Next-Gen Sponsored Search: Crafting the Perfect Query with Inventory-Aware RAG (InvAwr-RAG) Based GenAI

Sponsored search plays a crucial role in e-commerce revenue generation, where advertisers strategically bid on keywords to capture the attention of users through relevant search queries. However, the process of identifying pertinent keywords for a given query presents significant challenges because of a vast and evolving keyword landscape, ambiguous intentions, and topic diversity. This paper highlights an opportunity for to earn a considerable amount of Ads revenue and user engagement where a significant proportion of queries fail to retrieve any sponsored ads. To utilize this opportunity, we introduce the Inventory-Aware RAG-based Generative AI model (InvAwr-RAG), which integrates advanced semantic retrieval and real-time inventory data. This model combines dynamically generated and historically successful queries to align with available inventory and ad campaigns while diversifying rewritten queries to enhance relevance and user engagement. Preliminary results show a significant 68% increase in fill rate and balanced relevance metrics, indicating a strong potential for increased ad revenue. The InvAwr-RAG model sets a new standard in dynamic query optimization, significantly improving ad relevancy, advertiser ROI, and user experience on Walmart's digital platform.