Weinan Zhang

Optimal real-time bidding for display advertising

In this paper we study bid optimisation for real-time bidding (RTB) based display advertising. RTB allows advertisers to bid on a display ad impression in real time when it is being generated. It goes beyond contextual advertising by motivating the bidding focused on user data and it is different from the sponsored search auction where the bid price is associated with keywords. For the demand side, a fundamental technical challenge is to automate the bidding process based on the budget, the campaign objective and various information gathered in runtime and in history. In this paper, the programmatic bidding is cast as a functional optimisation problem. Under certain dependency assumptions, we derive simple bidding functions that can be calculated in real time; our finding shows that the optimal bid has a non-linear relationship with the impression level evaluation such as the click-through rate and the conversion rate, which are estimated in real time from the impression level features. This is different from previous work that is mainly focused on a linear bidding function. Our mathematical derivation suggests that optimal bidding strategies should try to bid more impressions rather than focus on a small set of high valued impressions because according to the current RTB market data, compared to the higher evaluated impressions, the lower evaluated ones are more cost effective and the chances of winning them are relatively higher. Aside from the theoretical insights, offline experiments on a real dataset and online experiments on a production RTB system verify the effectiveness of our proposed optimal bidding strategies and the functional optimisation framework.

IRGAN: A Minimax Game for Unifying Generative and Discriminative Information Retrieval Models

This paper provides a unified account of two schools of thinking in information retrieval modelling: the generative retrieval focusing on predicting relevant documents given a query, and the discriminative retrieval focusing on predicting relevancy given a query-document pair. We propose a game theoretical minimax game to iteratively optimise both models. On one hand, the discriminative model, aiming to mine signals from labelled and unlabelled data, provides guidance to train the generative model towards fitting the underlying relevance distribution over documents given the query. On the other hand, the generative model, acting as an attacker to the current discriminative model, generates difficult examples for the discriminative model in an adversarial way by minimising its discrimination objective. With the competition between these two models, we show that the unified framework takes advantage of both schools of thinking: (i) the generative model learns to fit the relevance distribution over documents via the signals from the discriminative model, and (ii) the discriminative model is able to exploit the unlabelled data selected by the generative model to achieve a better estimation for document ranking. Our experimental results have demonstrated significant performance gains as much as 23.96% on Precision@5 and 15.50% on MAP over strong baselines in a variety of applications including web search, item recommendation, and question answering.

Display Advertising with Real-Time Bidding (RTB) and Behavioural Targeting

Online advertising is now one of the fastest advancing areas in the IT industry. In display and mobile advertising, the most significant technical development in recent years is the growth of Real-Time Bidding (RTB), which facilitates a real-time auction for a display opportunity. RTB essentially facilitates buying an individual ad impression in real time while it is still being generated from a users visit. RTB not only scales up the buying process by aggregating a large number of available inventories across publishers but, most importantly, enables direct targeting of individual users. As such, RTB has fundamentally changed the landscape of digital marketing. Scientifically, the demand for automation, integration and optimization in RTB also brings new research opportunities in information retrieval, data mining, machine learning and other related fields. Despite its rapid growth and huge potential, many aspects of RTB remain unknown to the research community for a variety of reasons. This monograph offers insightful knowledge of real-world systems, to bridge the gaps between industry and academia, and to provide an overview of the fundamental infrastructure, algorithms, and technical and research challenges of the new frontier of computational advertising. The topics covered include user response prediction, bid landscape forecasting, bidding algorithms, revenue optimization, statistical arbitrage, dynamic pricing, and ad fraud detection. This is an invaluable text for researchers and practitioners alike. Academic researchers will get a better understanding of the real-time online advertising systems currently deployed in industry. While industry practitioners are introduced to the research challenges, the state of the art algorithms and potential future systems in this field.

