Less Traffic, Better Outcomes: Competition-Aware Request Dispatch in Real-Time Ad Exchanges
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Abstract (arXiv)
Real-time bidding (RTB) ad exchanges typically forward nearly all incoming requests to demand-side platforms (DSPs), even though only a small fraction receive bids. This over-distribution weakens auction outcomes: DSPs throttle participation under compute and budget constraints, reducing the effective use of limited bidding capacity. We present a competition-aware request dispatch framework that uses distributional bid prediction and probabilistic forwarding to decide whether each request should be sent to each DSP. The system adapts per-DSP thresholds over time through lightweight policy optimization to track non-stationary market conditions. We evaluate the framework through four sequential online experiments on a production platform serving over 20 billion daily requests. A full multi-DSP deployment reduces DSP request volume under the policy by 34.2% while increasing net revenue by 4.6% (p<0.001) in a recent 14-day window after an initial DSP adaptation period. Further analysis highlights strong heterogeneity across traffic segments and reveals that aggregate metrics can be misleading. Segment-level and per-DSP analyses suggest that the policy surfaces comparative advantages among DSPs, improving monetized outcomes without increasing overall request volume.
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References · 12
- 2017Proximal Policy Optimization Algorithmscited by 14,441
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- 2021Cross DQN: Cross Deep Q Network for Ads Allocation in Feedcited by 18
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- 2023RLTP: Reinforcement Learning to Pace for Delayed Impression Modeling in Preloaded Adscited by 4
- 2019No More Chasing Waterfalls: A Measurement Study of the Header Bidding Ad-Ecosystemcited by 3
- 2018A Multi-Agent Reinforcement Learning Method for Impression Allocation in Online Display Advertisingcited by 2
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