I have a site where there will be a list of offers that the user can fill out for virtual currency. What's a decent algorithm to decide what order to arrange them by?
What's important:
New offers move up so more people see them in order to get some
metrics on them
Highest EPC offers are on top (best money makers, highest converting)
The metrics I have:
- Tags (if the user likes movies, the offers tagged with movies should move up)
- Reported EPC - EPC of the offer according to the affiliate network
- Network EPC - EPC of the offer across all of our sites
- Site EPC - EPC of the offer on this site
- Source EPC - EPC of the offer from a certain source (there can be multiple per user)
- Payout - How much the offer pays per conversion (lead)
- Clicks - Clicks network-wide, site-wide, and from a certain source
Is there any recommended algorithm for this kind of problem? I was thinking some sort confidence algorithm (like the Wilson sorting algorithm) but I haven't a clue how to implement that with the metrics I have. Any ideas?
You are basically trying to build a ad recommender system. This should be a good starting point: http://pages.cs.wisc.edu/~beechung/icml11-tutorial/ . Take a look at the netflix challenge (movie recommender), KDD cup 2011 challenge (Music recommender) etc
Related
Foster's metholodogy has 4 steps to designing parallel algorithms
Partitioning
Communication
Agglomeration
Mapping
Many examples I'm coming across take a very mathematical approach. While I can understand that math is essential, I was wondering if there was an easier way of explanation the PCAM method to someone who isn't computer science oriented?
Let's suppose you are going to the supermarket for some grocery shopping and you have a partner with you, in that case your computer has two processors or two threads (you and your partner).
First we partition the problem into tasks:
Create a shopping list
Drive to the supermarket
Get all the items in the list
Pay for the items
Drive back home
Store all the items
Park the car (let's assume the garage is far away from the house)
Then you define the communication
To create the shopping list each processor will check the house for what is missing and will get together from time to time to consolidate the list
In the supermarket each processor will go get some goods and will get together at the cart to choose another item from the list so that no processor go looking for the same item at the same time
While one processor is storing the items the other goes park the car, when the processor is back it may help store the items that are still left
Agglomeration of tasks (Unfortunately I already described them agglomerated)
Mapping
You check some items, your partner the others
Any processor drives to the supermarket (but the other goes together)
You go get some item and your partner gets a different item until the list is complete
Any processor pays for the goods (hopefully, your partner)
Any processor drives back to leave a processor at home storing the items
The driver processor goes park the car
The non-driver processor starts storing the goods
The driver processor gets back and check what goods are still left and helps store the goods
This is completely non-mathematical and was the best example that I could come up with, any non-computer science person that is willing to understand the method may grasp the idea (I hope).
Cheers!
I'm trying to learn more about trust metrics (including related algorithms) and how user voting, ranking and rating systems can be wired to stiffle abuse. I've read abstract articles and papers describing trust metrics but haven't seen any actual implementations. My goal is to create a system that allows users to vote on other users and the content of other users and with those votes and related meta-data, determine if those votes can be applied to a users level or popularity.
Have you used or seen some sort of trust system within a social graph? How did it work and what were its areas of strength and weaknesses?
I'm reading the book Programming Collective Intelligence.
From the description:
Want to tap the power behind search rankings, product recommendations, social bookmarking, and online matchmaking? This fascinating book demonstrates how you can build Web 2.0 applications to mine the enormous amount of data created by people on the Internet.
The algorithms in the book are implemented in python.
I've just started reading the book so I don't know if it can help solve your problem, but it's worth taking a look.
What technology goes in behind the screens of Amazon recommendation technology? I believe that Amazon recommendation is currently the best in the market, but how do they provide us with such relevant recommendations?
Recently, we have been involved with similar recommendation kind of project, but would surely like to know about the in and outs of the Amazon recommendation technology from a technical standpoint.
Any inputs would be highly appreciated.
