Optimized Cost per Click in Taobao Display Advertising
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Abstract (arXiv)
Taobao, as the largest online retail platform in the world, provides billions of online display advertising impressions for millions of advertisers every day. For commercial purposes, the advertisers bid for specific spots and target crowds to compete for business traffic. The platform chooses the most suitable ads to display in tens of milliseconds. Common pricing methods include cost per mille (CPM) and cost per click (CPC). Traditional advertising systems target certain traits of users and ad placements with fixed bids, essentially regarded as coarse-grained matching of bid and traffic quality. However, the fixed bids set by the advertisers competing for different quality requests cannot fully optimize the advertisers' key requirements. Moreover, the platform has to be responsible for the business revenue and user experience. Thus, we proposed a bid optimizing strategy called optimized cost per click (OCPC) which automatically adjusts the bid to achieve finer matching of bid and traffic quality of page view (PV) request granularity. Our approach optimizes advertisers' demands, platform business revenue and user experience and as a whole improves traffic allocation efficiency. We have validated our approach in Taobao display advertising system in production. The online A/B test shows our algorithm yields substantially better results than previous fixed bid manner.
Key facts. Cited by 57 papers in the map (data through 7 Oct 2026). First posted on arXiv 27 Feb 2017.
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Citing papers per year: 2021: 8; 2022: 11; 2023: 8; 2024: 10; 2025: 10; 2026: 10.
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- 2021One Model to Serve All: Star Topology Adaptive Recommender for Multi-Domain CTR Predictioncited by 78
- 2021Neural Auction: End-to-End Learning of Auction Mechanisms for E-Commerce Advertisingcited by 31
- 2024Enhancing Taobao Display Advertising with Multimodal Representations: Challenges, Approaches and Insightscited by 23
- 2022Joint Optimization of Ranking and Calibration with Contextualized Hybrid Modelcited by 22
- 2021Hierarchically Modeling Micro and Macro Behaviors via Multi-Task Learning for Conversion Rate Predictioncited by 21
- 2023Could Small Language Models Serve as Recommenders? Towards Data-centric Cold-start Recommendationscited by 15
- 2022Vertical Semi-Federated Learning for Efficient Online Advertisingcited by 12
- 2022KEEP: An Industrial Pre-Training Framework for Online Recommendation via Knowledge Extraction and Pluggingcited by 11
- 2022Challenges and approaches to privacy preserving post-click conversion predictioncited by 10
- 2023Natural Language Generation for Advertising: A Surveycited by 10
- 2024An Automatic Graph Construction Framework based on Large Language Models for Recommendationcited by 8
- 2021Multi-Agent Cooperative Bidding Games for Multi-Objective Optimization in e-Commercial Sponsored Searchcited by 7
38 more
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- 2021We Know What You Want: An Advertising Strategy Recommender System for Online Advertisingcited by 5
- 2021Online Advertising Revenue Forecasting: An Interpretable Deep Learning Approachcited by 5
- 2023Counterfactual Monotonic Knowledge Tracing for Assessing Students' Dynamic Mastery of Knowledge Conceptscited by 5
- 2025See Beyond a Single View: Multi-Attribution Learning Leads to Better Conversion Rate Predictioncited by 5
- 2025Generative Auto-Bidding in Large-Scale Competitive Auctions via Diffusion Completer-Alignercited by 5
- 2023HiBid: A Cross-Channel Constrained Bidding System with Budget Allocation by Hierarchical Offline Deep Reinforcement Learningcited by 4
- 2024Deep Ensemble Shape Calibration: Multi-Field Post-hoc Calibration in Online Advertisingcited by 4
