risk decision

Alimama Tech

Mar 14, 2023 · Artificial Intelligence

Bayesian Hierarchical Calibration for Online Advertising Scoring

Bayesian hierarchical calibration applies a lightweight, interpretable Bayesian GLM with variational inference to correct pre‑ and post‑click scoring biases, using risk‑aware objectives that reduce calibration error by up to 66%, lift revenue by 5%, and cut conversion costs, while handling cold‑start and dimension‑wise sparsity in online advertising.