Glossary

A/B testing

Comparing variants to see which performs better, and the two ways to decide: a significance threshold or an adaptive bandit. What separates a valid test from an expensive guess.

A/B testing compares two or more variants — of a landing page, an ad, an offer — by sending traffic to each and comparing outcomes.

The requirements for a valid test

  1. Simultaneity. Variants must run at the same time. Comparing this week against last week compares populations, not variants.
  2. One change. Test one difference at a time, or you cannot attribute the effect.
  3. A decision rule fixed in advance. Either a sample size computed before the test (fixed-sample), or an allocation rule that does not depend on peeking (bandit).
  4. A metric that matters. Conversion rate is a proxy; the outcome is CPQL or revenue.

A fifth requirement is usually missed: the test needs an identifier that ties a lead back to the variant that produced it. Without a click ID written server-side, a lead arrives with no variant attached and the test measures noise.

Two families

Fixed-sampleBandit (Thompson Sampling)
Traffic splitequal, until the endadapts continuously
Stopping rulecomputed in advancenone needed
Cost of a loserpaid for the whole testshrinks as evidence arrives
Read mid-testinvalidmeaningful

The mistake that ruins most tests

Stopping when the numbers look convincing. With a fixed-sample test, checking repeatedly and stopping at the first significant result inflates the false positive rate — you will “find” winners that are noise. A bandit does not have this problem because it is not testing a hypothesis; it is allocating traffic.

Statistical significance

Statistical significance measures how unlikely an observed result would be if there were no real difference between the variants.

In a fixed-sample test the usual threshold is a p-value below 0.05: if the two variants were truly identical, there would be less than a 5% chance of seeing a difference this large.

It answers one question: “how surprising is this data, assuming there is no difference?” It does not answer three others:

  • “How likely is B better than A?” That is a different, Bayesian question, and the one a bandit answers directly with a win probability.
  • “Is the difference big enough to matter?” A significant 0.1% lift on 40,000 visitors is real and irrelevant.
  • “Should I stop the test now?” Significance is computed for one look at the data. Looking repeatedly and stopping at the first significant result inflates false positives.

The practical consequence: significance is the right tool for a decision that must be defended — a change with a large blast radius. For continuous traffic optimisation, where being wrong for a few days costs little, an adaptive allocation rule fits better than a threshold.

Thompson Sampling

Thompson Sampling is a Bayesian multi-armed bandit algorithm that allocates traffic between variants while learning which is best.

Each variant holds a Beta distribution over its conversion rate, starting from Beta(1, 1). For every visitor:

  1. Draw one sample from each variant’s distribution.
  2. Serve the variant with the highest sample.
  3. On a lead, increment the variant’s first parameter; on no lead, the second.

After s leads and f non-leads, the variant holds Beta(s + 1, f + 1), whose mean is about s / (s + f) and whose spread narrows with evidence.

Why it is used:

  • No stopping rule. You read a win probability at any time, instead of waiting for a sample size.
  • Cheap exploration. Traffic concentrates on the leader automatically, so the cost of a losing variant falls as the gap grows.
  • It never fully abandons a variant, which lets it recover if the audience changes.

What it is not:

  • Not a significance test. There is no p-value; the output is a probability that a variant is the best of the set, not a proof.
  • Not immune to bad data. If leads are attributed wrongly, the allocation optimises the wrong thing, faster.

Which one to use

The decisionUseWhy
A page change with a large blast radius, one look at the datafixed-sample + significancethe result must be defensible in a meeting
Continuous optimisation of creatives and landing pagesbanditthe cost of being wrong for three days is small, and traffic is finite
Traffic too small to reach a sample sizebanditit produces a useful allocation without ever “concluding”
Leads attributed by hand or by UTM onlyneither, fix attribution firstboth methods optimise whatever the data says, including a wrong join

Last updated: 2026-10-21

FAQ

How many variants should I test at once?+

Start with two. Every additional variant divides the evidence available to all of them, so a test with five variants reaches a conclusion far more slowly than a test with two — usually slower than the campaign lasts.

Is p < 0.05 a good decision rule?+

It is a convention, not a law. It answers "how surprising would this data be if there were no difference", not "how likely is it that B is better than A". Those are different questions, and the second is usually the one you care about.

How is Thompson Sampling different from a normal A/B test?+

It never splits traffic evenly for a fixed period, and it never declares a winner. It keeps a probability distribution over each variant's conversion rate and allocates each visitor by sampling from those distributions, so the allocation itself carries the result.

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