Bytedance's algorithm I The upbeat

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In focus / Bytedance
Issue #16

  • How does Bytedance's algorithm work?
  • The upbeat
Dear readers,

This is the final issue of our Bytedance newsletter. We’ve enjoyed exploring the ins and outs of what may be China’s most secretive tech startup. Of course, TechNode’s coverage of Bytedance will continue on our English-language news site.

Next up: We will pivot to a new In Focus series that takes a closer look at Meituan-Dianping, China’s lifestyle super-app.

In our Bytedance finale, we take a closer look at the notorious artificial intelligence-based recommendation system that powers many of the company’s apps.

As usual, we end with the most important news updates on the world’s most valuable startup. Please reply to this email with your comments, feedback, or inquiries.

Enjoy,
Wei and Tony
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How does Bytedance's algorithm work?
The technology that powers Bytedance apps
Providing online news and content for millions of users in China, Bytedance’s flagship app Jinri Toutiao (translated as “Today’s Headlines”) doesn’t require an editor-in-chief to lead its content strategy like other news platforms do, according to company founder and CEO Zhang Yiming.

While the news aggregator app with around 115 million daily active users does have an executive editor whose job is to make sure the content on the app complies with China’s internet content regulations, Zhang insists that the best way to manage content is “not to interfere.”

The gap created by the absence of human interference is filled by the company’s artificial intelligence and deep-learning algorithms that deliver a selection of personalized content to its users.

The app shows an endless feed of posts and videos recommended by its algorithms, all based on the user’s age, sex, location, and personal preference. As you read posts recommended by the platform, it learns what you like and don’t like by tracking your behavior: what you click to read, what you choose to dismiss, how long you spend on an article, which stories you comment on, and which stories you choose to share. The behavior recorded by the system then spits out recommendations to populate your feed.

If the news feed seems infinite, it’s because there are nearly 1.5 million publishers on the Jinri Toutiao platform—as of March 2018—comprising not only news organizations, but also individuals and teams of bloggers pushing out content.

Though criticized by the authorities as being “addictive” and “encouraging vulgar content,” the mechanism contributed massively to the early success of Jinri Toutiao, and therefore Bytedance as well.

The company has replicated the recommendation system with other products such as short-video platform Douyin and its virally popular international version, TikTok. Its success speaks for itself.

According to a person who is familiar with Bytedance’s recommendation system, it was initially based on Google’s Wide & Deep Learning, open-source models that combine the strengths of the wide linear model and the deep neural network, two types of artificial neural networks that can perform tasks usually carried out by a human brain.

The Wide & Deep Learning system is used for recommendations on Google Play, the search engine’s popular Android mobile app store with more than 1 billion active users, and has led to “significant improvement” in app downloads, according to a paper by a group of Google researchers.

“The recommendation system is now Bytedance’s core technology that underpins everything from its news app to its short-video apps,” said the person familiar with the matter.

Under the hood

In January 2018, Bytedance held a meeting to disclose how the algorithms work. The move was in response to pressure from internet watchdogs and state media, which had criticized the Jinri Toutiao app for spreading pornography and allowing machines to make content decisions (in Chinese).

At the meeting, Bytedance’s algorithm architect Cao Huanhuan explained the principles of the recommendation system used by Jinri Toutiao and many of the company’s other apps.

The full text of his speech can be found here (in Chinese).

According to Cao, the system’s main inputs consist of three kinds of data: the content profile, the user profile, and the environment profile.

The content profile contains the categories and keywords of each article, as well as the respective relevance values associated with them.

As an example, Cao highlighted an article on the Jinri Toutiao app about the Russian tennis player Maria Sharapova’s 17th consecutive defeat by American player Serena Williams. The article was allocated to the Sports and Tennis channels; its keywords included “Xiaowei” [Williams' nickname], “Sharapova,” “Wimbledon Championships,” and “semi-final.”

The categorizing was performed by natural language processing, a branch of artificial intelligence that deals with the interaction between computers and humans using natural languages, according to Cao.

The system also recorded the values of the relevance of the categories and keywords to the story. For example, the relevance value of the keyword “semi-final” is 0.7198 while that of “Sharapova” is 0.9282, meaning “Sharapova” is more relevant to the story than “semi-final.”

The profile also included when the article was published, which helps the system to decide when to stop recommending this particular story.

The user profile consists of a series of characteristics for each user, such as browsing history, search history, type of device, sex, age, location, and behavioral traits. While characteristics such as sex, age, and location set the tone for the kind of content that should be recommended to the user, other inputs tell the system the user's preferences on specific subjects and themes.

The environment profile is dependent on when and in which scenario the app is used: at work, commuting, traveling, and so on. That is because “people have different preferences in different situations,” said Cao. Other environmental traits include the weather and the user’s internet connection—for instance, cellular networks or Wi-Fi.

