IS 608: Analytics for Digital Markets

Content

This course equips students with analytics methods essential for competing and innovating in digital  markets. Digital businesses like Netflix, TikTok, Instagram, and Amazon are relying heavily on data-driven experimentation, in terms of methods to test and experiment new features, advertisement, recommendations, and much more. Designed for business students, this course focuses on real-world use cases rather than technical implementation. Students will learn to evaluate trade-offs in method selection, understand best practices, and develop the ability to interpret test results to draw business-relevant conclusions. No prior coding experience is required. 

Amongst others, we will discuss the following methods:

• A/B Testing: Controlled experiments to compare the effectiveness of different versions of products, websites, or algorithms (e.g., determining which checkout design on Amazon leads to higher conversion rates).
• Multi-Armed Bandits: Adaptive experimentation techniques that power dynamic ad placements, real-time content recommendations (e.g., deciding which TikTok videos to show next), and personalized pricing strategies.
• Difference-in-Differences: Creating quasi-experiments to understand actions of competitors, platforms, and regulators (e.g., understanding how the availability of AI tools for generating photos affect Instagram influencer success).

In a group assignment, students will engage with the results of a real-world business experiment to derive business conclusions.

Learning Outcomes

After successfully completing the course, students..:

• ..can explain the relevance, impact, and practical applications for analytics in digital markets,
• ..can evaluate trade-offs, best practices, and pitfalls in the design of the different methods,
• ..are able to design A/B tests, bandits, and difference-in-differences,
• ..can assess the outcome and the validity of test results,
• ..can analyze experimental outcomes,
• ..are able to draw business-relevant conclusions,
• and can effectively communicate them to a business audience.

Necessary prerequisites:

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Recommended prerequisites:

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