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arXiv · 2610.39244

CASH: A Capability-Aware Subsidy Harness for Advertiser Subsidy Allocation

Abstract

Advertising platforms subsidize advertisers through billing discounts, and Advertiser Subsidy Allocation (ASA) chooses a subsidy level for every account to maximize total discounted revenue under a platform-wide subsidy-rate constraint. In practice, operators configure these subsidies from business rules, advertiser tiers and operating goals. Such configuration draws on rich business experience, yet as the advertiser base grows, tier-level policies can neither resolve how individual accounts respond across subsidy levels nor allocate a shared budget at the granularity of single accounts. We propose CASH, a Capability-Aware Subsidy Harness for ASA. CASH pairs a knowledge-guided large language model (LLM) with a data-driven numerical response model, learns from realized outcomes where each is locally reliable across accounts and subsidy levels, and turns this reliability into explicit capability licenses that govern source selection, agent review and budget allocation. Its Expected Policy Coverage Gain (EPCG) directs a limited feedback budget toward evidence expected to expand high-value reliable coverage, and the resulting feedback further improves the numerical model and updates capability estimates. In a one-month online experiment with CASH serving 60% of a large-scale advertising platform's traffic, CASH raises revenue per account by 15.35% and ADVV by 19.86% over Control at an essentially unchanged subsidy rate, with further gains in revenue quality, LTV and retention.

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BibTeXRIS

Minmao Wang, Huihuang Lin, Likang Wu, Hongke Zhao, Shijie Yi, Fei Pan. 2026-10-29. CASH: A Capability-Aware Subsidy Harness for Advertiser Subsidy Allocation. https://arxiv.org/abs/2610.39244

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