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.

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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
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article

Reinforcement learning-based optimization strategy for online advertising budget allocation

Lingyun Tong, Jiawen Shi, Qiong Cao, Mengfei Yang
9 citations
Consumer Market Behavior and Pricing
18.65
article

Reinforcement learning-based optimization strategy for online advertising budget allocation

Lingyun Tong, Jiawen Shi, Qiong Cao, Mengfei Yang
article en
9 citations

Abstract

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.

Pyramid Technical Consultants (United States) (US)
Openalex Percentile: Top 1%
Consumer Market Behavior and Pricing
18.65
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