The $36,000 A/B Test: What Optimizely Charges vs. What the Algorithm Actually Costs

1. 1Calculate the cost of using Optimizely for A/B testing based on the $36K/yr minimum charge
2. 2Estimate the cost of implementing the Thompson Sampling algorithm at $0.005 per call
3. 3Compare the costs of Optimizely and alternative A/B testing tools that utilize the Thompson Sampling algorithm
4. 4Evaluate the trade-offs between using a commercial A/B testing tool and building a custom solution
5. 5Research open-source alternatives to Optimizely for A/B testing and their pricing models

Product managers and marketers can benefit from understanding the cost of A/B testing tools and optimizing their budgets, while software engineers can learn about alternative implementations of the Thompson Sampling algorithm

💡 The Thompson Sampling algorithm used in A/B testing has a significantly lower cost than commercial tools like Optimizely, making it a potential area for cost optimization

💡 Did you know Optimizely's A/B testing costs $36K/yr, but the Thompson Sampling algorithm itself costs only $0.005 per call? 🤯