A Real-World Implementation of Unbiased Lift-based Bidding System

• URL: http://arxiv.org/abs/2202.13868v1
• Date: Wed, 23 Feb 2022 01:15:54 GMT
• Title: A Real-World Implementation of Unbiased Lift-based Bidding System
• Authors: Daisuke Moriwaki and Yuta Hayakawa and Akira Matsui and Yuta Saito and Isshu Munemasa and Masashi Shibata
• Abstract summary: A typical Demand-Side Platform (DSP)bids based on the predicted probability of click and conversion right after an ad impression. Recent studies find such a strategy is suboptimal and propose a better bidding strategy named lift-based bidding. Lift-based bidding simply bids the price according to the lift effect of the ad impression and achieves target metrics such as sales.
• Score: 8.35120274877627
• License: http://creativecommons.org/publicdomain/zero/1.0/
• Abstract: In display ad auctions of Real-Time Bid-ding (RTB), a typical Demand-Side Platform (DSP)bids based on the predicted probability of click and conversion right after an ad impression. Recent studies find such a strategy is suboptimal and propose a better bidding strategy named lift-based bidding.Lift-based bidding simply bids the price according to the lift effect of the ad impression and achieves maximization of target metrics such as sales. Despiteits superiority, lift-based bidding has not yet been widely accepted in the advertising industry. For one reason, lift-based bidding is less profitable for DSP providers under the current billing rule. Second, thepractical usefulness of lift-based bidding is not widely understood in the online advertising industry due to the lack of a comprehensive investigation of its impact.We here propose a practically-implementable lift-based bidding system that perfectly fits the current billing rules. We conduct extensive experiments usinga real-world advertising campaign and examine the performance under various settings. We find that lift-based bidding, especially unbiased lift-based bidding is most profitable for both DSP providers and advertisers. Our ablation study highlights that lift-based bidding has a good property for currently dominant first price auctions. The results will motivate the online

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