Update:
This patent explains how personalized recommendations are done but it is not very technical, and so it would be really nice if some insights could be provided.
From the comments of Dave, Affinity Analysis forms the basis for such kind of Recommendation Engines. Also here are some good reads on the Topic
Demystifying Market Basket Analysis
Market Basket Analysis
Affinity Analysis
Suggested Reading:
Data Mining: Concepts and Technique
It is both an art and a science. Typical fields of study revolve around market basket analysis (also called affinity analysis) which is a subset of the field of data mining. Typical components in such a system include identification of primary driver items and the identification of affinity items (accessory upsell, cross sell).
Keep in mind the data sources they have to mine...
Purchased shopping carts = real money from real people spent on real items = powerful data and a lot of it.
Items added to carts but abandoned.
Pricing experiments online (A/B testing, etc.) where they offer the same products at different prices and see the results
Packaging experiments (A/B testing, etc.) where they offer different products in different "bundles" or discount various pairings of items
Wishlists - what's on them specifically for you - and in aggregate it can be treated similarly to another stream of basket analysis data
Referral sites (identification of where you came in from can hint other items of interest)
Dwell times (how long before you click back and pick a different item)
Ratings by you or those in your social network/buying circles - if you rate things you like you get more of what you like and if you confirm with the "i already own it" button they create a very complete profile of you
Demographic information (your shipping address, etc.) - they know what is popular in your general area for your kids, yourself, your spouse, etc.
user segmentation = did you buy 3 books in separate months for a toddler? likely have a kid or more.. etc.
Direct marketing click through data - did you get an email from them and click through? They know which email it was and what you clicked through on and whether you bought it as a result.
Click paths in session - what did you view regardless of whether it went in your cart
Number of times viewed an item before final purchase
If you're dealing with a brick and mortar store they might have your physical purchase history to go off of as well (i.e. toys r us or something that is online and also a physical store)
etc. etc. etc.
Luckily people behave similarly in aggregate so the more they know about the buying population at large the better they know what will and won't sell and with every transaction and every rating/wishlist add/browse they know how to more personally tailor recommendations. Keep in mind this is likely only a small sample of the full set of influences of what ends up in recommendations, etc.
Now I have no inside knowledge of how Amazon does business (never worked there) and all I'm doing is talking about classical approaches to the problem of online commerce - I used to be the PM who worked on data mining and analytics for the Microsoft product called Commerce Server. We shipped in Commerce Server the tools that allowed people to build sites with similar capabilities.... but the bigger the sales volume the better the data the better the model - and Amazon is BIG. I can only imagine how fun it is to play with models with that much data in a commerce driven site. Now many of those algorithms (like the predictor that started out in commerce server) have moved on to live directly within Microsoft SQL.
The four big take-a-ways you should have are:
Amazon (or any retailer) is looking at aggregate data for tons of transactions and tons of people... this allows them to even recommend pretty well for anonymous users on their site.
Amazon (or any sophisticated retailer) is keeping track of behavior and purchases of anyone that is logged in and using that to further refine on top of the mass aggregate data.
Often there is a means of over riding the accumulated data and taking "editorial" control of suggestions for product managers of specific lines (like some person who owns the 'digital cameras' vertical or the 'romance novels' vertical or similar) where they truly are experts
There are often promotional deals (i.e. sony or panasonic or nikon or canon or sprint or verizon pays additional money to the retailer, or gives a better discount at larger quantities or other things in those lines) that will cause certain "suggestions" to rise to the top more often than others - there is always some reasonable business logic and business reason behind this targeted at making more on each transaction or reducing wholesale costs, etc.
In terms of actual implementation? Just about all large online systems boil down to some set of pipelines (or a filter pattern implementation or a workflow, etc. you call it what you will) that allow for a context to be evaluated by a series of modules that apply some form of business logic.
