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 advertising strategy


Dynamic Pricing and Learning with Bayesian Persuasion

Neural Information Processing Systems

We consider a novel dynamic pricing and learning setting where in addition to setting prices of products in sequential rounds, the seller also ex-ante commits to'advertising schemes'. That is, in the beginning of each round the seller can decide what kind of signal they will provide to the buyer about the product's quality upon realization. Using the popular Bayesian persuasion framework to model the effect of these signals on the buyers' valuation and purchase responses, we formulate the problem of finding an optimal design of the advertising scheme along with a pricing scheme that maximizes the seller's expected revenue. Without any apriori knowledge of the buyers' demand function, our goal is to design an online algorithm that can use past purchase responses to adaptively learn the optimal pricing and advertising strategy. We study the regret of the algorithm when compared to the optimal clairvoyant price and advertising scheme.


MPMA: Preference Manipulation Attack Against Model Context Protocol

Wang, Zihan, Zhang, Rui, Liu, Yu, Fan, Wenshu, Jiang, Wenbo, Zhao, Qingchuan, Li, Hongwei, Xu, Guowen

arXiv.org Artificial Intelligence

Model Context Protocol (MCP) standardizes interface mapping for large language models (LLMs) to access external data and tools, which revolutionizes the paradigm of tool selection and facilitates the rapid expansion of the LLM agent tool ecosystem. However, as the MCP is increasingly adopted, third-party customized versions of the MCP server expose potential security vulnerabilities. In this paper, we first introduce a novel security threat, which we term the MCP Preference Manipulation Attack (MPMA). An attacker deploys a customized MCP server to manipulate LLMs, causing them to prioritize it over other competing MCP servers. This can result in economic benefits for attackers, such as revenue from paid MCP services or advertising income generated from free servers. To achieve MPMA, we first design a Direct Preference Manipulation Attack (DPMA) that achieves significant effectiveness by inserting the manipulative word and phrases into the tool name and description. However, such a direct modification is obvious to users and lacks stealthiness. To address these limitations, we further propose Genetic-based Advertising Preference Manipulation Attack (GAPMA). GAPMA employs four commonly used strategies to initialize descriptions and integrates a Genetic Algorithm (GA) to enhance stealthiness. The experiment results demonstrate that GAPMA balances high effectiveness and stealthiness. Our study reveals a critical vulnerability of the MCP in open ecosystems, highlighting an urgent need for robust defense mechanisms to ensure the fairness of the MCP ecosystem.


Dynamic Pricing and Learning with Bayesian Persuasion

Neural Information Processing Systems

We consider a novel dynamic pricing and learning setting where in addition to setting prices of products in sequential rounds, the seller also ex-ante commits to'advertising schemes'. That is, in the beginning of each round the seller can decide what kind of signal they will provide to the buyer about the product's quality upon realization. Using the popular Bayesian persuasion framework to model the effect of these signals on the buyers' valuation and purchase responses, we formulate the problem of finding an optimal design of the advertising scheme along with a pricing scheme that maximizes the seller's expected revenue. Without any apriori knowledge of the buyers' demand function, our goal is to design an online algorithm that can use past purchase responses to adaptively learn the optimal pricing and advertising strategy. We study the regret of the algorithm when compared to the optimal clairvoyant price and advertising scheme.


Agentic Multimodal AI for Hyperpersonalized B2B and B2C Advertising in Competitive Markets: An AI-Driven Competitive Advertising Framework

Srinivas, Sakhinana Sagar, Das, Akash, Gupta, Shivam, Runkana, Venkataramana

arXiv.org Artificial Intelligence

The growing use of foundation models (FMs) in real-world applications demands adaptive, reliable, and efficient strategies for dynamic markets. In the chemical industry, AI-discovered materials drive innovation, but commercial success hinges on market adoption, requiring FM-driven advertising frameworks that operate in-the-wild. We present a multilingual, multimodal AI framework for autonomous, hyper-personalized advertising in B2B and B2C markets. By integrating retrieval-augmented generation (RAG), multimodal reasoning, and adaptive persona-based targeting, our system generates culturally relevant, market-aware ads tailored to shifting consumer behaviors and competition. Validation combines real-world product experiments with a Simulated Humanistic Colony of Agents to model consumer personas, optimize strategies at scale, and ensure privacy compliance. Synthetic experiments mirror real-world scenarios, enabling cost-effective testing of ad strategies without risky A/B tests. Combining structured retrieval-augmented reasoning with in-context learning (ICL), the framework boosts engagement, prevents market cannibalization, and maximizes ROAS. This work bridges AI-driven innovation and market adoption, advancing multimodal FM deployment for high-stakes decision-making in commercial marketing.


