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Results of Recommended Prices Array Not As Intended #329

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CourtneyMaynard opened this issue Jul 23, 2024 · 1 comment
Open

Results of Recommended Prices Array Not As Intended #329

CourtneyMaynard opened this issue Jul 23, 2024 · 1 comment

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@CourtneyMaynard
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When following the demo notebook, we are advised to set the prices as an array of ones since our KPI is revenue in dollars.
pricearray
However, the budget optimization using this price array returns unrealistic spend allocations that don't align with our expectations.

When manually changing the price array to match the known prices of our media channels, the budget optimization then returns the expected spend distribution allocations.

Is suggesting setting the prices array as an array of ones appropriate?

@rora00
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rora00 commented Aug 11, 2024

In the case where your media has a cost per metric of one the prices array should be set to one. I believe the example notebook does this because the default behaviour of utils.simulate_dummy_data uses a cost per metric of one unless you specify your own parameter cost_data.

In my case, e.g. when using TV costs as 100 dollars per TARP, I had to set the prices array with 100 instead of the default of 1 to get expected spend distribution allocations just as you did.

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