A new research paper details an adaptive algorithm called e-LAAL, designed to optimize ad load in sponsored search markets. The algorithm was tested through a large-scale randomized field experiment on an Android app store, involving over five million users. Results showed that while increasing ad load can boost revenue, it may also negatively impact user conversions and engagement. The e-LAAL algorithm aims to balance this trade-off by dynamically adjusting ad load based on query-level outcomes and incorporating exploration strategies. In a production deployment serving over 22 million users, e-LAAL demonstrated improved revenue-conversion trade-offs compared to existing benchmarks. AI
IMPACT This research could lead to more efficient ad placement strategies in online search, potentially improving user experience and advertiser ROI.
RANK_REASON Research paper published on arXiv detailing a new algorithm. [lever_c_demoted from research: ic=1 ai=0.7]
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