pith. sign in

arxiv: 2510.15238 · v2 · pith:TOUFLVK2new · submitted 2025-10-17 · 💻 cs.GT · cs.IR· cs.LG

HOB: A Holistically Optimized Bidding Strategy under Heterogeneous Bidding Environments

classification 💻 cs.GT cs.IRcs.LG
keywords biddingchannelsacrossheterogeneousadvertisingauctionsconstraintsdelivers
0
0 comments X
read the original abstract

Optimizing a single advertising campaign across heterogeneous channels is a central challenge in industrial autobidding. Auction mechanisms vary across channels in ranking rules (pure eCPM vs. UE-augmented scoring), pricing formats (first- vs. second-price), and bidding conventions (uniform vs. non-uniform), while advertisers impose shared campaign-level constraints. We propose HOB, which makes marginal cost (MC) computable and alignable across heterogeneous channels, especially for first-price auctions (FPA) with organic-paid coexistence, where existing bidding formulations do not yield a practical aligned MC form. At the global level, HOB derives channel-specific MC forms and coordinates disparate channels through a shared MC target. At the local level, HOB models free-win probability and winning-price uncertainty with a zero-inflated exponential distribution, yielding an efficient surplus-optimal bidding strategy for non-uniform first-price auctions. We show that any interior optimum satisfies MC equalization across channels. Experiments on a controlled offline benchmark, industrial log replay, and large-scale online A/B tests demonstrate that HOB consistently delivers significant performance gains. Deployed on a large-scale commercial DSP, HOB delivers a 3.0% lift in GMV while maintaining return on advertising spend (ROAS) constraints.

This paper has not been read by Pith yet.

discussion (0)

Sign in with ORCID, Apple, or X to comment. Anyone can read and Pith papers without signing in.