{"about":{"site":"https://codewithpapers.app","non_affiliation":"Code with Papers and Syntology are not affiliated with, endorsed by, or sponsored by Papers with Code, Meta, or the pwc-archive mirror.","licence":"CC BY-SA 4.0","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","attribution":"https://codewithpapers.app/attribution","modified":"archive material modified by Syntology; see the attribution page"},"url":"/paper/search-and-score-based-waterfall-auction","title":"Search and Score-based Waterfall Auction Optimization","arxiv_id":"2201.06409","date":"2022-01-17","proceeding":null,"authors":["Dan Halbersberg","Matan Halevi","Moshe Salhov"],"abstract":"Online advertising is a major source of income for many online companies. One common approach is to sell online advertisements via waterfall auctions, through which a publisher makes sequential price offers to ad networks. The publisher controls the order and prices of the waterfall in an attempt to maximize his revenue. In this work, we propose a methodology to learn a waterfall strategy from historical data by wisely searching in the space of possible waterfalls and selecting the one leading to the highest revenues. The contribution of this work is twofold; First, we propose a novel method to estimate the valuation distribution of each user, with respect to each ad network. Second, we utilize the valuation matrix to score our candidate waterfalls as part of a procedure that iteratively searches in local neighborhoods. Our framework guarantees that the waterfall revenue improves between iterations ultimately converging into a local optimum. Real-world demonstrations are provided to show that the proposed method improves the total revenue of real-world waterfalls, as compared to manual expert optimization. Finally, the code and the data are available here.","url_abs":"https://arxiv.org/abs/2201.06409v2","url_pdf":"https://arxiv.org/pdf/2201.06409v2.pdf","source":{"archive":"pwc-archive (Hugging Face), CC BY-SA 4.0","snapshot":"2025-07-28","licence_url":"https://creativecommons.org/licenses/by-sa/4.0/legalcode","row_kind":"abstracts"},"code_links":[{"paper_slug":"search-and-score-based-waterfall-auction","repo_url":"https://github.com/playtikaresearch/public_waterfall2","is_official":1,"mentioned_in_paper":1,"mentioned_in_github":1,"framework":"none","reach":null}],"tasks":[],"methods":[],"datasets_introduced":[],"methods_introduced":[],"results":[],"syntology":{"syntology_url":null,"atlas_url":null,"mcp":null,"developers":"https://syntology.ai/developers"},"arxiv_metadata":null,"syntology_extracted_results":null}