Tag Archives: digital ads

This post overviews code for testing multiple variants using Bayesian statistics. It is especially useful when there is a defined action that can be classified as a success (i.e. a click or conversion) and when we have complete information about the number of trials (i.e. impressions). Full code can be found on GitHub. This code relies heavily on simulation produced by sampling beta distributions given parameters for trials and successes. No additional packages are necessary outside of base R. First we define helper functions that act as wrappers for the rbeta and qbeta functions in base R. RBetaWrapper will be used for sampling and QBetaWrapper will be used for calculating credibility intervals. Our MVTest function accepts number of simulated draws, a trial vector, a success vector, a vector of quantiles to be used in calculating credibility intervals, and an integer specifying how many digits credibility intervals should be rounded. The…

Read more

This post discusses how to use polynomial regression for digital advertising data. Polynomial regression can help us better understand the relationship between spend and impressions (or spend and clicks). This method can be particularly useful when looking at daily data with variability in daily spends. Models can be used to analyze, estimate, and benchmark performance of future campaigns. The full code can be found on GitHub. The code used here uses a second order polynomial function to allow for diminishing marginal returns. For impressions the function takes the form of: Or in the case of clicks: To run this code begin by importing the ggplot2, scales, and rio packages. First we define a function to fit a second order polynomial regression given two variables. This function also creates a ggplot object that maps a scatter plot of actual observations along with a regression line of predicted values. Next we define…

Read more

2/2