The distribution process begins with the system giving a recommendation value to a newly published story based on its quality and potential readership. The bigger the value is, the greater the number of users will see the story on their feeds.

Once published, the story’s recommendation value changes as users interact with it. Positive actions such as likes, comments, and shares increase the story’s recommendation value, which brings more exposure. Negative actions such as dislikes and short reading times decrease the value. The recommendation value also decreases over time.

Recommendation-as-a-Service

Recently, Bytedance has moved to commercialize its recommendation tool, packaging the algorithm for use across different product lines and platforms.

Named “ByteAir,” the platform can use big data and machine learning—as well as Bytedance’s experience in news, live-streaming, social, and e-commerce—to create customized recommendation services for Bytedance’s partners, according to its website.

The model is “recommendation as a service,” according to the person we spoke with, who believes that recommendation is a universal demand for online service providers

“I’m sure they’re gonna have tens of thousands of applications and services that will gladly pay them money to use their recommendation service,” the person said.

“And in doing that, Bytedance will be able to make its recommendation better, because I’m sure part of the contract would require these apps to share their user data with [Bytedance].”
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The upbeat
Highlights from recent headlines
Pressure in the US

Reuters: “Senator Marco Rubio on Wednesday asked a US national security panel to review TikTok owner Beijing ByteDance Technology Co’s acquisition of Musical.ly, arguing TikTok is used by the Chinese government to censor politically sensitive content.”

As trade tensions between China and the US intensify, more and more Chinese companies are facing scrutiny by US regulators. While the Committee on Foreign Investment in the United States (CFIUS) has avoided using censorship to justify reviews of deals, it wouldn’t be entirely impossible for the panel to introduce a new precedent.

TechNode: “TikTok will hire two former US congressmen as part of an external team to review its content moderation policies, including child safety, hate speech, misinformation, and bullying, the company said in a statement on Tuesday.”

The news came less than a month after a report from the Guardian newspaper detailing the platform’s moderation guidelines, which includes removing politically sensitive content related to China. While TikTok has said on a number of occasions that the Chinese government does not require it to enforce censorship on platforms outside China, the app has been actively adjusting its content policies to guard against a business-disrupting review or suspension.

New hires

CNBC: “TikTok, the upstart social media app, has opened an office in Silicon Valley and begun to poach Facebook employees.”

Bytedance has been trying to better manage TikTok’s rapid growth as the app becomes an increasingly important driver of its parent company’s overall expansion. Because Facebook has experienced both extreme growth and severe regulatory backlash, it is an ideal company from which to poach talent with expertise in areas such as content and cybersecurity policies.

Economic Times: TikTok has appointed Nikhil Gandhi, former president and COO at Times NetWork, the TV and entertainment unit of media conglomerate Times Group, as its new India head to boost the app’s monetization and address government concerns.

Gandhi’s rich leadership experience in media and entertainment is likely to help Bytedance further speed up monetizing its enormous user base in India. His network in the country could also help TikTok better communicate and negotiate pressing issues such as privacy and content policies on the platform with the Indian government.

Policy update

TechCrunch: “Already under fire for advancing Chinese foreign policy by censoring topics like Hong Kong’s protests and pro-LGBT content, the Beijing-based video app TikTok is now further distancing itself from US social media platforms, like Facebook, Twitter and Instagram, with a ban on political ads on its app.”

Although political ads could bring in a sizeable amount of revenue for TikTok, which is still in its early stages of monetization, the accompanying risks may be too great for the app. Remaining an entertainment-focused platform could help the platform deflect attention from both the Chinese government and regulators in overseas markets.

Business moves

The Information: “China’s ByteDance, whose TikTok video app has taken the US by storm, is trying to sell its overseas news and entertainment app, called TopBuzz, people familiar with the matter said.”

Bytedance is gradually doing away with underperforming products to better focus on TikTok, which has become increasingly important to the company as its growth in the Chinese market slows down amid intensifying competition with rival app Kuaishou. As the overseas version of Bytedance’s content aggregator Jinri Toutiao, TopBuzz had proved unable to capitalize on clickbait articles the way Bytedance had in China.

Caixin Global: Bytedance will release an education product that functions as a study companion for children early next year, venturing further into China’s ultra-competitive education and hardware market.

Bytedance has been expanding its line of products with frequent product launches, though many of them have been underperforming. The foray into the education hardware market, where Bytedance has very limited experience, may be a bet with poorer odds in its favor.

TechNode: “Bytedance is gradually opening up access to its recommendation algorithm used in apps such as short-video platform Douyin and content aggregator Jinri Toutiao to external companies, media outlet TechPlanet reported, citing people with knowledge of the matter.”

Bytedance sees opportunity in packaging and selling the recommendation algorithm that has powered the success of its biggest apps. In so doing, the company is following its peers in the broader Chinese tech industry, which are pivoting toward enterprise-facing services to power growth at a time when the world’s second-largest economy is experiencing a major deceleration.
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