Typically a different pipeline would be associated with each separate task on the page - you might have one that does recommended "packages/upsells" (i.e. buy this with the item you're looking at) and one that does "alternatives" (i.e. buy this instead of the thing you're looking at) and another that pulls items most closely related from your wish list (by product category or similar).
The results of these pipelines are able to be placed on various parts of the page (above the scroll bar, below the scroll, on the left, on the right, different fonts, different size images, etc.) and tested to see which perform best. Since you're using nice easy to plug and play modules that define the business logic for these pipelines you end up with the moral equivalent of lego blocks that make it easy to pick and choose from the business logic you want applied when you build another pipeline which allows faster innovation, more experimentation, and in the end higher profits.
Did that help at all? Hope that give you a little bit of insight how this works in general for just about any ecommerce site - not just Amazon. Amazon (from talking to friends that have worked there) is very data driven and continually measures the effectiveness of it's user experience and the pricing, promotion, packaging, etc. - they are a very sophisticated retailer online and are likely at the leading edge of a lot of the algorithms they use to optimize profit - and those are likely proprietary secrets (you know like the formula to KFC's secret spices) and guaarded as such.
This isn't directly related to Amazon's recommendation system, but it might be helpful to study the methods used by people who competed in the Netflix Prize, a contest to develop a better recommendation system using Netflix user data. A lot of good information exists in their community about data mining techniques in general.
The team that won used a blend of the recommendations generated by a lot of different models/techniques. I know that some of the main methods used were principal component analysis, nearest neighbor methods, and neural networks. Here are some papers by the winning team:
R. Bell, Y. Koren, C. Volinsky, "The BellKor 2008 Solution to the Netflix Prize", (2008).
A. Töscher, M. Jahrer, “The BigChaos Solution to the Netflix Prize 2008", (2008).
A. Töscher, M. Jahrer, R. Legenstein, "Improved Neighborhood-Based Algorithms for Large-Scale Recommender Systems", SIGKDD Workshop on Large-Scale Recommender Systems and the Netflix Prize Competition (KDD’08) , ACM Press (2008).
Y. Koren, "The BellKor Solution to the Netflix Grand Prize", (2009).
A. Töscher, M. Jahrer, R. Bell, "The BigChaos Solution to the Netflix Grand Prize", (2009).
M. Piotte, M. Chabbert, "The Pragmatic Theory solution to the Netflix Grand Prize", (2009).
The 2008 papers are from the first year's Progress Prize. I recommend reading the earlier ones first because the later ones build upon the previous work.
I bumped on this paper today:
Amazon.com Recommendations: Item-to-Item Collaborative Filtering
Maybe it provides additional information.
(Disclamer: I used to work at Amazon, though I didn't work on the recommendations team.)
ewernli's answer should be the correct one -- the paper links to Amazon's original recommendation system, and from what I can tell (both from personal experience as an Amazon shopper and having worked on similar systems at other companies), very little has changed: at its core, Amazon's recommendation feature is still very heavily based on item-to-item collaborative filtering.
Just look at what form the recommendations take: on my front page, they're all either of the form "You viewed X...Customers who also viewed this also viewed...", or else a melange of items similar to things I've bought or viewed before. If I specifically go to my "Recommended for You" page, every item describes why it's recommended for me: "Recommended because you purchased...", "Recommended because you added X to your wishlist...", etc. This is a classic sign of item-to-item collaborative filtering.
So how does item-to-item collaborative filtering work? Basically, for each item, you build a "neighborhood" of related items (e.g., by looking at what items people have viewed together or what items people have bought together -- to determine similarity, you can use metrics like the Jaccard index; correlation is another possibility, though I suspect Amazon doesn't use ratings data very heavily). Then, whenever I view an item X or make a purchase Y, Amazon suggests me things in the same neighborhood as X or Y.
