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From a toolkit of
recommendation algorithms
into a real business:
the Gravity R&D experience




13.09.2012.
The kick-start




2   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Facing with real needs

    What we had                                                  What clients wanted
    • rating prediction algorithms • recommendations that
    • coded in various languages     bring revenue
    • blending mechanism           • robustness
    • accuracy oriented            • low response time
                                   • easy integration
                                   • reporting




3   From a toolkit of recommendation algorithms into a real business   13.09.2012.
What we do?




          users


                                                                       content of service
                                                                           provider
                               recommender
4   From a toolkit of recommendation algorithms into a real business    13.09.2012.
Explicit vs implicit feedback

    No ratings but interactions




    sparse vs. dense matrix



    requires different learning

5   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Increase revenue: A/B tests

    against the original solution




    internally




6   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Robustness


                                                                                                  Management LAN

                                                                                    SNMP
                                                                                                                          Nagios Monitoring     HP OpenView
                                                                                                                             Aggregator


                                                              HTTP                         HTTP
    Platform OSS/BSS                                          / SQL                        / SQL
                                              IMPRESS                   IMPRESS
        SOAP                            Application Server #1     Application Server #2
                                                                                                       IMPRESS Frontend
                                                                                                         web server #1
          Backend LAN                                      Reco LAN                        HTTP                                 Load Balancer   HTTP(S)


                             Firewall                   SQL             SQL
        CSV over FTP
                                                                                                                                    TV Service LAN
                                                                                                      IMPRESS Frontend
                                                                                                        web server #2

                                                   Database #1        Database #2
Reporting Subsystem




                                                                                                                   End users


7    From a toolkit of recommendation algorithms into a real business                             13.09.2012.
Time requirements

    • Response time: few ms (max 200)
    • Training time: maximum few hours
      • regular retraining
      • incremental training
    • Newsletters:
      • nightly batch run




8   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Productization



              IMPRESS                                     RECO                       AD•APT
             for                                          for                            for
    IPTV, CATV and satellite                          e-commerce                 ad networks and ad
                                                                                  server providers


         Recommends                                Recommends                Recommends Personally
                                                 Personally Relevant              Relevant
      Personally Relevant
                                                products & services                 ads
        Linear TV, VOD,
     catch-up TV and more



                                Gravity personalization platform

9   From a toolkit of recommendation algorithms into a real business   13.09.2012.
The 5% question – Importance of UI

     Francisco Martin (Strands): „the algorithm is only 5% in the success of
     the recommender system”
     • placement
         below or above the fold
         scrolling
         easy to recognize
         floating in
     • title
         not misleading
         explanation like
     • widget
         carrousel
         static

10   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Recommendation scenario


                                                                                          Item2Item
                                                                                      recommendation
                                                                                        logic: the ad’s
                                                                                         profile will be
                                                                                       matched to the
                                                                                       profile model of
                                                                                         available ads




11   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Marketing channels




        Changing the order of two boxes: 25% CTR increase

12   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Cannibalization

     • Goal: increase user engagement
     • Measurements
       • average visit length
       • average page views
     • Effect of accurate recommendations:
       • use of listing page ↓
       • use of item page ↑
     • Overall page view: remains the same
     • Secondary measurements
       • Contacting
       • CTR increase




13   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Evolution: increased user engagement




     • not a cold start problem
     • parameter optimization and user engagement




14   From a toolkit of recommendation algorithms into a real business   13.09.2012.
KPIs – may change during testing




15   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Complete personalization: coupon-world

     • Newsletter (daily +
       occassionally)
     • Ranking all offers on the website
        • top1 item
        • category preferences



                                                                  • user metadata (gender, age, …)
                                                                  • user category preferences
                                                                    (seldom given)
                                                                  • item metadata
                                                                  • context

                                                                  • customer vs. vendor

16   From a toolkit of recommendation algorithms into a real business     13.09.2012.
Business rules – driving/overriding ranking




17   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Contexts




18   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Context at TV program recommendation

     • TV (EPG program & video-on-demand)
        explicit and implicit identification of the user in the household
        time-dependent recommendation




19   From a toolkit of recommendation algorithms into a real business   13.09.2012.
(offline)
     Some results (online)

                                  Improvement using season
                                  iTALS              iTALSx
                   Dataset Recall@20 MAP@20 Recall@20 MAP@20
                  Grocery     64,31% 137,96%     89,99% 199,82%
                  TV1         14,77% 43,80%      28,66% 85,33%
                  TV2         -7,94% 10,69%       7,77% 14,15%
                  LastFM      96,10% 116,54%     40,98% 254,62%

