AiAds

Abstract

Sponsored search has more than 20 years of history, and it has been proven to be a successful business model for online advertising. Based on the pay-per-click pricing model and the keyword targeting technology, the sponsored system runs online auctions to determine the allocations and prices of search advertisements. In the traditional setting, advertisers should manually create lots of ad creatives and bid on some relevant keywords to target their audience. Due to the huge amount of search traffic and a wide variety of ad creations, the limits of manual optimizations from advertisers become the main bottleneck for improving the efficiency of this market. Moreover, as many emerging advertising forms and supplies are growing, it's crucial for sponsored search platform to pay more attention to the ROI metrics of ads for getting the marketing budgets of advertisers.In this paper, we present the AiAds system developed at Baidu, which use machine learning techniques to build an automated and intelligent advertising system. By designing and implementing the automated bidding strategy, the intelligent targeting and the intelligent creation models, the AiAds system can transform the manual optimizations into multiple automated tasks and optimize these tasks in advanced methods. AiAds is a brand-new architecture of sponsored search system which changes the bidding language and allocation mechanism, breaks the limit of keyword targeting with end-to-end ad retrieval framework and provides global optimization of ad creation. This system can increase the advertiser's campaign performance, the user experience and the revenue of the advertising platform simultaneously and significantly. We present the overall architecture and modeling techniques for each module of the system and share our lessons learned in solving several key challenges. Finally, online A/B test and long-term grouping experiment demonstrate the advancement and effectiveness of this system. CCS CONCEPTS• Information systems → Sponsored search advertising; Computational advertising.

Mechanism Design for Ad Auctions with Display Prices

“…Some of them focus on studying the theoretical properties of the deployed ad auctions [6,24,26], while some others are devoted to design new auction mechanisms towards different scenarios and objectives [15,16,8]. With the development of AI, it is even possible to design ad auctions automately [1,23,27], based on advanced machine learning techniques and massive transaction data. To the best of our knowledge, Castiglioni et al [2] is the very first to study ad auctions with display prices.…”