Personalized Delivery of Three Ad Categories
Scenario
You operate a consumer feed with a single ad opportunity per request and three possible ad categories (A, B, C). You need to decide, for each impression, which category to show to maximize business value while maintaining user experience.
Task
Design an approach to personalize the delivery of the three ad categories. Specifically:
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State clear objectives and constraints (e.g., revenue, ROI, user experience).
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Propose how to decide which category to show at each impression.
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Describe how you would measure performance offline and online.
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Explain how you would optimize for revenue/ROI, including exploration vs. exploitation and how to estimate causal lift (incrementality).
Assume you can log propensities and outcomes and you can run controlled experiments.