Some other approaches that Amazon could potentially use, but likely doesn't, are described here: http://blog.echen.me/2011/02/15/an-overview-of-item-to-item-collaborative-filtering-with-amazons-recommendation-system/
A lot of what Dave describes is almost certainly not done at Amazon. (Ratings by those in my social network? Nope, Amazon doesn't have any of my social data. This would be a massive privacy issue in any case, so it'd be tricky for Amazon to do even if they had that data: people don't want their friends to know what books or movies they're buying. Demographic information? Nope, nothing in the recommendations suggests they're looking at this. [Unlike Netflix, who does surface what other people in my area are watching.])
I don't have any knowledge of Amazon's algorithm specifically, but one component of such an algorithm would probably involve tracking groups of items frequently ordered together, and then using that data to recommend other items in the group when a customer purchases some subset of the group.
Another possibility would be to track the frequency of item B being ordered within N days after ordering item A, which could suggest a correlation.
As far I know, it's use Case-Based Reasoning as an engine for it.
You can see in this sources: here, here and here.
There are many sources in google searching for amazon and case-based reasoning.
If you want a hands-on tutorial (using open-source R) then you could do worse than going through this:
https://gist.github.com/yoshiki146/31d4a46c3d8e906c3cd24f425568d34e
It is a run-time optimised version of another piece of work:
http://www.salemmarafi.com/code/collaborative-filtering-r/
However, the variation of the code on the first link runs MUCH faster so I recommend using that (I found the only slow part of yoshiki146's code is the final routine which generates the recommendation at user level - it took about an hour with my data on my machine).
I adapted this code to work as a recommendation engine for the retailer I work for.
The algorithm used is - as others have said above - collaborative filtering. This method of CF calculates a cosine similarity matrix and then sorts by that similarity to find the 'nearest neighbour' for each element (music band in the example given, retail product in my application).
The resulting table can recommend a band/product based on another chosen band/product.
The next section of the code goes a step further with USER (or customer) based collaborative filtering.
The output of this is a large table with the top 100 bands/products recommended for a given user/customer
Someone did a presentation at our University on something similar last week, and referenced the Amazon recommendation system. I believe that it uses a form of K-Means Clustering to cluster people into their different buying habits. Hope this helps :)
Check this out too: Link and as HTML.
Using Alexa.com I can find out that 0.05 % of all internet users visit some site, but how many people equals that 0.05% ?
Is there any facts like: in US 1% from Alexa statistics is nearly equals 15 mln of people, and in France 1% is about 3 mln of people, for example?
Compete.com reckon that google has something like 147m monthly users, and alexa says they have 34% monthly. Ergo, you could estimate it to be approx 450million. That's one way of estimating...
Of course the data from both Compete and Alexa gets progressively more rubbish the smaller the site gets. Data for the biggest sites is likely to be the least skewed, but I still wouldn't trust it for anything serious.
InternetWorldStats.com has a number of 1.6 billion internet users worldwide
You can get world population statistics online - estimates are available here:
Wikipedia World Population
This will help you to rough-up some statistics, but you need to remember...
Population is not equal to "has an internet connection"
0.5% does not really equate to "internet users" - it's more like 0.5% of people who are the kind of people that would install a random toolbar that offers them very little - so you need to bear in mind it's a certain "type" of person and that the statistics will be skewed (which is why www.alexa.com isn't ranked as EVERYONE with the Alexa toolbar is going to visit that website at some point
The smaller your website, the less accurate the statistics are. If you aren't in the top 100,000 websites in the world, the statistics become largely an anomaly as they "estimate up" the statistics from the toolbar users into an "average if everyone had a toolbar".
Hope this helps.
Alexa doesn't show "X% of France users use this site". Instead it shows "X% of worldwide users use this site". So you don't have such information except the margin cases when 100% of site users are from one country.
Also most toolbars show just Alexa Rank. You can get online converter "Alexa Rank -> Monthly Traffic" here - http://netberry.co.uk/alexa-rank-explained.htm
Well, here (http://netberry.co.uk/alexa-rank-explained.htm) is described a way to make a traffic estimation based on the alexa rank. Basically, the author has offered an exponential function, not linear or polynomial.