Joint optimization of bid and budget allocation in sponsored search

This paper is concerned with the joint allocation of bid price and campaign budget in sponsored search. In this application, an advertiser can create a number of campaigns and set a budget for each of them. In a campaign, he/she can further create several ad groups with bid keywords and bid prices. Data analysis shows that many advertisers are dealing with a very large number of campaigns, bid keywords, and bid prices at the same time, which poses a great challenge to the optimality of their campaign management. As a result, the budgets of some campaigns might be too low to achieve the desired performance goals while those of some other campaigns might be wasted; the bid prices for some keywords may be too low to win competitive auctions while those of some other keywords may be unnecessarily high. In this paper, we propose a novel algorithm to automatically address this issue. In particular, we model the problem as a constrained optimization problem, which maximizes the expected advertiser revenue subject to the constraints of the total budget of the advertiser and the ranges of bid price change. By solving this optimization problem, we can obtain an optimal budget allocation plan as well as an optimal bid price setting. Our simulation results based on the sponsored search log of a commercial search engine have shown that by employing the proposed method, we can effectively improve the performances of the advertisers while at the same time we also see an increase in the revenue of the search engine. In addition, the results indicate that this method is robust to the second-order effects caused by the bid fluctuations from other advertisers.

To personalize or not: a risk management perspective

Personalization techniques have been widely adopted in many recommender systems. However, experiments on real-world datasets show that for some users in certain contexts, personalized recommendations do not necessarily perform better than recommendations that rely purely on popularity. Broadly, this can be interpreted by the fact that the parameters of a personalization model are usually estimated from sparse data; the resulting personalized prediction, despite of its low bias, is often volatile. In this paper, we study the problem further by investigating into the ranking of recommendation lists. From a risk management and portfolio retrieval perspective, there is no difference between the popularity-based and the personalized ranking as both of the recommendation outputs can be represented as the trade-off between expected relevance (reward) and associated uncertainty (risk). Through our analysis, we discover common scenarios and provide a technique to predict whether personalization will fail. Besides the theoretical understanding, our experimental results show that the resulting switch algorithm, which decides whether or not to personalize, outperforms the mainstream recommendation algorithms.

Real-Time Bidding by Reinforcement Learning in Display Advertising

The majority of online display ads are served through real-time bidding (RTB) --- each ad display impression is auctioned off in real-time when it is just being generated from a user visit. To place an ad automatically and optimally, it is critical for advertisers to devise a learning algorithm to cleverly bid an ad impression in real-time. Most previous works consider the bid decision as a static optimization problem of either treating the value of each impression independently or setting a bid price to each segment of ad volume. However, the bidding for a given ad campaign would repeatedly happen during its life span before the budget runs out. As such, each bid is strategically correlated by the constrained budget and the overall effectiveness of the campaign (e.g., the rewards from generated clicks), which is only observed after the campaign has completed. Thus, it is of great interest to devise an optimal bidding strategy sequentially so that the campaign budget can be dynamically allocated across all the available impressions on the basis of both the immediate and future rewards. In this paper, we formulate the bid decision process as a reinforcement learning problem, where the state space is represented by the auction information and the campaigns real-time parameters, while an action is the bid price to set. By modeling the state transition via auction competition, we build a Markov Decision Process framework for learning the optimal bidding policy to optimize the advertising performance in the dynamic real-time bidding environment. Furthermore, the scalability problem from the large real-world auction volume and campaign budget is well handled by state value approximation using neural networks. The empirical study on two large-scale real-world datasets and the live A/B testing on a commercial platform have demonstrated the superior performance and high efficiency compared to state-of-the-art methods.

