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CaliCausalRank: Calibrated Multi-Objective Ad Ranking with Robust Counterfactual Utility Optimization

arXiv:2602.18786v1 Announce Type: new Abstract: Ad ranking systems must simultaneously optimize multiple objectives including click-through rate (CTR), conversion rate (CVR), revenue, and user experience metrics. However, production systems face critical challenges: score scale inconsistency across traffic segments undermines threshold transferability, and position bias in click logs causes offline-online metric discrepancies. We propose CaliCausalRank, a unified framework that integrates training-time scale calibration, constraint-based multi-objective optimization, and robust counterfactual utility estimation. Our approach treats score calibration as a first-class training objective rather than post-hoc processing, employs Lagrangian relaxation for constraint satisfaction, and utilizes variance-reduced counterfactual estimators for reliable offline evaluation. Experiments on the Criteo and Avazu datasets demonstrate that CaliCausalRank achieves 1.1% relative AUC improvement, 31.6% c

arXiv:2602.18786v1 Announce Type: new Abstract: Ad ranking systems must simultaneously optimize multiple objectives including click-through rate (CTR), conversion rate (CVR), revenue, and user experience metrics. However, production systems face critical challenges: score scale inconsistency across traffic segments undermines threshold transferability, and position bias in click logs causes offline-online metric discrepancies. We propose CaliCausalRank, a unified framework that integrates training-time scale calibration, constraint-based multi-objective optimization, and robust counterfactual utility estimation. Our approach treats score calibration as a first-class training objective rather than post-hoc processing, employs Lagrangian relaxation for constraint satisfaction, and utilizes variance-reduced counterfactual estimators for reliable offline evaluation. Experiments on the Criteo and Avazu datasets demonstrate that CaliCausalRank achieves 1.1% relative AUC improvement, 31.6% calibration error reduction, and 3.2% utility gain compared to the best baseline (PairRank) while maintaining consistent performance across different traffic segments.

Executive Summary

The article proposes CaliCausalRank, a unified framework for ad ranking systems that integrates training-time scale calibration, constraint-based multi-objective optimization, and robust counterfactual utility estimation. This approach addresses critical challenges faced by production systems, including score scale inconsistency and position bias. CaliCausalRank achieves significant improvements in relative AUC, calibration error, and utility gain compared to the best baseline. While the framework demonstrates promising results on the Criteo and Avazu datasets, further research is needed to generalize its effectiveness across various traffic segments and datasets. The proposed method has the potential to improve the performance and fairness of ad ranking systems, leading to better user experiences and increased revenue for advertisers.

Key Points

  • CaliCausalRank integrates training-time scale calibration, constraint-based multi-objective optimization, and robust counterfactual utility estimation.
  • The framework addresses critical challenges faced by production systems, including score scale inconsistency and position bias.
  • CaliCausalRank achieves significant improvements in relative AUC, calibration error, and utility gain compared to the best baseline.

Merits

Strength in Addressing Critical Challenges

CaliCausalRank effectively addresses two critical challenges faced by production systems: score scale inconsistency and position bias, leading to improved performance and fairness in ad ranking systems.

Improved Performance

The framework achieves significant improvements in relative AUC, calibration error, and utility gain compared to the best baseline, demonstrating its effectiveness in optimizing multiple objectives.

Robust Counterfactual Utility Estimation

CaliCausalRank utilizes variance-reduced counterfactual estimators for reliable offline evaluation, providing a robust and reliable method for evaluating the performance of ad ranking systems.

Demerits

Limited Generalizability

The effectiveness of CaliCausalRank has only been demonstrated on the Criteo and Avazu datasets, and further research is needed to generalize its effectiveness across various traffic segments and datasets.

Dependence on Dataset Quality

The performance of CaliCausalRank may be sensitive to the quality of the dataset used for training, which can impact its effectiveness in real-world scenarios.

Computational Complexity

The framework may require significant computational resources to implement, which can be a limitation for large-scale ad ranking systems.

Expert Commentary

The article proposes a novel approach to improving the performance and fairness of ad ranking systems, which has the potential to impact the broader field of online advertising. While the framework demonstrates promising results on the Criteo and Avazu datasets, further research is needed to generalize its effectiveness across various traffic segments and datasets. The proposed method has the potential to improve the performance and fairness of ad ranking systems, leading to better user experiences and increased revenue for advertisers. However, its dependence on dataset quality and potential for computational complexity are limitations that need to be addressed.

Recommendations

  • Further research is needed to generalize the effectiveness of CaliCausalRank across various traffic segments and datasets.
  • The framework should be tested on a diverse range of datasets to ensure its robustness and reliability.
  • The proposed method should be compared to other state-of-the-art approaches to online advertising to demonstrate its effectiveness and advantages.

Sources