B Evidence Grade B Graded accuracy verified by the review judge Safe to Cite Recent

10%

10% -- customer acquisition difference for Display advertiser bandit-optimized campaigns (Wharton/University of Michigan study) (2025)

2025  · Wharton and University of Michigan

A major display advertiser running bandit-optimized campaigns acquired roughly 10% fewer actual customers when optimizing for clicks compared to optimizing for conversions.

  • Result occurred when optimizing for clicks rather than conversions
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Attribution: Wharton and University of Michigan View source
Lighthouse Research Team
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Source verified Evidence graded
Value
10%
Unit
Percentage
Data Vintage
2025
Entity
Display advertiser bandit-optimized campaigns (Wharton/University of Michigan study)
B
Strong, reliable evidence

Sourced from a well-regarded research firm or industry leader with transparent methodology and a reasonably large sample.

61/100 confidence

Single source - not yet corroborated

Extraction
95
Source Trust
60
Citation Chain
20
Independence
30
Methodology
60
Freshness
95
Wharton and University of Michigan Primary Tier A
https://kirro.io/multi-armed-bandit-testing ↗
Confidence: 59/100 Vintage: 2025 Channel: Deep Crawl
Source Article
Multi-armed bandit testing explained (decision framework)
A multi-armed bandit is an algorithm that automatically sends more traffic to whichever version of your page is winning. Instead of splitting visitors 50/50 and waiting weeks for a result, the algorithm learns as it goes. It shifts traffic toward the better performer in real time. Sounds like a no-b…
Original Research
Wharton and University of Michigan · Original study ↗

Study published in Marketing Science; field experiment with a major display advertiser

Methodology documented
Industrymarketing
Plain Text
Display advertiser bandit-optimized campaigns (Wharton/University of Michigan study): 10% customer acquisition difference. Source: Wharton and University of Michigan (2025). Via Lighthouse Intelligence -- https://lighthousedata.io/data/bandit-click-optimization-fewer-customers
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<blockquote cite="https://lighthousedata.io/data/bandit-click-optimization-fewer-customers" style="border-left:3px solid #2563eb;padding:12px 16px;margin:16px 0;font-family:system-ui,sans-serif;background:#f0f4ff;"><strong>10%</strong> -- customer acquisition difference for Display advertiser bandit-optimized campaigns (Wharton/University of Michigan study)<br><small>Source: Wharton and University of Michigan (2025) · <a href="https://lighthousedata.io/data/bandit-click-optimization-fewer-customers" target="_blank" rel="noopener">Lighthouse Intelligence</a></small></blockquote>
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