DeepAI AI Chat
Log In Sign Up

Incentive Mechanism Design for ROI-constrained Auto-bidding

by   Bin Li, et al.

Auto-bidding plays an important role in online advertising and has become a crucial tool for advertisers and advertising platforms to meet their performance objectives and optimize the efficiency of ad delivery. Advertisers employing auto-bidding only need to express high-level goals and constraints, and leave the bid optimization problem to the advertising platforms. As auto-bidding has obviously changed the bidding language and the way advertisers participate in the ad auction, fundamental investigation into mechanism design for auto-bidding environment should be made to study the interaction of auto-bidding with advertisers. In this paper, we formulate the general problem of incentive mechanism design for ROI-constrained auto-bidding, and carry out analysis of strategy-proof requirements for the revenue-maximizing and profit-maximizing advertisers. In addition, we provide a mechanism framework and a practical solution to guarantee the incentive property for different types of advertisers.


page 1

page 2

page 3

page 4


Designing Ad Auctions with Private Constraints for Automated Bidding

In online advertising, automated bidding (auto-bidding) has become a wid...

Characterization of Incentive Compatibility of an Ex-Ante Constrained Player

We consider a variant of the standard Bayesian mechanism, where players ...

Towards Efficient Auctions in an Auto-bidding World

Auto-bidding has become one of the main options for bidding in online ad...

Fair Online Advertising

Online advertising platforms are thriving due to the customizable audien...

Incentive Compatibility in the Auto-bidding World

Auto-bidding has recently become a popular feature in ad auctions. This ...

The Power of Media Agencies in Ad Auctions: Improving Utility through Coordinated Bidding

The increasing competition in digital advertising induced a proliferatio...

A Cooperative-Competitive Multi-Agent Framework for Auto-bidding in Online Advertising

In online advertising, auto-bidding has become an essential tool for adv...