Multi-Platform Budget Management in Ad Markets with Non-IC Auctions

The online advertising industry has seen tremendous growth in recent years, with an estimated worth of 190 billion dollars in the United States alone in 2021 Statista (2021). Centralized platforms like Google and Meta play a significant role in this thriving industry, as advertisers, including small businesses and marketing practitioners, compete daily in thousands of auctions for valuable ad impressions. With multiple channels now available, advertisers are faced with the complex task of managing their budgets dynamically across different platforms, each with its own auction format that might or might not be incentive compatible. Advertisers aim to maximize their utility (such as exposure, impressions, CTRs, etc.) while staying within their budget limits. One of the challenges that they have is that each platform utilizes its own unique auction format that requires a tailored strategy. The problem becomes harder because advertisers have to balance their current and future bidding opportunities across platforms to ensure their budget lasts throughout the duration of their campaign, as running out of funds before the end of the campaign could result in significant losses. Moreover, they also might start with little/no prior information about how their competitors bid in each platform, adding another ambiguity to their problem. 1