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Design experiment for ads in chat with budgets

Last updated: Mar 29, 2026

Quick Overview

This question evaluates a data scientist's skills in experimental design, causal inference, metrics selection, and handling allocation constraints for ad monetization incrementality.

  • easy
  • Reddit
  • Analytics & Experimentation
  • Data Scientist

Design experiment for ads in chat with budgets

Company: Reddit

Role: Data Scientist

Category: Analytics & Experimentation

Difficulty: easy

Interview Round: Onsite

## 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 1. Define the main **incrementality question** (platform revenue vs advertiser outcomes vs user experience). 2. 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 3. Specify **primary, diagnostic, and guardrail metrics**. 4. Describe how you would interpret results under different scenarios (e.g., revenue up but ROAS down).

Quick Answer: This question evaluates a data scientist's skills in experimental design, causal inference, metrics selection, and handling allocation constraints for ad monetization incrementality.

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Reddit logo
Reddit
Dec 11, 2025, 12:00 AM
Data Scientist
Onsite
Analytics & Experimentation
4
0
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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

  1. Define the main incrementality question (platform revenue vs advertiser outcomes vs user experience).
  2. 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
  3. Specify primary, diagnostic, and guardrail metrics .
  4. Describe how you would interpret results under different scenarios (e.g., revenue up but ROAS down).

Solution

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