In a recent seminar on Generative Marketing at the Technical University of Munich, Hagen Hoferichter, co-founder of Narratic and an expert in digital marketing, delivered an insightful talk on the future of A/B testing in website optimization.
 
Understanding Multi-Armed Bandits in Marketing
Hagen introduced the concept of multi-armed bandits (MABs) and their application in optimizing multiple content variations. Unlike traditional A/B testing, which typically compares only a few content variations, MABs allow for simultaneous testing of numerous variations. This method ensures a more dynamic and responsive approach to content optimization, adapting in real-time to user interactions.
 
Enhancing Long Marketing Funnels
A key highlight of Hagen‘s presentation was the potential of MABs in optimizing long marketing funnels. He demonstrated how even small improvements at each funnel stage can have exponential effects on the overall marketing effectiveness. This insight is particularly crucial for businesses with extended customer journeys, where multiple touchpoints can significantly influence the end-to-end conversion rates.
 
Conclusion
Hagen‘s guest talk provided valuable insights into the evolving landscape of digital marketing and the importance of adopting more sophisticated, data-driven approaches like multi-armed bandits. His expertise and forward-looking perspective offered actionable guidance for our students keen on understanding and leveraging the latest trends in digital marketing.
 
We thank Hagen for his contribution to our seminar and for sharing his expertise with the students of TUM School of Management!