Beyond Basic A/B testing: Improving Statistical Efficiency for Business Growth

The standard A/B testing approaches are mostly based on t-test in large scale industry applications. These standard approaches however suffers from low statistical power in business settings, due to nature of small sample-size or non-Gaussian distribution or return-on-investment (ROI) consideration. In this paper, we propose several approaches to addresses these challenges: (i) regression adjustment, generalized estimating equation, Man-Whitney U and Zero-Trimmed U that addresses each of these issues separately, and (ii) a novel doubly robust generalized U that handles ROI consideration, distribution robustness and small samples in one framework. We provide theoretical results on asymptotic normality and efficiency bounds, together with insights on the efficiency gain from theoretical analysis. We further conduct comprehensive simulation studies and apply the methods to multiple real A/B tests.

Neural Optimization with Adaptive Heuristics for Intelligent Marketing System

Computational marketing has become increasingly important in today's digital world, facing challenges such as massive heterogeneous data, multi-channel customer journeys, and limited marketing budgets. In this paper, we propose a general framework for marketing AI systems, the Neural Optimization with Adaptive Heuristics (NOAH) framework. NOAH is the first general framework for marketing optimization that considers both to-business (2B) and to-consumer (2C) products, as well as both owned and paid channels. We describe key modules of the NOAH framework, including prediction, optimization, and adaptive heuristics, providing examples for bidding and content optimization. We then detail the successful application of NOAH to LinkedIn's email marketing system, showcasing significant wins over the legacy ranking system. Additionally, we share details and insights that are broadly useful, particularly on: (i) addressing delayed feedback with lifetime value, (ii) performing large-scale linear programming with randomization, (iii) improving retrieval with audience expansion, (iv) reducing signal dilution in targeting tests, and (v) handling zero-inflated heavy-tail metrics in statistical testing.