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Less Traffic, Better Outcomes: Competition-Aware Request Dispatch in Real-Time Ad Exchanges

arXiv 2608.03705 ↗First posted 4 Aug 2026cs.AI cs.LGcited by 0

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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.

Key facts. No citing papers in the map yet (data through 7 Oct 2026). Builds on 12 of its 19 references that are in the map. First posted on arXiv 4 Aug 2026.

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References · 12

  1. 2017Proximal Policy Optimization Algorithmscited by 14,441
  2. 2017Multi-Task Learning Using Uncertainty to Weigh Losses for Scene Geometry and Semanticscited by 1,345
  3. 2017Deep & Cross Network for Ad Click Predictionscited by 392
  4. 2020DCN V2: Improved Deep & Cross Network and Practical Lessons for Web-scale Learning to Rank Systemscited by 326
  5. 2017Real-Time Bidding by Reinforcement Learning in Display Advertisingcited by 90
  6. 2018Budget Constrained Bidding by Model-free Reinforcement Learning in Display Advertisingcited by 60
  7. 2021Cross DQN: Cross Deep Q Network for Ads Allocation in Feedcited by 18
  8. 2015Smart Pacing for Effective Online Ad Campaign Optimizationcited by 14
  9. 2019Deep Landscape Forecasting for Real-time Bidding Advertisingcited by 12
  10. 2023RLTP: Reinforcement Learning to Pace for Delayed Impression Modeling in Preloaded Adscited by 4
  11. 2019No More Chasing Waterfalls: A Measurement Study of the Header Bidding Ad-Ecosystemcited by 3
  12. 2018A Multi-Agent Reinforcement Learning Method for Impression Allocation in Online Display Advertisingcited by 2

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