Recommender System

RECOMMENDER SYSTEM
Building Recommender System in

Industries
Content
1. Background:
Definition, Problem Construction and Possible Solutions.
2. SVD-like for Recommender System:

Matrix Factorization to model matrix completion problem
3. Implicit and Explicit signal:

How to model Explicit and Implicit Signal with SVD-like RecSys
4. Recommender System workflow:

Estimate, Filtering, Ranking and Randomization
5. Recommender System Cases

Background:
Recommender System in Industries
Background
● Chris Anderson in “The Long Tail
○ “We are leaving the age of information and entering the age of recommendation”
● CNN Money, “The race to create a 'smart' Google”:
○ “The Web, they say, is leaving the era of search and entering one of discovery.
What's the difference? Search is what you do when you're looking for something.
Discovery is when something wonderful that you didn't know existed, or didn't
know how to ask for, finds you.”
Source: compiled from Xavier Amatriain MLSS slides (2014)

Background
Background
Background
● Value of Recommendation
○ Netflix: 2/3 of the movies watched are recommended
○ Google News: recommendations generate 38% more click through
○ Amazon: 35% sales from recommendations
● Metrics which Affected by Recommendation
○ Activity Metrics: Increase in user retention
○ Financial Metrics: Increase in sales
○ Product Activity: Increase on number of unique items bought

Background
● The “Recommender problem”
○ Estimate a utility function that automatically predicts how a user will like an item.
○ Based on:
■ Past behavior
■ Relations to other users
■ Item similarity
■ Context

Background
The “Recommender problem”
● Let C be set of all users and let S be set of all possible recommendable items
● Let u be a utility function measuring the usefulness of item s to user c, i.e., u : C X S→R,
where R is a totally ordered set
● For each user c є C, we want to choose items s є S that maximize u.
Utility is usually represented by rating but can be any function

Background
Possible Solutions

Background
Problems in Recommendation System: Long Tail Sales
Background
Problems in Recommendation System
● Some users never use some items

SVD-like for Recommender System:
Matrix Factorization to model RecSys
Non-Personalized Recommendation
SVD-like Recommendation
Before dwelling to SVD-like RecSys CF, let’s focus on other approach:
1. Non-Personalized Recommendation
a. For example, Content based filtering, recommend similar items. Product name
embedding with Word2Vec
a. Recommend items based on similarity:
a. Pros:
i. Can be used if you don’t have any transaction history in the beginning
ii. Sometimes can beat popular items benchmark.
b. Cons:
i. Low diversity metrics
1. Buy (mie-ayam), next recommendation (mie-ayam)
arg max similarity(item1, item2)

Personalized Recommendation
2. Personalized Recommendation
arg max Probability(item, user)

1. Personalized Recommendation
a. Based on items, users, and items-users interaction
Alex Smola slides form Berkley ML

class (2012)
How to model matrix completion:
● Matrix Factorization

class (2012)
Matrix Factorization
● Latent Variable

class (2012)
Matrix Factorization
● Unfortunately we can’t user Matrix Factorization for sparse data

class (2012)
Funk SVD

class (2012)
Funk SVD
Source: compiled from Alex Lin slides,

CF with MF (2011)
SVD++

CF with MF (2011)
SVD++

CF with MF (2011)
SVD++

CF with MF (2011)
SVD++

CF with MF (2011)
Modeling Implicit and Explicit
Feedback
Explicit and Implicit Feedback
Two types of Feedback
Source: compiled from Li Yen Kuo

slides, Implicit RecSys (2019)
In rating systems, such as MovieLens and Allmusic, the value of an entry denotes the rating of
the item given by the user. Ratings can explicitly reflect the preference of an individual.

For instance, in a music podcast service, the value of an entry may denote the subscription.

Or play count

SVD-like model is so easy to fit any feedback type
1. Explicit
a. Rating (Netflix Competition)
Change the loss function to RMSE, regression task.

