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In the field of computational advertising, the integration of ads into the outputs of large language models (LLMs) presents an opportunity to support these services without compromising content integrity. This paper introduces novel auction…

Computer Science and Game Theory · Computer Science 2025-06-16 MohammadTaghi Hajiaghayi , Sébastien Lahaie , Keivan Rezaei , Suho Shin

The commercialization of LLM applications is the next frontier in online advertising, with LLM-native advertising emerging as a promising paradigm by integrating ads into LLM-generated content. However, classic mechanisms are no longer…

Computer Science and Game Theory · Computer Science 2026-04-28 Chujie Zhao , Qun Hu , Shiping Song , Dagui Chen , Han Zhu , Jian Xu , Bo Zheng

Sustainable monetization of Large Language Models (LLMs) remains a critical open challenge. Traditional search advertising, which relies on static keywords, fails to capture the fleeting, context-dependent user intents--the specific…

Computer Science and Game Theory · Computer Science 2026-01-28 Shengwei Xu , Zhaohua Chen , Xiaotie Deng , Zhiyi Huang , Grant Schoenebeck

As Large Language Models (LLMs) transition into conversational agents, generative advertising emerges as a crucial monetization strategy. However, embedding advertisements within unstructured LLM outputs introduces a critical trilemma:…

Machine Learning · Computer Science 2026-05-12 Peiran Yun , Wenxin Xu , Jiayuan Liu , Yihang Zhang , Liang Zeng , Lingkai Kong , Tonghan Wang

We investigate auction mechanisms for AI-generated content, focusing on applications like ad creative generation. In our model, agents' preferences over stochastically generated content are encoded as large language models (LLMs). We…

Computer Science and Game Theory · Computer Science 2024-07-03 Paul Duetting , Vahab Mirrokni , Renato Paes Leme , Haifeng Xu , Song Zuo

The integration of advertising auction mechanisms into large language model (LLM)-based chatbots presents a significant opportunity for commercialization, yet poses unique challenges in balancing relevance, efficiency, and user experience.…

Information Retrieval · Computer Science 2026-05-19 Haoran Sun , Xinrui Song , Xinyu Zhang , Zhaohua Chen , Xu Chu , Zhilin Zhang , Chuan Yu , Jian Xu , Bo Zheng , Xiaotie Deng

Large language models (LLMs) enable a new form of advertising for retrieval-augmented generation (RAG) systems in which organic responses are blended with contextually relevant ads. The prospect of such "generated native ads" has sparked…

Information Retrieval · Computer Science 2026-04-10 Sebastian Heineking , Wilhelm Pertsch , Ines Zelch , Janek Bevendorff , Benno Stein , Matthias Hagen , Martin Potthast

This paper explores the potential for leveraging Large Language Models (LLM) in the realm of online advertising systems. We introduce a general framework for LLM advertisement, consisting of modification, bidding, prediction, and auction…

Computers and Society · Computer Science 2024-09-10 Soheil Feizi , MohammadTaghi Hajiaghayi , Keivan Rezaei , Suho Shin

Traditional ads recommendation systems have primarily focused on optimizing for prediction accuracy of click or conversion events using canonical metrics such as recall or normalized discounted cumulative gain (NDCG). With the hyper-growth…

The transition to auto-bidding in online advertising has shifted the focus of auction theory from quasi-linear utility maximization to value maximization subject to financial constraints. We study mechanism design for buyers with private…

Computer Science and Game Theory · Computer Science 2026-02-24 Xiaodong Liu , Weiran Shen , Zihe Wang

We consider the fundamental problem of designing a truthful single-item auction with the challenging objective of extracting a large fraction of the highest agent valuation as revenue. Following a recent trend in algorithm design, we assume…

Computer Science and Game Theory · Computer Science 2024-01-25 Ioannis Caragiannis , Georgios Kalantzis

We study an auction setting in which bidders bid for placement of their content within a summary generated by a large language model (LLM), e.g., an ad auction in which the display is a summary paragraph of multiple ads. This generalizes…

Computer Science and Game Theory · Computer Science 2024-04-15 Kumar Avinava Dubey , Zhe Feng , Rahul Kidambi , Aranyak Mehta , Di Wang

Retrieval-augmented generation (RAG) is a popular technique for using large language models (LLMs) to build customer-support, question-answering solutions. In this paper, we share our team's practical experience building and maintaining…

Information Retrieval · Computer Science 2024-10-18 Sarah Packowski , Inge Halilovic , Jenifer Schlotfeldt , Trish Smith

While Retrieval-Augmented Generation (RAG) systems enhance Large Language Models (LLMs) by incorporating external knowledge, they still face persistent challenges in retrieval inefficiency and the inability of LLMs to filter out irrelevant…

Computation and Language · Computer Science 2025-02-13 Ruobing Yao , Yifei Zhang , Shuang Song , Yuhua Liu , Neng Gao , Chenyang Tu

Auction-based recommender systems are prevalent in online advertising platforms, but they are typically optimized to allocate recommendation slots based on immediate expected return metrics, neglecting the downstream effects of…

Information Retrieval · Computer Science 2023-08-01 Ruiyang Xu , Jalaj Bhandari , Dmytro Korenkevych , Fan Liu , Yuchen He , Alex Nikulkov , Zheqing Zhu

The growing scale of ad auctions on online advertising platforms has intensified competition, making manual bidding impractical and necessitating auto-bidding to help advertisers achieve their economic goals. Current auto-bidding methods…

Computation and Language · Computer Science 2026-03-06 Yewen Li , Zhiyi Lyu , Peng Jiang , Qingpeng Cai , Fei Pan , Bo An , Peng Jiang

Online advertising has become a core revenue driver for the internet industry, with ad auctions playing a crucial role in ensuring platform revenue and advertiser incentives. Traditional auction mechanisms, like GSP, rely on the independent…

Computer Science and Game Theory · Computer Science 2024-12-17 Ruitao Zhu , Yangsu Liu , Dagui Chen , Zhenjia Ma , Chufeng Shi , Zhenzhe Zheng , Jie Zhang , Jian Xu , Bo Zheng , Fan Wu

Auctions are a vital economic mechanism used to determine the market value of goods or services through competitive bidding within a specific framework. However, much of the current research primarily focuses on the bidding algorithms used…

Computational Engineering, Finance, and Science · Computer Science 2025-10-30 Jie Sun , Tianyu Zhang , Houcheng Jiang , Kexin Huang , Xiang Shu , Zhibo Zhu , Lintao Ma , Xingyu Lu , Jun Zhou , Junkang Wu , Chi Luo , An Zhang , Junkang Wu , Jiancan Wu , Xiang Wang

Generative advertising in large language model (LLM) responses requires optimizing sponsorship configurations under two strict constraints: the strategic behavior of advertisers and the high cost of stochastic generations. To address this,…

Computer Science and Game Theory · Computer Science 2026-04-09 Jiayuan Liu , Barry Wang , Jiarui Gan , Tonghan Wang , Leon Xie , Mingyu Guo , Vincent Conitzer

Efficient and fair spectrum allocation is a central challenge in 6G networks, where massive connectivity and heterogeneous services continuously compete for limited radio resources. We investigate the use of Large Language Models (LLMs) as…

Computer Science and Game Theory · Computer Science 2026-04-28 Ismail Lotfi , Ali Ghrayeb
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