Practical Constrained Optimization of Auction Mechanisms in E-Commerce Sponsored Search Advertising
Sponsored search in E-commerce platforms such as Amazon, Taobao and Tmall provides sellers an effective way to reach potential buyers with most relevant purpose. In this paper, we study the auction mechanism optimization problem in sponsored search on Alibaba's mobile E-commerce platform. Besides generating revenue, we are supposed to maintain an efficient marketplace with plenty of quality users, guarantee a reasonable return on investment (ROI) for advertisers, and meanwhile, facilitate a pleasant shopping experience for the users. These requirements essentially pose a constrained optimization problem. Directly optimizing over auction parameters yields a discontinuous, non-convex problem that denies effective solutions. One of our major contribution is a practical convex optimization formulation of the original problem. We devise a novel re-parametrization of auction mechanism with discrete sets of representative instances. To construct the optimization problem, we build an auction simulation system which estimates the resulted business indicators of the selected parameters by replaying the auctions recorded from real online requests. We summarized the experiments on real search traffics to analyze the effects of fidelity of auction simulation, the efficacy under various constraint targets and the influence of regularization. The experiment results show that with proper entropy regularization, we are able to maximize revenue while constraining other business indicators within given ranges.
Code (0)
등록된 구현이 없습니다.
Similar Papers 제목 키워드 기반
Optimizing Multiple Performance Metrics with Deep GSP Auctions for E-commerce Advertising
In e-commerce advertising, the ad platform usually relies on auction mechanisms to optimize different performance metrics, such as user experience, advertiser utility, and platform revenue. However, most of the state-of-…
Neural Auction: End-to-End Learning of Auction Mechanisms for E-Commerce Advertising
In e-commerce advertising, it is crucial to jointly consider various performance metrics, e.g., user experience, advertiser utility, and platform revenue. Traditional auction mechanisms, such as GSP and VCG auctions, can…
Bandits for Sponsored Search Auctions under Unknown Valuation Model: Case Study in E-Commerce Advertising
This paper presents a bidding system for sponsored search auctions under an unknown valuation model. This formulation assumes that the bidder's value is unknown, evolving arbitrarily, and observed only upon winning an au…
Enabling Automatic Certification of Online Auctions
We consider the problem of building up trust in a network of online auctions by software agents. This requires agents to have a deeper understanding of auction mechanisms and be able to verify desirable properties of a g…
TranslationNMA: Neural Multi-slot Auctions with Externalities for Online Advertising
Online advertising driven by auctions brings billions of dollars in revenue for social networking services and e-commerce platforms. GSP auctions, which are simple and easy to understand for advertisers, have almost beco…