Reinforcement learning-based optimization strategy for online advertising budget allocation
This paper proposes a reinforcement learning-based optimization framework that defines a structured state space (real-time conversion rates, channel ROI, historical CTR), action space (budget-compliant allocations), and reward function (balancing revenue, cost, and placement effectiveness). To enhance adaptability, we introduce a multi-channel synergy mechanism using behavioral correlation matrices and a time-sequence update model for predictive, real-time budget adjustment. Trained with Proximal Policy Optimization (PPO) in a high-fidelity simulation, the model outperforms traditional rule-based and DQN baselines in CTR (+8.7%), ROI (+12.4%), and policy stability, while reducing latency and memory usage.
Authors
- Lingyun Tong
- Jiawen Shi (ORCID: https://orcid.org/0000-0003-2897-0319)
- Qiong Cao
- Mengfei Yang
Institutions
- Pyramid Technical Consultants (United States) (US)
Publication Details
- Published
- 2025-04-25
- DOI
- https://doi.org/10.1109/icaid65275.2025.11034517
- Citations
- 9
- Primary Topic
- Consumer Market Behavior and Pricing
- Type
- article
- Field-Weighted Citation Impact
- 18.65