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This framework applies machine learning models to optimize ad creative generation quotas, directly addressing the diminishing returns problem in large-scale advertising platforms. By combining revenue prediction with constraint-based optimization algorithms, the system achieves a measurable 6.20% increase in platform revenue without relying on general-purpose AI hype. The core value lies in its specific application of ML for resource allocation efficiency within digital ad ecosystems.
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ACQ: A Deployed Two-Stage Framework for Automated Creative Quota Allocation in Large-Scale Online Advertising

arXiv2 min read

arXiv:2412.06167v2 Announce Type: replace Abstract: In digital advertising, demand-side platforms (DSPs) allow advertisers to create multiple ad creatives from a single photo for real-time bidding. While increasing the number of creatives can improve bidding opportunities, it cannot scale indefinitely, and the incremental advertising revenue typically exhibits diminishing returns as more creatives are generated. This raises a practical problem for DSPs: how to automatically determine an appropriate creative quota for each photo at scale. To address this problem, we propose Automated Creatives Quota (ACQ), a deployed two-stage framework for creative quota allocation in large-scale online advertising. In the first stage, ACQ predicts quota-conditioned expected revenue using a multi-task model built on an unbalanced binary tree, which is designed to handle the highly skewed revenue distribution across quota levels. In the second stage, ACQ formulates quota allocation under global capacity constraints as a multiple-choice knapsack problem (MCKP) and solves it with an efficient dual-based algorithm. Extensive offline experiments and online experiments on Kuaishou's advertising delivery platform demonstrate the effectiveness of ACQ, achieving a 6.20% increase in platform advertising revenue.

Abstract:In digital advertising, demand-side platforms (DSPs) allow advertisers to create multiple ad creatives from a single photo for real-time bidding. While increasing the number of creatives can improve bidding opportunities, it cannot scale indefinitely, and the incremental advertising revenue typically exhibits diminishing returns as more creatives are generated. This raises a practical problem for DSPs: how to automatically determine an appropriate creative quota for each photo at scale. To address this problem, we propose Automated Creatives Quota (ACQ), a deployed two-stage framework for creative quota allocation in large-scale online advertising. In the first stage, ACQ predicts quota-conditioned expected revenue using a multi-task model built on an unbalanced binary tree, which is designed to handle the highly skewed revenue distribution across quota levels. In the second stage, ACQ formulates quota allocation under global capacity constraints as a multiple-choice knapsack problem (MCKP) and solves it with an efficient dual-based algorithm. Extensive offline experiments and online experiments on Kuaishou's advertising delivery platform demonstrate the effectiveness of ACQ, achieving a 6.20% increase in platform advertising revenue.

Artificial Intelligence (cs.AI)

arXiv:2412.06167 [cs.AI]

(or arXiv:2412.06167v2 [cs.AI] for this version)

https://doi.org/10.48550/arXiv.2412.06167 Focus to learn more arXiv-issued DOI via DataCite

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Full text under the publisher's open licence · 264 words

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