There is also a web service which aggregated alexa rank information and has already performed all the calculations: http://www.rank2traffic.com/
I checked it, and for 80% of the websites the results are very satisfying. Still, there is 20% of (possibly, manipulated by webmasters) incorrect data (the estimated traffic is much higher than in reality)
I've always been curious as to how these systems work. For example, how do netflix or Amazon determine what recommendations to make based on past purchases and/or ratings? Are there any algorithms to read up on?
Just so there's no misperceptions here, there's no practical reason for me asking. I'm just asking out of sheer curiosity.
(Also, if there's an existing question on this topic, point me to it. "Recommendations system" is a difficult term to search for.)
At it's most basic, most recommendation systems work by saying one of two things.
User-based recommendations:
If User A likes Items 1,2,3,4, and 5,
And User B likes Items 1,2,3, and 4
Then User B is quite likely to also like Item 5
Item-based recommendations:
If Users who purchase item 1 are also disproportionately likely to purchase item 2
And User A purchased item 1
Then User A will probably be interested in item 2
And here's a brain dump of algorithms you ought to know:
- Set similarity (Jaccard index & Tanimoto coefficient)
- n-Dimensional Euclidean distance
- k-means algorithm
- Support Vector Machines
This is such a commercially important application that Netflix introduced a $1 million prize for improving their recommendations by 10%.
After a couple of years people are getting close (I think they're up around 9% now) but it's hard for many, many reasons. Probably the biggest factor or the biggest initial improvement in the Netflix Prize was the use of a statistical technique called singular value decomposition.
I highly recommend you read If You Liked This, You’re Sure to Love That for an in-depth discussion of the Netflix Prize in particular and recommendation systems in general.
Basically though the principle of Amazon and so on is the same: they look for patterns. If someone bought the Star Wars Trilogy well there's a better than even chance they like Buffy the Vampire Slayer more than the average customer (purely made up example).
The O'Reilly book "Programming Collective Intelligence" has a nice chapter showing how it works. Very readable.
The code examples are all written in Python, but that's not a big problem.
GroupLens Research at the University of Minnesota studies recommender systems and generously shares their research and datasets.
Their research expands a bit each year and now considers specifics like online communities, social collaborative filtering, and the UI challenges in presenting complex data.
The Netflix algorithm for its recommendation system is actually a competitive endeavor in which programmers continue to compete to make gains in the accuracy of the system.
But in the most basic terms, a recommendation system would examine the choices of users who closely match another user's demographic/interest information.
So if you are a white male, 25 years old, from New York City, the recommendation system might try and bring you products purchased by other white males in the northeast United States in the age range of 21-30.
Edit: It should also be noted that the more information you have about your users, the more closely you can refine your algorithms to match what other people are doing to what may interest the user in question.
This is a classification problem - that is, the classification of users into groups of users who are likely to be interested in certain items.
Once classified into such a group, it is easy to examine the purchases/likes of other users in that group and recommend them.
Therefore, Bayesian Classification and neural networks (multilayer perceptrons, radial basis functions, support vector machines) are worth reading up on.
One technique is to group users into clusters and recommend products from other users in the same cluster.
There're mainly two types of recommender systems, which work differently:
1. Content-based.
These systems make recommendations based on characteristic information. This is information about the items (keywords, categories, etc.) and users (preferences, profiles, etc.).
2. Collaborative filtering.
These systems are based on user-item interactions. This is information such as ratings, number of purchases, likes, etc.
This article (published by the company I work at) provides an overview of the two systems, some practical examples, and suggests when it makes sense to implement them.
Ofcourse there is algorithms that will recommend you with prefered items. Different data mining techniques have been implemented for that. If you want more basic details on Recommender System then visit this blog. Here every basics has been covered to know about Recommender System.