Optimal Auction Design in the Joint Advertising

Fuente: arXiv
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Auteurs principaux: Li, Yang, Ma, Yuchao, Qi, Qi
Format: Preprint
Publié: 2025
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author Li, Yang
Ma, Yuchao
Qi, Qi
author_facet Li, Yang
Ma, Yuchao
Qi, Qi
contents Online advertising is a vital revenue source for major internet platforms. Recently, joint advertising, which assigns a bundle of two advertisers in an ad slot instead of allocating a single advertiser, has emerged as an effective method for enhancing allocation efficiency and revenue. However, existing mechanisms for joint advertising fail to realize the optimality, as they tend to focus on individual advertisers and overlook bundle structures. This paper identifies an optimal mechanism for joint advertising in a single-slot setting. For multi-slot joint advertising, we propose \textbf{BundleNet}, a novel bundle-based neural network approach specifically designed for joint advertising. Our extensive experiments demonstrate that the mechanisms generated by \textbf{BundleNet} approximate the theoretical analysis results in the single-slot setting and achieve state-of-the-art performance in the multi-slot setting. This significantly increases platform revenue while ensuring approximate dominant strategy incentive compatibility and individual rationality.
format Preprint
id arxiv_https___arxiv_org_abs_2507_07418
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Optimal Auction Design in the Joint Advertising
Li, Yang
Ma, Yuchao
Qi, Qi
Computer Science and Game Theory
Artificial Intelligence
Online advertising is a vital revenue source for major internet platforms. Recently, joint advertising, which assigns a bundle of two advertisers in an ad slot instead of allocating a single advertiser, has emerged as an effective method for enhancing allocation efficiency and revenue. However, existing mechanisms for joint advertising fail to realize the optimality, as they tend to focus on individual advertisers and overlook bundle structures. This paper identifies an optimal mechanism for joint advertising in a single-slot setting. For multi-slot joint advertising, we propose \textbf{BundleNet}, a novel bundle-based neural network approach specifically designed for joint advertising. Our extensive experiments demonstrate that the mechanisms generated by \textbf{BundleNet} approximate the theoretical analysis results in the single-slot setting and achieve state-of-the-art performance in the multi-slot setting. This significantly increases platform revenue while ensuring approximate dominant strategy incentive compatibility and individual rationality.
title Optimal Auction Design in the Joint Advertising
topic Computer Science and Game Theory
Artificial Intelligence
url https://arxiv.org/abs/2507.07418