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Main Authors: Sun, Haoran, Song, Xinrui, Zhang, Xinyu, Chen, Zhaohua, Chu, Xu, Zhang, Zhilin, Yu, Chuan, Xu, Jian, Zheng, Bo, Deng, Xiaotie
Format: Preprint
Published: 2026
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Online Access:https://arxiv.org/abs/2605.16474
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author Sun, Haoran
Song, Xinrui
Zhang, Xinyu
Chen, Zhaohua
Chu, Xu
Zhang, Zhilin
Yu, Chuan
Xu, Jian
Zheng, Bo
Deng, Xiaotie
author_facet Sun, Haoran
Song, Xinrui
Zhang, Xinyu
Chen, Zhaohua
Chu, Xu
Zhang, Zhilin
Yu, Chuan
Xu, Jian
Zheng, Bo
Deng, Xiaotie
contents The integration of advertising auction mechanisms into large language model (LLM)-based chatbots presents a significant opportunity for commercialization, yet poses unique challenges in balancing relevance, efficiency, and user experience. Recently, Feizi et al.~\citep{feizi2023online} and Hajiaghayi et al.~\citep{hajiaghayi2024ad} outlined a retrieve-then-generate paradigm that decouples retrieval and generation, offering lightweight ad insertion and payment determination. However, current retrieval relies solely on text embedding similarity, which may lead to commercial misinterpretation and issues such as repetitive insertions. In this paper, we propose LERA, a two-stage retrieve-then-generate auction framework tailored for LLM chatbots. In the first stage, embedding-based coarse filtering pre-selects a small set of candidate advertisers. In the second stage, the LLM itself is queried with a carefully designed prompt to produce logits over candidates, which serve as refined organic relevance scores. These scores are combined with bids, and a critical-value payment rule accounts for both the coarse-filtering and fine-ranking thresholds, ensuring truthfulness for utility-maximizing advertisers. The framework naturally extends to multiple ad insertions within dynamic dialogue flows and long responses. Experiments on a synthetic advertiser-query benchmark show that LERA substantially improves ad selection accuracy and insertion diversity while incurring only controllable latency overhead.
format Preprint
id arxiv_https___arxiv_org_abs_2605_16474
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle LERA: LLM-Enhanced RAG for Ad Auction in Generative Chatbots
Sun, Haoran
Song, Xinrui
Zhang, Xinyu
Chen, Zhaohua
Chu, Xu
Zhang, Zhilin
Yu, Chuan
Xu, Jian
Zheng, Bo
Deng, Xiaotie
Information Retrieval
Artificial Intelligence
The integration of advertising auction mechanisms into large language model (LLM)-based chatbots presents a significant opportunity for commercialization, yet poses unique challenges in balancing relevance, efficiency, and user experience. Recently, Feizi et al.~\citep{feizi2023online} and Hajiaghayi et al.~\citep{hajiaghayi2024ad} outlined a retrieve-then-generate paradigm that decouples retrieval and generation, offering lightweight ad insertion and payment determination. However, current retrieval relies solely on text embedding similarity, which may lead to commercial misinterpretation and issues such as repetitive insertions. In this paper, we propose LERA, a two-stage retrieve-then-generate auction framework tailored for LLM chatbots. In the first stage, embedding-based coarse filtering pre-selects a small set of candidate advertisers. In the second stage, the LLM itself is queried with a carefully designed prompt to produce logits over candidates, which serve as refined organic relevance scores. These scores are combined with bids, and a critical-value payment rule accounts for both the coarse-filtering and fine-ranking thresholds, ensuring truthfulness for utility-maximizing advertisers. The framework naturally extends to multiple ad insertions within dynamic dialogue flows and long responses. Experiments on a synthetic advertiser-query benchmark show that LERA substantially improves ad selection accuracy and insertion diversity while incurring only controllable latency overhead.
title LERA: LLM-Enhanced RAG for Ad Auction in Generative Chatbots
topic Information Retrieval
Artificial Intelligence
url https://arxiv.org/abs/2605.16474