1. Explicit
b. Like/Dislike (Netflix Now)
Change the loss function to log-loss, sigmoid activation.

2. Implicit
a. Read/Not Read (Quora)
Change loss function to BPR Loss

2. Implicit
b. Frequency of Buy (Retail)
Change loss function to Regression loss with Alpha, Koren (2009)

Recommender System workflow:
Estimate, Ranking and Randomization
Recommender System Workflow
Source: compiled from Xavier

Amatriain MLSS slides (2014)
Modeling
1. Build Recommender System based on Watch/Not

a. Implicit model, maximize click through rate
2. Build Recommender System based on Rating
a. Explicit model, maximize preference
3. Build Recommender System based on Churn
a. Implicit model, maximize retention

Ranking
● Most recommendations are presented in a sorted list
● Recommendation can be understood as a ranking problem
● Popularity is the obvious baseline
● Ratings prediction is a clear secondary data input that allows for personalization
● Many other features can be added
Ranking

Randomization
Randomization
● We will focus on Diversity Metrics vs Accuracy Metrics.
● More diverse recommendation will increase Netflix CTR
● More accurate recommendation will increase Netflix CTR
● Diversity and Accuracy are negatively correlated.
Randomization
Recommender System Cases
Questions Pair: Similarity Task
Question 1
{0, 1}
Question 2
● Is Item A similar to Item B?

Input 1
Neural Networks {0, 1}
Input 2
Temporal Recommendation Task
Temporal Recommendation Task
Item 1
Item 2
Item 4
Item 1
Item 2
Item 5
RNN
Item 1
Item 2
Item 3
Recommendation Task
Recommendation Task
Hotel 33
Hotel 77
Click .
data .
.
Hotel 44
Searching Task
Pseudo code BPR
For K times:
1. A = Sample random label positive

2. B = Sample random label negative
3. Dist = Model predict distance(A,B)
4. Update, make the distance farther.
60
Searching Task
Loss Function:
61
Searching Task
● Pointwise
○ for each items, train a classifier / regressor on it to predict how relevant it is
● Pairwise
○ given a pair of documents, compare which one has the highest rank.
● Listwise
○ sort the entire list of documents
■ Direct optimization of IR measures such as NDCG
Searching Task:
63
Matching Task
Cowok Cewek
1 A
Cowok Cewek
2 B
Cowok Cewek
3 C
Cowok Cewek
4 D
Matching Task
Cewek C Cowok 4
Cewek D Cowok 2
Cowok Cewek
1 Cewek A Cowok 1 A
Cewek B Cowok 3
Matching Task
Cewek 1
{0, 1}
Cowok 2
66
Matching Task
Loss Function:
67
Matching Task
Matching Algorithm:
Gale-Shapley
68
Matching Task
cowok cewek
cowok cewek
cowok cewek
cowok cewek
Matching Task
70
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Contact:
business@pacmannai.com
We believe everyone can build cool
Recommendation Systems
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RECOMMENDER SYSTEM

Building Recommender System in

2. SVD-like for Recommender System:

3. Implicit and Explicit signal:

4. Recommender System workﬂow:

5. Recommender System Cases

Source: compiled from Xavier Amatriain MLSS slides (2014)

Source: compiled from Xavier Amatriain MLSS slides (2014)

Source: compiled from Xavier Amatriain MLSS slides (2014)

Utility is usually represented by rating but can be any function

Source: compiled from Xavier Amatriain MLSS slides (2014)

Source: compiled from Xavier Amatriain MLSS slides (2014)

● Some users never use some items

arg max similarity(item1, item2)

arg max Probability(item, user)

Alex Smola slides form Berkley ML

Alex Smola slides form Berkley ML

Alex Smola slides form Berkley ML

● Unfortunately we can’t user Matrix Factorization for sparse data

Alex Smola slides form Berkley ML

Alex Smola slides form Berkley ML

Source: compiled from Alex Lin slides,

Source: compiled from Alex Lin slides,

Source: compiled from Alex Lin slides,

Source: compiled from Alex Lin slides,

Source: compiled from Alex Lin slides,

Source: compiled from Li Yen Kuo

Source: compiled from Li Yen Kuo

Source: compiled from Li Yen Kuo

Source: compiled from Li Yen Kuo

Change the loss function to RMSE, regression task.

Source: compiled from Li Yen Kuo

Change the loss function to log-loss, sigmoid activation.

Change loss function to BPR Loss

Change loss function to Regression loss with Alpha, Koren (2009)

Source: compiled from Xavier

1. Build Recommender System based on Watch/Not

Source: compiled from Xavier

Source: compiled from Xavier

● Is Item A similar to Item B?

Neural Networks {0, 1}

Pseudo code BPR

1. A = Sample random label positive

6 Classes in the past

State of the Art of Machine

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