Automated creative optimization for E-commerce advertising

Advertising creatives are ubiquitous in E-commerce advertisements and aesthetic creatives may improve the click-through rate (CTR) of the products. Nowadays smart advertisement platforms provide the function of compositing creatives based on source materials provided by advertisers. Since a great number of creatives can be generated, it is difficult to accurately predict their CTR given a limited amount of feedback. Factorization machine (FM), which models inner product interaction between features, can be applied for the CTR prediction of creatives. However, interactions between creative elements may be more complex than the inner product, and the FM-estimated CTR may be of high variance due to limited feedback. To address these two issues, we propose an Automated Creative Optimization (AutoCO) framework to model complex interaction between creative elements and to balance between exploration and exploitation. Specifically, motivated by AutoML, we propose one-shot search algorithms for searching effective interaction functions between elements. We then develop stochastic variational inference to estimate the posterior distribution of parameters based on the reparameterization trick, and apply Thompson Sampling for efficiently exploring potentially better creatives. We evaluate the proposed method with both a synthetic dataset and two public datasets. The experimental results show our method can outperform competing baselines with respect to cumulative regret. The online A/B test shows our method leads to a 7% increase in CTR compared to the baseline.