Simultaneous Advertiser Profit and Ad Platform Revenue Maximization in Programmatic Advertising via Feedback Control
- Resource Type
- Conference
- Authors
- Karlsson, Niklas
- Source
- 2022 American Control Conference (ACC) Control Conference (ACC), 2022 American. :5374-5381 Jun, 2022
- Subject
- Aerospace
Bioengineering
Communication, Networking and Broadcast Technologies
Components, Circuits, Devices and Systems
Power, Energy and Industry Applications
Robotics and Control Systems
Signal Processing and Analysis
Transportation
Control systems
Real-time systems
Feedback control
Advertising
Optimization
Cost accounting
Real-time Bidding
Programmatic Advertising
Control in Online Advertising
- Language
- ISSN
- 2378-5861
The majority of online advertising is served through real-time bidding, and advertising campaigns are often defined as optimization problems. This paper deals with simultaneous advertiser profit and ad platform revenue maximization subject to multiple advertiser performance constraints and is an extension to the work published in [1]. The optimal bidding mechanism is derived for a large family of advertising problems; and it is shown how the solution can be implemented as three separate subsystems dealing with impression valuation, campaign control, and bid shading optimization, respectively. Feedback control is a critical aspect of the solution and makes the optimization scalable and adaptive. A proof of concept control system is proposed and simulated to demonstrate the impact of trading advertiser profit for ad platform revenue.