Start by defining a clear conversion funnel from organic impressions to purchases, then estimate each stage's rate using existing organic data (e.g., search and feed) while correcting for biases. Scale the per-user revenue to the full population, adjust for cannibalization, and run sensitivity analyses on key assumptions like CTR and AOV.
Pro tip: Emphasize that you would validate your estimates with a holdout experiment or a small-scale launch to measure incremental lift, rather than relying solely on observational data. This shows you understand the difference between correlation and causation, which is critical for a Data Scientist at Meta.
Outline the conversion funnel: organic impressions → clicks (CTR) → product page views → add-to-carts → purchases. Use existing organic channels (e.g., in-app search, feed) to estimate each stage's rate, ensuring the data is representative.
Identify potential biases (e.g., selection bias, position bias) in organic data and adjust using methods like propensity score weighting, stratified sampling, or instrumental variables. For CTR, consider using search results as a proxy but adjust for intent differences.
Multiply per-user revenue by the total user base, but account for user heterogeneity by segmenting users (e.g., by activity level, demographics) and weighting accordingly. Estimate cannibalization by measuring overlap with existing purchase paths and applying a discount factor.
Perform sensitivity analysis on key assumptions (CTR, conversion rates, AOV) to understand revenue range. Propose a holdout experiment or phased rollout to measure true incremental impact and refine estimates.
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