English

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

Artificial Intelligence 2026-08-04 v1 Machine Learning

Abstract

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.

Cite

@article{arxiv.2608.03705,
  title  = {Less Traffic, Better Outcomes: Competition-Aware Request Dispatch in Real-Time Ad Exchanges},
  author = {Jonaid Shianifar and Blaz Mramor and Fangda Zou and Matthieu C. Martin and Xingsheng Guo and Zhihua Zhu and Rong Zhou and Bichen Shi},
  journal= {arXiv preprint arXiv:2608.03705},
  year   = {2026}
}

Comments

Accepted for presentation at AdKDD 2026, the premier workshop on artificial intelligence for advertising, held in conjunction with the 32nd ACM SIGKDD Conference on Knowledge Discovery and Data Mining (KDD 2026)