Abstract
Social media influencers account for a growing share of marketing worldwide. We demonstrate the existence of a novel form of market failure in the advertising market: influencer cartels, where groups of influencers collude to increase their advertising revenue by inflating their engagement. Our theoretical model shows that influencer cartels can improve consumer welfare if they expand social media engagement to the target audience, or reduce welfare if they divert engagement to less relevant audiences. Drawing on the model's insights, we empirically examine influencer cartels using novel datasets and machine learning tools, and derive policy implications.
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Apr 21, 2026cs.LG
We introduce a new budgeted framework for online influence maximization, considering the total cost of an advertising campaign instead of the common cardinality constraint on a chosen influencer set. Our approach better models the real-world setting where the cost of influencers varies and advertisers want to find the best value for their overall social advertising budget. We propose an algorithm assuming an independent cascade diffusion model and edge level semi-bandit feedback, and provide both theoretical and experimental results. Our analysis is also valid for the cardinality constraint setting and improves the state of the art regret bound in this case.
Pierre Perrault, Jennifer Healey, Zheng Wen +1
May 1, 2026cs.LG
We study a graph bandit setting where the objective of the learner is to detect the most influential node of a graph by requesting as little information from the graph as possible. One of the relevant applications for this setting is marketing in social networks, where the marketer aims at finding and taking advantage of the most influential customers. The existing approaches for bandit problems on graphs require either partial or complete knowledge of the graph. In this paper, we do not assume any knowledge of the graph, but we consider a setting where it can be gradually discovered in a sequential and active way. At each round, the learner chooses a node of the graph and the only information it receives is a stochastic set of the nodes that the chosen node is currently influencing. To address this setting, we propose BARE, a bandit strategy for which we prove a regret guarantee that scales with the detectable dimension, a problem dependent quantity that is often much smaller than the number of nodes.
Alexandra Carpentier, Michal Valko
Jun 25, 2026cs.IR
In large-scale paid acquisition and growth advertising systems, production attribution outputs are widely used for daily budget allocation and channel diagnosis. However, paid-attributed conversions such as daily new users (DNU) may systematically overstate true incremental growth when paid channels overlap with organic demand, brand-driven traffic, or other acquisition channels. This attribution-cannibalization mismatch can distort incremental ROI measurement and budget decisions at scale. We propose an experiment-calibrated attribution correction framework that uses incrementality experiments as causal anchors to convert sparse lift measurements into daily correction estimates. To make the corrected signal actionable at production granularity, we further allocate calibrated cannibalization volume across business hierarchies under structural consistency constraints. Offline forward-in-time validation against channel-level incrementality experiment readouts shows that the proposed framework substantially reduces calibration error relative to raw attribution and fine-grained ML baselines. Deployed across multiple global TikTok markets, the system supported budget and traffic strategy adjustments that were followed by an approximately 15-percentage-point reduction in the measured cannibalization rate.
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