In online advertising, display ads are increasingly being placed based on
real-time auctions where the advertiser who wins gets to serve the ad. This is
called real-time bidding (RTB). In RTB, auctions have very tight time
constraints on the order of 100ms. Therefore mechanisms for bidding
intelligently such as clickthrough rate prediction need to be sufficiently
fast. In this work, we propose to use dimensionality reduction of the
user-website interaction graph in order to produce simplified features of users
and websites that can be used as predictors of clickthrough rate. We
demonstrate that the Infinite Relational Model (IRM) as a dimensionality
reduction offers comparable predictive performance to conventional
dimensionality reduction schemes, while achieving the most economical usage of
features and fastest computations at run-time. For applications such as
real-time bidding, where fast database I/O and few computations are key to
success, we thus recommend using IRM based features as predictors to exploit
the recommender effects from bipartite graphs.Comment: Presented at the Probabilistic Models for Big Data workshop at NIPS
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