Annotating Needles in the Haystack without Looking: Product Information Extraction from Emails

Business-to-consumer (B2C) emails are usually generated by filling structured user data (e.g.purchase, event) into templates. Extracting structured data from B2C emails allows users to track important information on various devices. However, it also poses several challenges, due to the requirement of short response time for massive data volume, the diversity and complexity of templates, and the privacy and legal constraints. Most notably, email data is legally protected content, which means no one except the receiver can review the messages or derived information. In this paper we first introduce a system which can extract structured information automatically without requiring human review of any personal content. Then we focus on how to annotate product names from the extracted texts, which is one of the most difficult problems in the system. Neither general learning methods, such as binary classifiers, nor more specific structure learning methods, suchas Conditional Random Field (CRF), can solve this problem well. To accomplish this task, we propose a hybrid approach, which basically trains a CRF model using the labels predicted by binary classifiers (weak learners). However, the performance of weak learners can be low, therefore we use Expectation Maximization (EM) algorithm on CRF to remove the noise and improve the accuracy, without the need to label and inspect specific emails. In our experiments, the EM-CRF model can significantly improve the product name annotations over the weak learners and plain CRFs.

Bid keyword suggestion in sponsored search based on competitiveness and relevance

Abstract In sponsored search, many advertisers have not achieved their expected performances while the search engine also has a large room to improve their revenue. Specifically, due to the improper keyword bidding, many advertisers cannot survive the competitive ad auctions to get their desired ad impressions; meanwhile, a significant portion of search queries have no ads displayed in their search result pages, even if many of them have commercial values. We propose recommending a group of relevant yet less-competitive keywords to an advertiser. Hence, the advertiser can get the chance to win some (originally empty) ad slots and accumulate a number of impressions. At the same time, the revenue of the search engine can also be boosted since many empty ad shots are filled. Mathematically, we model the problem as a mixed integer programming problem, which maximizes the advertiser revenue and the relevance of the recommended keywords, while minimizing the keyword competitiveness, subject to the bid and budget constraints. By solving the problem, we can offer an optimal group of keywords and their optimal bid prices to an advertiser. Simulation results have shown the proposed method is highly effective in increasing ad impressions, expected clicks, advertiser revenue, and search engine revenue.

LambdaFM: Learning Optimal Ranking with Factorization Machines Using Lambda Surrogates

State-of-the-art item recommendation algorithms, which apply Factorization Machines (FM) as a scoring function and pairwise ranking loss as a trainer (PRFM for short), have been recently investigated for the implicit feedback based context-aware recommendation problem (IFCAR). However, good recommenders particularly emphasize on the accuracy near the top of the ranked list, and typical pairwise loss functions might not match well with such a requirement. In this paper, we demonstrate, both theoretically and empirically, PRFM models usually lead to non-optimal item recommendation results due to such a mismatch. Inspired by the success of LambdaRank, we introduce Lambda Factorization Machines (LambdaFM), which is particularly intended for optimizing ranking performance for IFCAR. We also point out that the original lambda function suffers from the issue of expensive computational complexity in such settings due to a large amount of unobserved feedback. Hence, instead of directly adopting the original lambda strategy, we create three effective lambda surrogates by conducting a theoretical analysis for lambda from the top-N optimization perspective. Further, we prove that the proposed lambda surrogates are generic and applicable to a large set of pairwise ranking loss functions. Experimental results demonstrate LambdaFM significantly outperforms state-of-the-art algorithms on three real-world datasets in terms of four standard ranking measures.

Unsupervised Diverse Colorization via Generative Adversarial Networks

Colorization of grayscale images is a hot topic in computer vision. Previous research mainly focuses on producing a color image to recover the original one in a supervised learning fashion. However, since many colors share the same gray value, an input grayscale image could be diversely colorized while maintaining its reality. In this paper, we design a novel solution for unsupervised diverse colorization. Specifically, we leverage conditional generative adversarial networks to model the distribution of real-world item colors, in which we develop a fully convolutional generator with multi-layer noise to enhance diversity, with multi-layer condition concatenation to maintain reality, and with stride 1 to keep spatial information. With such a novel network architecture, the model yields highly competitive performance on the open LSUN bedroom dataset. The Turing test on 80 humans further indicates our generated color schemes are highly convincible.