Budget constrained deep q-network for dynamic campaign allocation in computational advertising

Abstract

In the world of digital advertising, optimally allocating an advertisement campaign within a fixed pre-defined budget for an advertising duration aimed at maximizing number of conversions is very important for an advertiser. Embodiments of present disclosure provides a robust and easily generalizable method of optimal allocation of advertisement campaign by formulating it as a constrained Markov Decision Process (MDP) defined by agent state comprising user state and advertiser state, action space comprising a plurality of ad campaigns, state transition routine and a cumulative reward model which rewards maximum total conversions in an advertising duration. The cumulative reward model is trained in conjunction with a deep Q-network for solving the MDP to optimally allocate advertisement campaign for an advertising duration within a constrained budget.