A Profit-Maximizing Strategy for Advertising on the e-Commerce Platforms

Xiao, Lianghai, Zhao, Yixing, Chen, Jiwei

arXiv.org Artificial Intelligence

The online advertising management platform has become increasingly popular among e-commerce vendors/advertisers, offering a streamlined approach to reach target customers. Despite its advantages, configuring advertising strategies correctly remains a challenge for online vendors, particularly those with limited resources. Ineffective strategies often result in a surge of unproductive ``just looking'' clicks, leading to disproportionately high advertising expenses comparing to the growth of sales. In this paper, we present a novel profit-maximing strategy for targeting options of online advertising. The proposed model aims to find the optimal set of features to maximize the probability of converting targeted audiences into actual buyers. We address the optimization challenge by reformulating it as a multiple-choice knapsack problem (MCKP). We conduct an empirical study featuring real-world data from Tmall to show that our proposed method can effectively optimize the advertising strategy with budgetary constraints.


How artificial intelligence is helping to measure creative effectiveness in marketing

#artificialintelligence

In marketing, 'creative impact' was once too subjective to measure. But with modern AI solutions, creative efforts can now be effectively analyzed. As part of The Drum's Creativity in Focus Deep Dive, Meta's Maria Pavlova (marketing science partner), Karen Chui (creative partner manager, EMEA) and Safia Dawood (marketing science partner) look at how AI tools can help marketing professionals develop more effective advertising strategies through creative effectiveness insights.


Learning to Infer User Hidden States for Online Sequential Advertising

Peng, Zhaoqing, Jin, Junqi, Luo, Lan, Yang, Yaodong, Luo, Rui, Wang, Jun, Zhang, Weinan, Xu, Haiyang, Xu, Miao, Yu, Chuan, Luo, Tiejian, Li, Han, Xu, Jian, Gai, Kun

arXiv.org Artificial Intelligence

To drive purchase in online advertising, it is of the advertiser's great interest to optimize the sequential advertising strategy whose performance and interpretability are both important. The lack of interpretability in existing deep reinforcement learning methods makes it not easy to understand, diagnose and further optimize the strategy. In this paper, we propose our Deep Intents Sequential Advertising (DISA) method to address these issues. The key part of interpretability is to understand a consumer's purchase intent which is, however, unobservable (called hidden states). In this paper, we model this intention as a latent variable and formulate the problem as a Partially Observable Markov Decision Process (POMDP) where the underlying intents are inferred based on the observable behaviors. Large-scale industrial offline and online experiments demonstrate our method's superior performance over several baselines. The inferred hidden states are analyzed, and the results prove the rationality of our inference.


Boost your B2B Advertising Strategy using Artificial Intelligence

#artificialintelligence

In B2B marketing, Account-Based Marketing has become one of the most talked about strategies. Advertising automation tools can make your Account-Based Marketing strategy easier and more scalable. Following the adoption of ABM, interest in Account-based Advertising (ABA) is no surprise. Thanks to new technology, targeting highly relevant advertising to the target accounts is now possible. The account as a whole can be targeted as well as an individual's buyer persona and role in their organization.


Semantic Advertising

Zamanzadeh, Ben, Ashish, Naveen, Ramakrishnan, Cartic, Zimmerman, John

arXiv.org Artificial Intelligence

This paper introduces the concept of online "Semantic Advertising", which we see as the technology that will help realize the full potential of Internet advertising. Internet advertising is a rapidly growing and arguably a dominant form of advertising. A recent IDC report (Weide, 2013) estimates that the total Internet advertising spend in 2011 was 87.4 billion dollars ($35B for the U.S. only), and predicts an annual growth rate of 16% over the next 5 years. We argue that Semantic Advertising, (SA), enables us to address the challenge of delivering relevance at scale in Internet Advertising. Our argument is based on our work as a company developing semantic technology for better online advertising. Semantic technology (Hitzler, Krotzsch and Rudolph, 2009) can be described as algorithms and software that enable representation and reasoning based on meaning. Several companies such as Google, Microsoft and Yahoo, and smaller startup companies have developed semantic technologies for advertising.