Episode Details

This story was originally published on HackerNoon at: https://hackernoon.com/how-to-use-propensity-score-matching-to-measure-down-stream-causal-impact-of-an-event.
How can we know ours ads are making impact that we aim for? What if targeted ads are not working the way we want them to?
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Ad exposure is not randomly assigned – algorithms may show ads more to highly active users. As a result, “unobservable factors make exposure endogenous,” meaning there are hidden biases in who sees the ad. This is where propensity score matching (PSM) comes in – it’s a statistical way to create apples-to-apples comparisons.