Feedback Control in Programmatic Advertising: The Frontier of Optimization in Real-Time Bidding

Feedback control is critical in the scalable optimization of Internet advertising, and it is, therefore, an enabling technology. However, it is challenging to model the plant and design the controller because the plant is nonlinear, time varying, stochastic, and poorly known. A closed-loop system model easily becomes unrealistic or extremely complicated and intractable to analyze.