Becoming Data-driven - Machine Learning @ XING Marketing Solutions

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Transcript of Becoming Data-driven - Machine Learning @ XING Marketing Solutions

  1. 1. Becoming Data-driven ML @ XING Marketing Solutions Big Data World Frankfurt November 29th, 2017 Dr. Stefan Khn
  2. 2. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 2
  3. 3. werben.xing.com Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 3 This talk is about
  4. 4. werben.xing.com Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 4 Create ads @ www.xing.com/xas/ Native Advertising Different placements Multiple Ad Types Events Groups Jobs User BusinessPages Websites Video
  5. 5. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 5 AdManager From Heuristics to Algorithms
  6. 6. Second Bid Auction Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 6 We focus on Relevance Predict expected Clickrate = eCTR Revenue Predict expected Revenue = eRPI Features Targeting Ad-related data User-related data Time Channel
  7. 7. Heuristics Nave Bayes (not quite) Why? Easy to implement No theoretic background needed No additional toolstack Can be implemented by Software Engineers Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 7 Why not? Hard to optimize No theoretic guarantuees Toolstack limited w.r.t advanced methods Cannot be re-used by Data Scientist Imprecise predictions lead to suboptimal business decisions Visible costs are low Invisible costs are higher
  8. 8. Algorithms Collaborative Filtering Why not? Significant implementation effort Complex theory New and unknown toolstack requires training and learning time Cannot be implemented by Software Engineers alone Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 8 Why? Allows for ongoing optimization Theoretic guarantuees are a prerequisite for reasoning, proper evaluation and testing Modern tooling enables learning from much more data Additional Data Science and Engineering skills enhance the team capabilities in many ways Short term savings Long term benefits
  9. 9. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 9 Advanced Delivery Pipeline Separation of Concerns
  10. 10. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 10 Collaborative Filtering for Recommendations Predict approximate scores for empty spots based on similarities between users and items
  11. 11. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 11 Matrix Factorization
  12. 12. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 12 Short term savings versus long term benefits 0 20 40 60 80 100 120 140 Revenue per Impression [RPI] Before ADP Start of ADP ADP today +11% +30% Development time 4 month (small team) In production for 4 months now and more to come
  13. 13. Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 13 AdManager More to come
  14. 14. Algorithms The Next Level More Data = New Features Natural Language Processing - Matching user interests and ad descriptions Social Network Analysis - Recommendations based on interactions in the users network Interaction with other content Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 14 New Methods = Better Predictions Multiple methods in parallel (Multi-Armed Bandit) Multiple theoretical approaches (LogReg, Tree- based) Ensembles New data dimensions require Big Data solution New algorithmic dimensions require powerful distributed computing system
  15. 15. Algorithms The Next Level Dr. Stefan Khn - Becoming Data-driven: Machine Learning @ XING Marketing Solutions 15 New data dimensions require Big Data solution New algorithmic dimensions require powerful distributed computing system We are already prepared for that!
  16. 16. Thank you for your attention. www.xing.com Dr. Stefan Khn Senior Data Scientist XING Markting Solutions GmbH [email protected] www.xing.com/profile/Stefan_Kuehn46