Context
After launching an AI chat feature, the company wants to show ads inside the chat experience (you are interviewing for an Ads/Monetization data science role). Advertisers have fixed budgets, so shifting impressions to chat may reallocate spend from other placements.
Task
Design an experiment to measure the incremental impact of introducing chat ads.
Requirements
-
Define the main
incrementality question
(platform revenue vs advertiser outcomes vs user experience).
-
Propose an A/B (or alternative) design that addresses:
-
budget constraints / budget reallocation (“budget split”)
-
auction dynamics and supply shift
-
user-level effects and advertiser-level effects
-
Specify
primary, diagnostic, and guardrail metrics
.
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Describe how you would interpret results under different scenarios (e.g., revenue up but ROAS down).