisement is presented, in real time, on a user interface of a client device using the determined value.
1 . A system comprising:
a data module to access historical data that comprises advertisement revenue, advertisement parameters, and a cannibalization metric that is indicative of sales loss associated with an advertisement presentation;
an analysis module, implemented by at least one hardware processor of a machine, to determine a value for at least one of the advertisement parameters by an analysis of the historical data, use of the determined value causes a desired advertisement revenue with respect to a bounded cannibalization metric; and
a presentation module to cause presentation, in real time, of an advertisement on a user interface of a client device using the determined value.
2 . The system of claim 1 , wherein the analysis module is further to:
identify a cannibalization covariate from among candidate covariates that include the advertisement parameters;
generate a covariate model that models the cannibalization covariate with respect to the advertisement parameters;
generate a cannibalization model that models the cannibalization metric with respect to the cannibalization covariate;
generate a revenue model that models the advertisement revenue with respect to the advertisement parameters; and
determine the value for at least one of the advertisement parameters using the revenue model in conjunction with the cannibalization model and the covariate model.
3 . The system of claim 1 , wherein the cannibalization metric comprises at least one of a purchase per user per week metric (PPW) and a gross revenue per user per week metric (GPW).
4 . The system of claim 1 , wherein the advertisement parameters include at least one of an advertisement placement, impressions, clicks, an advertiser, and an advertisement type.
5 . A method comprising:
accessing historical data comprising advertisement revenue, advertisement parameters, and a cannibalization metric that is indicative of sales loss associated with an advertisement presentation;
determining a value for at least one of the advertisement parameters by analyzing the historical data, use of the determined value causes a desired advertisement revenue with respect to a bounded cannibalization metric; and
causing presentation, in real time, of an advertisement on a user interface of a client device using the determined value.
6 . The method of claim 5 , wherein the analyzing the historical data further comprises:
identifying a cannibalization covariate from among candidate covariates that include the advertisement parameters;
generating a covariate model that models the cannibalization covariate with respect to the advertisement parameters;
generating a cannibalization model that models the cannibalization metric with respect to the cannibalization covariate;
generating a revenue model that models the advertisement revenue with respect to the advertisement parameters; and
determining the value for at least one of the advertisement parameters using the revenue model in conjunction with the cannibalization model and the covariate model.
7 . The method of claim 6 , wherein the identifying the cannibalization covariate further comprises:
measuring a cannibalization value by comparing cannibalization of a control group of users shown advertisements and a treatment group of users not shown advertisements; and
identifying the cannibalization covariate from among the candidate covariates according to a correlation between respective candidate covariates and the measured cannibalization value, the cannibalization covariate being a highest correlated covariate among the candidate covariates.
8 . The method of claim 7 , wherein the candidate covariates include at least one of clicks, impressions, and page views.
9 . The method of claim 5 , wherein the cannibalization metric comprises at least one of a purchase per user per week metric (PPW) and a gross revenue per user per week metric (GPW).
10 . The method of claim 5 , wherein the advertisement parameters include at least one of an advertisement placement, impressions, clicks, an advertiser, and an advertisement type.
11 . The method of claim 5 , further comprising:
determining a lower limit for the bounded cannibalization metric according to a minimum advertisement revenue specified by an operator; and
determining an upper limit for the bounded cannibalization metric according to a maximum cannibalization cost specified by the operator.
12 . The method of claim 5 , further comprising:
accessing current data comprising the advertisement revenue, the advertisement parameters, and the cannibalization metric for a time period of a duration;
determining a change amount for at least one of the advertisement parameters by analyzing the historical data in conjunction with the current data; and
causing presentation, in real time, of the advertisement on the user interface of the client device using the determined change amount for another time period of the duration.
13 . A machine-readable medium having no transitory signals and storing instructions that, when executed by at least one processor of a machine, cause the machine to perform operations comprising:
accessing historical data comprising advertisement revenue, advertisement parameters, and a cannibalization metric that is indicative of sales loss associated with an advertisement presentation;
determining a value for at least one of the advertisement parameters by analyzing the historical data, use of the determined value causes a desired advertisement revenue with respect to a bounded cannibalization metric; and
causing presentation, in real time, of an advertisement on a user interface of a client device using the determined value.
14 . The machine-readable medium of claim 13 , wherein the analyzing the historical data further comprises:
identifying a cannibalization covariate from among the candidate covariates that include the advertisement parameters;
generating a covariate model that models the cannibalization covariate with respect to the advertisement parameters;
generating a cannibalization model that models the cannibalization metric with respect to the cannibalization covariate;
generating a revenue model that models the advertisement revenue with respect to the advertisement parameters; and
determining the value for at least one of the advertisement parameters using the revenue model in conjunction with the cannibalization model and the covariate model.
15 . The machine-readable medium of claim 14 , wherein the operations further comprise the identifying the cannibalization covariate by:
measuring a cannibalization value by comparing cannibalization of a control group of users shown advertisements and a treatment group of users not shown advertisements; and
identifying the cannibalization covariate from among the candidate covariates according to a correlation between respective candidate covariates and the measured cannibalization value, the cannibalization covariate being a highest correlated covariate among the candidate covariates.
16 . The machine-readable medium of claim 15 , wherein the candidate covariates include at least one of clicks, impressions, and page views.
17 . The machine-readable medium of claim 13 , wherein the cannibalization metric comprises at least one of a purchase per user per week metric (PPW) and a gross revenue per user per week metric (GPW).
18 . The machine-readable medium of claim 13 , wherein the advertisement parameters include at least one of an advertisement placement, impressions, clicks, an advertiser, and an advertisement type.
19 . The machine-readable medium of claim 13 , wherein the operations further comprise:
determining a lower limit for the bounded cannibalization metric according to a minimum advertisement revenue specified by an operator; and
determining an upper limit for the bounded cannibalization metric according to a maximum cannibalization cost specified by the operator.
20 . The machine-readable medium of claim 13 , further comprising:
accessing current data comprising the advertisement revenue, the advertisement parameters, and the cannibalization metric for a time period of a duration;
determining a change amount for at least one of the advertisement parameters by analyzing the historical data in conjunction with the current data; and
causing presentation, in real time, of the advertisement on the user interface of the client device using the determined change amount for another time period of the duration.