search

facebookexperimental / Robyn

Robyn is an experimental, AI/ML-powered and open sourced Marketing Mix Modeling (MMM) package from Meta Marketing Science. Our mission is to democratise modeling knowledge, inspire the industry through innovation, reduce human bias in the modeling process & build a strong open source marketing science community.
https://facebookexperimental.github.io/Robyn/
MIT License
1.08k stars 322 forks source link

Budget Allocator - Greater ROI with similar spend #861

Closed bart-vanvlerken closed 7 months ago

bart-vanvlerken commented 7 months ago

Hi everyone, hope you're doing well. A client that relies solely on performance marketing wanted to experiment with mid-funnel spend in order to build their brand. The MMM showed that this was effective, so that's great. Now we arrive at the budget allocator. Because most channels are affiliates, the client wanted to fix spending or decrease it to 0 (see the plot below). However, I'm getting a better ROI with the same spend for some channels, surely this can't be possible. Has any of you encountered this before? I'd appreciate your feedback!

1_89_6_reallocated_best_roas

gufengzhou commented 7 months ago

There's been a fix on this, can you please update and retry? In general it's not impossible to have increasing ROAS, if you are at the beginning of an S-curve, mROAS and ROAS will both grow.

bart-vanvlerken commented 7 months ago

That's what I thought! We've since chosen a different way forward so unfortunately I cannot test and replicate, but it's good to know that there's been an update! I will re-open if the issue occurs again.