Verification of Dynamic Advertising Traffic Allocation Strategy Based on Multi arm Slot Machine

Authors

  • Qiquan Fang Zhejiang University of Science and Technology, Hangzhou 310023, China Author
  • Ziyi Liu Zhejiang University of Science and Technology, Hangzhou 310023, China Author
  • Zihan Meng Zhejiang University of Science and Technology, Hangzhou 310023, China Author
  • Jiarong Luo Zhejiang University of Science and Technology, Hangzhou 310023, China Author

DOI:

https://doi.org/10.63313/EBM.9053

Keywords:

Dynamic Advertising Traffic Allocation, Multi Arm Slot Machine, Thompson Sam-Pling Algorithm, Time Decay Factor

Abstract

With the rapid development of the Internet advertising market, advertisers have dramatically increased their demands for real-time accuracy. Traditional static allocation strategies have slow feedback and low exploration efficiency, while existing dynamic solutions still face problems such as complex calcula-tions and long cold start times. Therefore, this article proposes a lightweight dynamic allocation strategy based on the multi arm slot machine (MAB) framework. This strategy transforms advertising selection modeling into a seri-alized decision-making problem, providing real-time feedback to optimize long-term returns. The Thompson Sampling algorithm is used to introduce a time decay factor to address user interest drift. The experiment used Criteo's real advertising exposure datasets to compare five multi arm slot machine algo-rithms. The results showed that the Thompson Sampling algorithm with attenu-ation factor (TS Decay) performed excellently in terms of cumulative click through rate, convergence steps, and handling interest drift. In real data verifi-cation, the click through rate (CTR) reached 6.9%, which is better than other algorithms. This strategy combines Bayesian inference and time decay models to provide a framework for real-time decision-making in lightweight scenarios, helping to optimize the real-time performance of advertising delivery systems.

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Published

2025-05-13

How to Cite

Verification of Dynamic Advertising Traffic Allocation Strategy Based on Multi arm Slot Machine. (2025). Economics & Business Management, 1(3), 36-45. https://doi.org/10.63313/EBM.9053