- 2024Retrievable Domain-Sensitive Feature Memory for Multi-Domain Recommendationcited by 4
- 2025Relative Advantage Debiasing for Watch-Time Prediction in Short-Video Recommendationcited by 4
- 2021Truncation-Free Matching System for Display Advertising at Alibabacited by 3
- 2024Masked Multi-Domain Network: Multi-Type and Multi-Scenario Conversion Rate Prediction with a Single Modelcited by 3
- 2022On-Device Model Fine-Tuning with Label Correction in Recommender Systemscited by 2
- 2023Enhancing Personalized Ranking With Differentiable Group AUC Optimizationcited by 2
- 2023Graph Based Long-Term And Short-Term Interest Model for Click-Through Rate Predictioncited by 2
- 2023Contrastive Learning for Conversion Rate Predictioncited by 2
- 2024UnifiedRL: A Reinforcement Learning Algorithm Tailored for Multi-Task Fusion in Large-Scale Recommender Systemscited by 2
- 2024Multi-Task Combinatorial Bandits for Budget Allocationcited by 2
- 2025Collaborative Learning of On-Device Small Model and Cloud-Based Large Model: Advances and Future Directionscited by 2
- 2025Are We Really Measuring Progress? Transferring Insights from Evaluating Recommender Systems to Temporal Link Predictioncited by 2
- 2026Delayed Feedback Modeling for Post-Click Gross Merchandise Volume Prediction: Benchmark, Insights and Approachescited by 2
- 2026AGPO: Asymmetric Group Policy Optimization for Verifiable Reasoning and Search Ads Relevance at JDcited by 2
- 2021A General Framework for Debiasing in CTR Predictioncited by 1
- 2022Do not Waste Money on Advertising Spend: Bid Recommendation via Concavity Changescited by 1
- 2025Lightweight Auto-bidding based on Traffic Prediction in Live Advertisingcited by 1
- 2025Autobidding Arena: unified evaluation of the classical and RL-based autobidding algorithmscited by 1
- 2025Bid2X: Revealing Dynamics of Bidding Environment in Online Advertising from A Foundation Model Lenscited by 1
- 2026PRO-Bid: Pareto-Prioritized Regret Optimization for Constraint-Aware Generative Auto-Biddingcited by 1
- 2026PlatformBid: An Auto-Bidding Benchmark from a Unified Advertising Platform's Perspectivecited by 1
- 2022A Unified Framework for Campaign Performance Forecasting in Online Display Advertisingcited by 0
- 2022An Analysis of Selection Bias Issue for Online Advertisingcited by 0
- 2022Functional Optimization Reinforcement Learning for Real-Time Biddingcited by 0
- 2022Demystifying Advertising Campaign Bid Recommendation: A Constraint target CPA Goal Optimizationcited by 0
- 2023COUPA: An Industrial Recommender System for Online to Offline Service Platformscited by 0
- 2024Calibration-then-Calculation: A Variance Reduced Metric Framework in Deep Click-Through Rate Prediction Modelscited by 0
- 2024EnhancedRL: An Enhanced-State Reinforcement Learning Algorithm for Multi-Task Fusion in Recommender Systemscited by 0
- 2025Bidding-Aware Retrieval for Multi-Stage Consistency in Online Advertisingcited by 0
50 most cited of 57 All 57 (JSON)
- 2026OneBid: A Unified Auto-Bidding Foundation Model for Diverse oCPX Advertising Scenarios18 Sep 2026
- 2026Decoupled Temporal Encoding for Generative Recommendation17 Aug 2026
- 2026PlatformBid: An Auto-Bidding Benchmark from a Unified Advertising Platform's Perspective29 Jul 2026
- 2026TWICE: Two-Clock, Two-Window Learning for Long-Horizon Conversion Prediction in Online Advertising28 Jul 2026
- 2026Beyond Single-Episode Optimization: Sliding-Window Aware Generative Auto-Bidding for Long-Term Advertising Effectiveness28 Jul 2026
- 2026MMRM: A Multiplex Multimodal Representation Model for Product Ranking in E-commerce Search13 Jul 2026
- 2026AGPO: Asymmetric Group Policy Optimization for Verifiable Reasoning and Search Ads Relevance at JD7 May 2026
- 2026PRO-Bid: Pareto-Prioritized Regret Optimization for Constraint-Aware Generative Auto-Bidding9 Feb 2026
