Auto-bidding in real-time auctions via Oracle Imitation Learning (OIL)

Online advertising has become one of the most successful business models of the internet era. Impression opportunities are typically allocated through real-time auctions, where advertisers bid to secure advertisement slots. Deciding the best bid for an impression opportunity is challenging, due to the stochastic nature of user behavior and the variability of advertisement traffic over time. In this work, we propose a framework for training auto-bidding agents in multi-slot second-price auctions to maximize acquisitions (e.g., clicks, conversions) while adhering to budget and cost-per-acquisition (CPA) constraints. We exploit the insight that, after an advertisement campaign concludes, determining the optimal bids for each impression opportunity can be framed as a multiple-choice knapsack problem (MCKP) with a nonlinear objective. We propose an "oracle" algorithm that identifies a near-optimal combination of impression opportunities and advertisement slots, considering both past and future advertisement traffic data. This oracle solution serves as a training target for a student network which bids having access only to real-time information, a method we term Oracle Imitation Learning (OIL). Through numerical experiments, we demonstrate that OIL achieves superior performance compared to both online and offline reinforcement learning algorithms, offering improved sample efficiency. Notably, OIL shifts the complexity of training auto-bidding agents from crafting sophisticated learning algorithms to solving a nonlinear constrained optimization problem efficiently.

Augmenting Offline RL with Unlabeled Data

Recent advancements in offline Reinforcement Learning (Offline RL) have led to an increased focus on methods based on conservative policy updates to address the Out-of-Distribution (OOD) issue. These methods typically involve adding behavior regularization or modifying the critic learning objective, focusing primarily on states or actions with substantial dataset support. However, we challenge this prevailing notion by asserting that the absence of an action or state from a dataset does not necessarily imply its suboptimality. In this paper, we propose a novel approach to tackle the OOD problem. We introduce an offline RL teacher-student framework, complemented by a policy similarity measure. This framework enables the student policy to gain insights not only from the offline RL dataset but also from the knowledge transferred by a teacher policy. The teacher policy is trained using another dataset consisting of state-action pairs, which can be viewed as practical domain knowledge acquired without direct interaction with the environment. We believe this additional knowledge is key to effectively solving the OOD issue. This research represents a significant advancement in integrating a teacher-student network into the actor-critic framework, opening new avenues for studies on knowledge transfer in offline RL and effectively addressing the OOD challenge.

Integrating Domain Knowledge for handling Limited Data in Offline RL

With the ability to learn from static datasets, Offline Reinforcement Learning (RL) emerges as a compelling avenue for real-world applications. However, state-of-the-art offline RL algorithms perform sub-optimally when confronted with limited data confined to specific regions within the state space. The performance degradation is attributed to the inability of offline RL algorithms to learn appropriate actions for rare or unseen observations. This paper proposes a novel domain knowledge-based regularization technique and adaptively refines the initial domain knowledge to considerably boost performance in limited data with partially omitted states. The key insight is that the regularization term mitigates erroneous actions for sparse samples and unobserved states covered by domain knowledge. Empirical evaluations on standard discrete environment datasets demonstrate a substantial average performance increase of at least 27% compared to existing offline RL algorithms operating on limited data.