Bandit algorithm

Definition

A machine learning approach that constantly explores new options while exploiting what currently works—basically A/B testing on steroids with mathematical justification.

Example Usage

We implemented a bandit algorithm to optimize ad creative, and it's learning faster than our creative team can argue about fonts.

Origin

From the 'multi-armed bandit' problem in statistics

Fun Fact

Named after the idea of a gambler facing multiple slot machines, trying to maximize winnings—very on-brand for marketing optimization

Source: Machine learning and programmatic advertising

Related Terms

Beginner

pixel

A tiny piece of tracking code embedded on websites that monitors user behavior and enables retargeting. The invisible spy that follows you around the internet suggesting you buy those shoes.

📣 Marketing / Advertising

Intermediate

Segmentation

The practice of dividing your audience into groups based on shared characteristics so you can send them slightly different versions of the same spam. It makes marketers feel like scientists even though most segments end up being "people who bought stuff" and "people who didn't."

📣 Marketing / Advertising

Beginner

advertorial

An advertisement disguised as editorial content, wearing a journalistic trench coat to sneak past readers' skepticism. The chameleon of marketing that makes disclosure labels work overtime.

📣 Marketing / Advertising

Beginner

cross-selling

Suggesting complementary products to customers based on what they're already purchasing. It's the retail equivalent of being a helpful friend, if that friend worked on commission.

📣 Marketing / Advertising

Intermediate

positioning statement

A internal document declaring who you are, who you serve, and why anyone should care—that almost nobody outside your marketing team will ever see. It's the North Star that guides messaging, assuming anyone reads it.

📣 Marketing / Advertising

Advanced

Cognitive bias

Those mental shortcuts our brains take that advertisers ruthlessly exploit—confirmation bias, anchoring, sunk cost fallacy—basically why marketing works despite being ridiculous.

📣 Marketing / Advertising

Translate This Term

See “Bandit algorithm” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator

Share This Term

Post on X Share on Facebook Share on LinkedIn

Discover a Term

Intermediate

punitive

The legal system's way of saying "we're not just compensating the victim, we're making an example out of you." Punitive ...