- 2026Statistical Learning from Attribution Sets6 Feb 2026
- 2026Delayed Feedback Modeling for Post-Click Gross Merchandise Volume Prediction: Benchmark, Insights and Approaches28 Jan 2026
- 2025No One Left Behind: How to Exploit the Incomplete and Skewed Multi-Label Data for Conversion Rate Prediction15 Dec 2025
- 2025Bid2X: Revealing Dynamics of Bidding Environment in Online Advertising from A Foundation Model Lens27 Oct 2025
38 more
- 2025Autobidding Arena: unified evaluation of the classical and RL-based autobidding algorithms22 Oct 2025
- 2025Generative Auto-Bidding in Large-Scale Competitive Auctions via Diffusion Completer-Aligner3 Sep 2025
- 2025See Beyond a Single View: Multi-Attribution Learning Leads to Better Conversion Rate Prediction21 Aug 2025
- 2025Relative Advantage Debiasing for Watch-Time Prediction in Short-Video Recommendation14 Aug 2025
- 2025Lightweight Auto-bidding based on Traffic Prediction in Live Advertising8 Aug 2025
- 2025Bidding-Aware Retrieval for Multi-Stage Consistency in Online Advertising7 Aug 2025
- 2025Are We Really Measuring Progress? Transferring Insights from Evaluating Recommender Systems to Temporal Link Prediction14 Jun 2025
- 2025Collaborative Learning of On-Device Small Model and Cloud-Based Large Model: Advances and Future Directions17 Apr 2025
- 2024An Automatic Graph Construction Framework based on Large Language Models for Recommendation24 Dec 2024
- 2024EnhancedRL: An Enhanced-State Reinforcement Learning Algorithm for Multi-Task Fusion in Recommender Systems18 Sep 2024
- 2024Multi-Task Combinatorial Bandits for Budget Allocation31 Aug 2024
- 2024Enhancing Taobao Display Advertising with Multimodal Representations: Challenges, Approaches and Insights28 Jul 2024
- 2024Conditional Quantile Estimation for Uncertain Watch Time in Short-Video Recommendation17 Jul 2024
- 2024Retrievable Domain-Sensitive Feature Memory for Multi-Domain Recommendation21 May 2024
- 2024UnifiedRL: A Reinforcement Learning Algorithm Tailored for Multi-Task Fusion in Large-Scale Recommender Systems19 Apr 2024
- 2024Masked Multi-Domain Network: Multi-Type and Multi-Scenario Conversion Rate Prediction with a Single Model26 Mar 2024
- 2024Calibration-then-Calculation: A Variance Reduced Metric Framework in Deep Click-Through Rate Prediction Models30 Jan 2024
- 2024Deep Ensemble Shape Calibration: Multi-Field Post-hoc Calibration in Online Advertising17 Jan 2024
- 2023HiBid: A Cross-Channel Constrained Bidding System with Budget Allocation by Hierarchical Offline Deep Reinforcement Learning29 Dec 2023
- 2023Counterfactual Monotonic Knowledge Tracing for Assessing Students' Dynamic Mastery of Knowledge Concepts7 Aug 2023
- 2023Contrastive Learning for Conversion Rate Prediction12 Jul 2023
- 2023Could Small Language Models Serve as Recommenders? Towards Data-centric Cold-start Recommendations29 Jun 2023
- 2023Natural Language Generation for Advertising: A Survey22 Jun 2023
- 2023Graph Based Long-Term And Short-Term Interest Model for Click-Through Rate Prediction5 Jun 2023
- 2023COUPA: An Industrial Recommender System for Online to Offline Service Platforms25 Apr 2023
- 2023Enhancing Personalized Ranking With Differentiable Group AUC Optimization17 Apr 2023
- 2022Do not Waste Money on Advertising Spend: Bid Recommendation via Concavity Changes26 Dec 2022
- 2022Demystifying Advertising Campaign Bid Recommendation: A Constraint target CPA Goal Optimization26 Dec 2022
- 2022On-Device Model Fine-Tuning with Label Correction in Recommender Systems21 Oct 2022
- 2022Vertical Semi-Federated Learning for Efficient Online Advertising30 Sep 2022
- 2022KEEP: An Industrial Pre-Training Framework for Online Recommendation via Knowledge Extraction and Plugging22 Aug 2022
- 2022Joint Optimization of Ranking and Calibration with Contextualized Hybrid Model12 Aug 2022
