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CRO Glossary

Bandit Test

An experimentation approach that dynamically shifts traffic toward better-performing variants while the test is still running.

Unlike a classic A/B test, which holds traffic allocation fixed until a predetermined end point, a multi-armed bandit test continuously reallocates traffic in favor of whichever variant is currently performing best. The algorithm balances 'exploration' (still testing all variants to gather data) against 'exploitation' (sending more users to the apparent winner) to minimize the cost of showing an inferior variant to users.

Bandits are well suited to situations where the cost of a bad variant is high and the test doesn't need to produce a clean, publishable, statistically airtight comparison — for example, optimizing a homepage banner or headline during a short-lived marketing campaign or news event. They're generally a poor fit for situations requiring rigorous confidence in a specific effect size, since the constantly shifting allocation makes the resulting statistics harder to interpret than a fixed-split test.

A common example is testing five headline variants for a time-sensitive promotional email; a bandit algorithm will quickly funnel most opens toward whichever headline is getting the best click-through rate, reducing the number of users who ever see an underperforming version.

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