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Generative Bid Shading in Real-Time Bidding Advertising
Yinqiu Huang, Hao Ma, Wenshuai Chen, Shuli Wang, Yongqiang Zhang, Xue Wei, Yinhua Zhu, Haitao Wang, Xingxing Wang
https://arxiv.org/abs/2508.06550

Generative Bid Shading in Real-Time Bidding Advertising
Bid shading plays a crucial role in Real-Time Bidding~(RTB) by adaptively adjusting the bid to avoid advertisers overspending. Existing mainstream two-stage methods, which first model bid landscapes and then optimize surplus using operations research techniques, are constrained by unimodal assumptions that fail to adapt for non-convex surplus curves and are vulnerable to cascading errors in sequential workflows. Additionally, existing discretization models of continuous values ignore the depend…