- 2022Functional Optimization Reinforcement Learning for Real-Time Bidding25 Jun 2022
- 2022An Analysis of Selection Bias Issue for Online Advertising7 Jun 2022
- 2022Hierarchically Constrained Adaptive Ad Exposure in Feeds31 May 2022
- 2022A Unified Framework for Campaign Performance Forecasting in Online Display Advertising24 Feb 2022
- 2022Challenges and approaches to privacy preserving post-click conversion prediction29 Jan 2022
- 2021A General Framework for Debiasing in CTR Prediction6 Dec 2021
50 newest of 57 All 57 (JSON)
- 2023HiBid: A Cross-Channel Constrained Bidding System with Budget Allocation by Hierarchical Offline Deep Reinforcement Learningcited by 4
- 2024UnifiedRL: A Reinforcement Learning Algorithm Tailored for Multi-Task Fusion in Large-Scale Recommender Systemscited by 2
- 2026OneBid: A Unified Auto-Bidding Foundation Model for Diverse oCPX Advertising Scenarioscited by 0
- 2026OneBid: A Unified Auto-Bidding Foundation Model for Diverse oCPX Advertising Scenarios18 Sep 2026
- 2024UnifiedRL: A Reinforcement Learning Algorithm Tailored for Multi-Task Fusion in Large-Scale Recommender Systems19 Apr 2024
- 2023HiBid: A Cross-Channel Constrained Bidding System with Budget Allocation by Hierarchical Offline Deep Reinforcement Learning29 Dec 2023
- 2021One Model to Serve All: Star Topology Adaptive Recommender for Multi-Domain CTR Predictioncited by 78
- 2021Neural Auction: End-to-End Learning of Auction Mechanisms for E-Commerce Advertisingcited by 31
- 2024Enhancing Taobao Display Advertising with Multimodal Representations: Challenges, Approaches and Insightscited by 23
- 2022Joint Optimization of Ranking and Calibration with Contextualized Hybrid Modelcited by 22
- 2021Hierarchically Modeling Micro and Macro Behaviors via Multi-Task Learning for Conversion Rate Predictioncited by 21
- 2023Could Small Language Models Serve as Recommenders? Towards Data-centric Cold-start Recommendationscited by 15
- 2022Vertical Semi-Federated Learning for Efficient Online Advertisingcited by 12
- 2022KEEP: An Industrial Pre-Training Framework for Online Recommendation via Knowledge Extraction and Pluggingcited by 11
- 2022Challenges and approaches to privacy preserving post-click conversion predictioncited by 10
- 2023Natural Language Generation for Advertising: A Surveycited by 10
- 2024An Automatic Graph Construction Framework based on Large Language Models for Recommendationcited by 8
- 2021Multi-Agent Cooperative Bidding Games for Multi-Objective Optimization in e-Commercial Sponsored Searchcited by 7
12 most cited of 53 All 53 (JSON)
- 2026Decoupled Temporal Encoding for Generative Recommendation17 Aug 2026
- 2026PlatformBid: An Auto-Bidding Benchmark from a Unified Advertising Platform's Perspective29 Jul 2026
- 2026TWICE: Two-Clock, Two-Window Learning for Long-Horizon Conversion Prediction in Online Advertising28 Jul 2026
- 2026Beyond Single-Episode Optimization: Sliding-Window Aware Generative Auto-Bidding for Long-Term Advertising Effectiveness28 Jul 2026
- 2026MMRM: A Multiplex Multimodal Representation Model for Product Ranking in E-commerce Search13 Jul 2026
- 2026PRO-Bid: Pareto-Prioritized Regret Optimization for Constraint-Aware Generative Auto-Bidding9 Feb 2026
- 2026Statistical Learning from Attribution Sets6 Feb 2026
- 2026Delayed Feedback Modeling for Post-Click Gross Merchandise Volume Prediction: Benchmark, Insights and Approaches28 Jan 2026
- 2025No One Left Behind: How to Exploit the Incomplete and Skewed Multi-Label Data for Conversion Rate Prediction15 Dec 2025
- 2025Bid2X: Revealing Dynamics of Bidding Environment in Online Advertising from A Foundation Model Lens27 Oct 2025
- 2025Autobidding Arena: unified evaluation of the classical and RL-based autobidding algorithms22 Oct 2025
- 2025Generative Auto-Bidding in Large-Scale Competitive Auctions via Diffusion Completer-Aligner3 Sep 2025
12 newest of 53 All 53 (JSON)