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LLM-Auction: Generative Auction towards LLM-Native Advertising

6 Pith papers cite this work. Polarity classification is still indexing.

6 Pith papers citing it
abstract

The commercialization of LLM applications is the next frontier in online advertising, with LLM-native advertising emerging as a promising paradigm by integrating ads into LLM-generated content. However, classic mechanisms are no longer applicable in this setting where the auction object is shifted from discrete ad slots to distributions over LLM outputs, and existing methods are impractical in industrial scenarios due to ignored externalities or high inference costs. To address these issues, we propose LLM-Auction, the first learning-based generative auction mechanism that integrates auction and generation. By formulating the allocation as preference alignment between LLM outputs and a mechanism objective that balances advertisers' value and user experience, we optimize the LLMs to inherently model allocation externalities without extra inference cost. Theoretically, we identify the allocation monotonicity and continuity of LLM-Auction, and prove that a simple first-price payment rule exhibits favorable incentive properties. Furthermore, we build an LLM-as-a-judge simulation environment for quantitative evaluation, and experiments demonstrate that LLM-Auction achieves the state-of-the-art allocation efficiency while satisfying key mechanism properties.

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2026 6

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representative citing papers

NaiAD: Initiate Data-Driven Research for LLM Advertising

cs.LG · 2026-05-11 · unverdicted · novelty 7.0

NaiAD is a new dataset and framework for LLM-native advertising that uses decoupled generation and calibrated scoring to identify four semantic strategies for balancing user and commercial utilities.

LLM Advertisement based on Neuron Auctions

cs.LG · 2026-05-08 · unverdicted · novelty 7.0

Neuron Auctions auction continuous neuron intervention budgets on brand-specific orthogonal subspaces in LLMs to achieve strategy-proof revenue optimization while penalizing user utility loss.

LERA: LLM-Enhanced RAG for Ad Auction in Generative Chatbots

cs.IR · 2026-05-15 · unverdicted · novelty 5.0

LERA is a retrieve-then-generate auction system that refines ad candidate ranking with LLM logits and applies a threshold-aware critical-value payment rule to maintain truthfulness in chatbot ad insertion.

citing papers explorer

Showing 6 of 6 citing papers.

  • NaiAD: Initiate Data-Driven Research for LLM Advertising cs.LG · 2026-05-11 · unverdicted · none · ref 43 · internal anchor

    NaiAD is a new dataset and framework for LLM-native advertising that uses decoupled generation and calibrated scoring to identify four semantic strategies for balancing user and commercial utilities.

  • LLM Advertisement based on Neuron Auctions cs.LG · 2026-05-08 · unverdicted · none · ref 31 · internal anchor

    Neuron Auctions auction continuous neuron intervention budgets on brand-specific orthogonal subspaces in LLMs to achieve strategy-proof revenue optimization while penalizing user utility loss.

  • On the Role of Language Representations in Auto-Bidding: Findings and Implications cs.AI · 2026-05-07 · unverdicted · none · ref 42 · internal anchor

    SemBid injects LLM-encoded Task, History, and Strategy semantics as tokens into offline bidding trajectories and uses self-attention to outperform numerical-only baselines in performance, constraint satisfaction, and robustness.

  • UniVA: Unified Value Alignment for Generative Recommendation in Online Advertising at Tencent cs.IR · 2026-05-07 · conditional · none · ref 28 · internal anchor

    Injecting commercial value into Semantic ID construction, autoregressive decoding, and online beam search improves generative advertising recommendation, with reported offline HR@100 +37.04% and online GMV +1.5%.

  • Generative AI Advertising as a Problem of Trustworthy Commercial Intervention cs.CY · 2026-05-18 · unverdicted · none · ref 55 · internal anchor

    Generative AI advertising is reframed as a problem of trustworthy commercial intervention on the generative process, with a taxonomy of influence tiers from product mentions to long-term preference shaping.

  • LERA: LLM-Enhanced RAG for Ad Auction in Generative Chatbots cs.IR · 2026-05-15 · unverdicted · none · ref 33 · internal anchor

    LERA is a retrieve-then-generate auction system that refines ad candidate ranking with LLM logits and applies a threshold-aware critical-value payment rule to maintain truthfulness in chatbot ad insertion.