Abstract: In many collaborative filtering (CF) applications, latent approaches are the preferred model choice due to their ability to generate real-time recommendations efficiently. However, the majority of existing latent models are not designed for implicit binary feedback (views, clicks, plays etc.) and perform poorly on data of this type. Developing accurate models from implicit feedback is becoming increasingly important in CF since implicit feedback can often be collected at lower cost and in much larger quantities than explicit preferences. The need for accurate latent models for implicit data was further emphasized by the recently conducted Million Song Dataset Challenge organized by Kaggle. In this challenge, the results for the best latent model were orders of magnitude worse than neighbor-based approaches, and all the top performing teams exclusively used neighbor-based models. We address this problem and propose a new latent approach for binary feedback in CF. In our model, neighborhood similarity information is used to guide latent factorization and derive accurate latent representations. We show that even with simple factorization methods like SVD, our approach outperforms existing models and produces state-of-the-art results.
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