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A practical framework of conversion rate prediction for online display advertising

  • Quan Lu
  • , Shengjun Pan
  • , Liang Wang
  • , Junwei Pan
  • , Fengdan Wan
  • , Hongxia Yang

Research output: Chapter in book / Conference proceedingConference article published in proceeding or bookAcademic researchpeer-review

Abstract

Cost-per-action (CPA), or cost-per-acquisition, has become the primary campaign performance objective in online advertising industry. As a result, accurate conversion rate (CVR) prediction is crucial for any real-time bidding (RTB) platform. However, CVR prediction is quite challenging due to several factors, including extremely sparse conversions, delayed feedback, attribution gaps between the platform and the third party, etc. In order to tackle these challenges, we proposed a practical framework that has been successfully deployed on Yahoo! BrightRoll, one of the largest RTB ad buying platforms. In this paper, we first show that over-prediction and the resulted over-bidding are fundamental challenges for CPA campaigns in a real RTB environment. We then propose a safe prediction framework with conversion attribution adjustment to handle over-predictions and to further alleviate over-bidding at different levels. At last, we illustrate both offline and online experimental results to demonstrate the effectiveness of the framework.

Original languageEnglish
Title of host publication2017 AdKDD and TargetAd - In conjunction with the 23rd ACM SIGKDD Conference on Knowledge Discovery and Data Mining, KDD 2017
PublisherAssociation for Computing Machinery, Inc
ISBN (Electronic)9781450351942
DOIs
Publication statusPublished - 14 Aug 2017
Externally publishedYes
EventAdKDD and TargetAd Workshop 2017 - Halifax, Canada
Duration: 14 Aug 2017 → …

Publication series

Name2017 AdKDD and TargetAd - In conjunction with the 23rd ACM SIGKDD Conference on Knowledge Discovery and Data Mining, KDD 2017

Conference

ConferenceAdKDD and TargetAd Workshop 2017
Country/TerritoryCanada
CityHalifax
Period14/08/17 → …

ASJC Scopus subject areas

  • Software

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