                                    Improvement using Seq
                                  iTALS               iTALSx
                   Dataset Recall@20 MAP@20 Recall@20 MAP@20
                  Grocery     84,48% 104,13% 108,83% 122,24%
                  TV1         36,15% 55,07%       26,14% 29,93%

20   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Anecdotes

     • Item2item recommendations – bookstore


     • Placebo effect


     • buyer vs. seller


21   From a toolkit of recommendation algorithms into a real business   13.09.2012.
Conclusion

     • Offline and online testing


     • From simple to sophisticated


     • Many more potential fields of application



22   From a toolkit of recommendation algorithms into a real business   13.09.2012.

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From a toolkit of recommendation algorithms into a real business: the Gravity R&D experience (talk given at Recsys 2012)

  • 1. From a toolkit of recommendation algorithms into a real business: the Gravity R&D experience 13.09.2012.
  • 2. The kick-start 2 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 3. Facing with real needs What we had What clients wanted • rating prediction algorithms • recommendations that • coded in various languages bring revenue • blending mechanism • robustness • accuracy oriented • low response time • easy integration • reporting 3 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 4. What we do? users content of service provider recommender 4 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 5. Explicit vs implicit feedback No ratings but interactions sparse vs. dense matrix requires different learning 5 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 6. Increase revenue: A/B tests against the original solution internally 6 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 7. Robustness Management LAN SNMP Nagios Monitoring HP OpenView Aggregator HTTP HTTP Platform OSS/BSS / SQL / SQL IMPRESS IMPRESS SOAP Application Server #1 Application Server #2 IMPRESS Frontend web server #1 Backend LAN Reco LAN HTTP Load Balancer HTTP(S) Firewall SQL SQL CSV over FTP TV Service LAN IMPRESS Frontend web server #2 Database #1 Database #2 Reporting Subsystem End users 7 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 8. Time requirements • Response time: few ms (max 200) • Training time: maximum few hours • regular retraining • incremental training • Newsletters: • nightly batch run 8 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 9. Productization IMPRESS RECO AD•APT for for for IPTV, CATV and satellite e-commerce ad networks and ad server providers Recommends Recommends Recommends Personally Personally Relevant Relevant Personally Relevant products & services ads Linear TV, VOD, catch-up TV and more Gravity personalization platform 9 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 10. The 5% question – Importance of UI Francisco Martin (Strands): „the algorithm is only 5% in the success of the recommender system” • placement  below or above the fold  scrolling  easy to recognize  floating in • title  not misleading  explanation like • widget  carrousel  static 10 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 11. Recommendation scenario Item2Item recommendation logic: the ad’s profile will be matched to the profile model of available ads 11 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 12. Marketing channels Changing the order of two boxes: 25% CTR increase 12 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 13. Cannibalization • Goal: increase user engagement • Measurements • average visit length • average page views • Effect of accurate recommendations: • use of listing page ↓ • use of item page ↑ • Overall page view: remains the same • Secondary measurements • Contacting • CTR increase 13 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 14. Evolution: increased user engagement • not a cold start problem • parameter optimization and user engagement 14 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 15. KPIs – may change during testing 15 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 16. Complete personalization: coupon-world • Newsletter (daily + occassionally) • Ranking all offers on the website • top1 item • category preferences • user metadata (gender, age, …) • user category preferences (seldom given) • item metadata • context • customer vs. vendor 16 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 17. Business rules – driving/overriding ranking 17 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 18. Contexts 18 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 19. Context at TV program recommendation • TV (EPG program & video-on-demand)  explicit and implicit identification of the user in the household  time-dependent recommendation 19 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 20. (offline) Some results (online) Improvement using season iTALS iTALSx Dataset Recall@20 MAP@20 Recall@20 MAP@20 Grocery 64,31% 137,96% 89,99% 199,82% TV1 14,77% 43,80% 28,66% 85,33% TV2 -7,94% 10,69% 7,77% 14,15% LastFM 96,10% 116,54% 40,98% 254,62% Improvement using Seq iTALS iTALSx Dataset Recall@20 MAP@20 Recall@20 MAP@20 Grocery 84,48% 104,13% 108,83% 122,24% TV1 36,15% 55,07% 26,14% 29,93% 20 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 21. Anecdotes • Item2item recommendations – bookstore • Placebo effect • buyer vs. seller 21 From a toolkit of recommendation algorithms into a real business 13.09.2012.
  • 22. Conclusion • Offline and online testing • From simple to sophisticated • Many more potential fields of application 22 From a toolkit of recommendation algorithms into a real business 13.09.2012.