Shapley Value in Marketing: 4 Ways to Handle Repeated Channels

In marketing attribution, the Shapley Value helps analyze customer journeys. A study explores adapting this method when channels like “email” or “phone call” appear multiple times in a journey. Here are four key strategies:

Treating Each Occurrence as an Individual Instance: Each channel appearance is considered a distinct “player” in the Shapley Value calculation. After computing marginal contributions, results are aggregated by channel to assess overall impact.
Incorporating Sequential Context: The characteristic function is modified to reflect not just the presence of a channel but its position in the sequence, potentially using the “Ordered Shapley Value.”
Weight Adjustment for Repeated Occurrences: Different weights are applied to consecutive versus interleaved channel repetitions. Consecutive occurrences might see diminishing returns due to saturation, while interleaved ones could have a more significant effect.
Exploring Literature and Code: The study seeks references and code examples to validate and implement these approaches, addressing the challenge of accurately capturing the marginal contribution of repeated channels in marketing attribution models.

Source: stackoverflow.com