# E-Commerce Promotions Personalization via Online Multiple-Choice Knapsack with Uplift Modeling

arXiv: https://arxiv.org/abs/2108.13298 · HTML: https://mlsanity.com/paper/2108.13298/

## Key facts

- Cited by 21 papers in the map (data through 14 Oct 2026).
- Builds on 11 of its 44 references that are in the map.
- First posted on arXiv 11 Aug 2021.

## Builds on (most cited first, 11 of 11)

- [Meta-learners for Estimating Heterogeneous Treatment Effects using Machine Learning](https://mlsanity.com/paper/1706.03461/) (2017)
- [Causal Effect Inference with Deep Latent-Variable Models](https://mlsanity.com/paper/1705.08821/) (2017)
- [Learning Representations for Counterfactual Inference](https://mlsanity.com/paper/1605.03661/) (2016)
- [Bandits with Knapsacks](https://mlsanity.com/paper/1305.2545/) (2013)
- [A Unified Framework for Marketing Budget Allocation](https://mlsanity.com/paper/1902.01128/) (2019)
- [Uplift Modeling for Multiple Treatments with Cost Optimization](https://mlsanity.com/paper/1908.05372/) (2019)
- [Free Lunch! Retrospective Uplift Modeling for Dynamic Promotions Recommendation within ROI Constraints](https://mlsanity.com/paper/2008.06293/) (2020)
- [Spending Money Wisely: Online Electronic Coupon Allocation based on Real-Time User Intent Detection](https://mlsanity.com/paper/2008.09982/) (2020)
- [Cost-Effective Incentive Allocation via Structured Counterfactual Inference](https://mlsanity.com/paper/1902.02495/) (2019)
- [Democratizing online controlled experiments at Booking.com](https://mlsanity.com/paper/1710.08217/) (2017)
- [To do or not to do: cost-sensitive causal decision-making](https://mlsanity.com/paper/2101.01407/) (2021)

## Built on by (most cited first, 21 of 21)

- [Explicit Feature Interaction-aware Uplift Network for Online Marketing](https://mlsanity.com/paper/2306.00315/) (2023)
- [End-to-End Cost-Effective Incentive Recommendation under Budget Constraint with Uplift Modeling](https://mlsanity.com/paper/2408.11623/) (2024)
- [An End-to-End Framework for Marketing Effectiveness Optimization under Budget Constraint](https://mlsanity.com/paper/2302.04477/) (2023)
- [Decision Focused Causal Learning for Direct Counterfactual Marketing Optimization](https://mlsanity.com/paper/2407.13664/) (2024)
- [Uplift Modeling: from Causal Inference to Personalization](https://mlsanity.com/paper/2308.09066/) (2023)
- [Personalized Promotion Decision Making Based on Direct and Enduring Effect Predictions](https://mlsanity.com/paper/2207.14798/) (2022)
- [Maximizing the Success Probability of Policy Allocations in Online Systems](https://mlsanity.com/paper/2312.16267/) (2023)
- [Incremental Profit per Conversion: a Response Transformation for Uplift Modeling in E-Commerce Promotions](https://mlsanity.com/paper/2306.13759/) (2023)
- [Benchmarking for Deep Uplift Modeling in Online Marketing](https://mlsanity.com/paper/2406.00335/) (2024)
- [Bi-Level Decision-Focused Causal Learning for Large-Scale Marketing Optimization: Bridging Observational and Experimental Data](https://mlsanity.com/paper/2510.19517/) (2025)
- [SACO: Sequence-Aware Constrained Optimization Framework for Coupon Distribution in E-commerce](https://mlsanity.com/paper/2508.09198/) (2025)
- [Evaluating Uplift Modeling under Structural Biases: Insights into Metric Stability and Model Robustness](https://mlsanity.com/paper/2603.20775/) (2026)
- [Segment Discovery: Enhancing E-commerce Targeting](https://mlsanity.com/paper/2409.13847/) (2024)
- [Maturity Framework for Enhancing Machine Learning Quality](https://mlsanity.com/paper/2502.15758/) (2025)
- [Hidden Representation Clustering with Multi-Task Representation Learning towards Robust Online Budget Allocation](https://mlsanity.com/paper/2506.00959/) (2025)
- [Guardrailed Uplift Targeting: A Causal Optimization Playbook for Marketing Strategy](https://mlsanity.com/paper/2512.19805/) (2025)
- [VALOR: Value-Aware Revenue Uplift Modeling with Treatment-Gated Representation for B2B Sales](https://mlsanity.com/paper/2604.02472/) (2026)
- [Budget-Constrained Causal Bandits: Bridging Uplift Modeling and Sequential Decision-Making](https://mlsanity.com/paper/2604.26169/) (2026)
- [Generative Optimization for Incentivized Advertising with Global Level Constraints](https://mlsanity.com/paper/2608.04421/) (2026)
- [FunnelCausalNet: Funnel-aware Joint Conversion-Revenue Uplift for Multi-tier Coupon Allocation](https://mlsanity.com/paper/2608.11675/) (2026)
- [A General Framework for Budgeted Threshold Incentives on Request](https://mlsanity.com/paper/2609.29724/) (2026)

## Abstract (arXiv)

Promotions and discounts are essential components of modern e-commerce platforms, where they are often used to incentivize customers towards purchase completion. Promotions also affect revenue and may incur a monetary loss that is often limited by a dedicated promotional budget. We study the Online Constrained Multiple-Choice Promotions Personalization Problem, where the optimization goal is to select for each customer which promotion to present in order to maximize purchase completions, while also complying with global budget limitations. Our work formalizes the problem as an Online Multiple Choice Knapsack Problem and extends the existent literature by addressing cases with negative weights and values. We provide a real-time adaptive method that guarantees budget constraints compliance and achieves above 99.7% of the optimal promotional impact on various datasets. Our method is evaluated on a large-scale experimental study at one of the leading online travel platforms in the world.
