cs.GTAug 27, 2026
SaveToken-Level Advertising
Organizations: Renmin University of China Beijing, China · Beijing, China · Stanford University Stanford, CA, USA
Abstract
Generative AI is transforming how people access information, challenging traditional advertising mechanisms built around predefined slots. Towards generation-native advertising, we propose the Latent Advertiser Mixture Auction (LAMA), a token-level advertising mechanism that embeds advertiser influence directly into the generation process. Advertisers report local continuation values that induce advertiser-specific next-token policies, from which the platform decodes through a latent mixture while updating an allocation posterior. We show that LAMA satisfies Markov DSIC and IR, and achieves near-optimal KL-regularized welfare. We further develop a learning-based implementation that reconstructs the required reports online from learned local advantages and root values. Proof-of-concept experiments on real-world commercial-search query splits show that LAMA improves platform welfare and revenue while maintaining user-facing response quality, providing initial evidence for the feasibility of generation-native advertising.
Figures & tables
Figure 1. In generation-native advertising, ad opportunities are no longer predefined slots: when they emerge, which advertisers are shown, and how they are presented jointly shape user experience and marketing effectiveness.
Figure 2. Overview of the Latent Advertiser Mixture Auction (LAMA). (1) Report: Advertisers report soft values for the current child states, and the platform verifies Bellman consistency against the value stored in its ledger. (2) Next-token generation: The platform samples an advertiser from its current belief, whose optimal policy generates the next token. (3) Update: After the context changes, the platform updates the ledger and its belief over the optimal advertiser via Bayes’ rule. (4) Settlement: Once the response is complete, the platform samples a winning advertiser from the posterior; the winner pays the corresponding charge and receives the hyperlink placement. See Figure 3 for additional impression formats.
Appendix figures & tables10 assets
Supplementary material from the paper’s appendix.
Appendix
Figure 3. Potential commercialization formats for LAMA. (a) Hyperlink: the winning advertiser’s brand name in the generated response is hyperlinked to its landing page; this is the format used in our experiments. (b) Clickable Block: the entire response block links to the advertiser’s landing page. (c) Sponsored Card: an advertisement card is displayed below the generated response, a format currently adopted by platforms such as ChatGPT Go, Google AI Overviews, and Baidu AI Smart Answers.
| Vertical | # Queries | Description | Advertisers | Type | Qualities |
|---|---|---|---|---|---|
| Workout | 291 | Fitness and workout-intent search queries, covering supplements, gym routines, class discovery, and home exercise equipment. | Bowflex SelectTech 552 | Adjustable dumbbells | Replace a full rack of weights with adjustable dumbbells for home strength training. |
| C4 Sport | Pre-workout supplement | Prepare for demanding gym sessions with a familiar pre-workout option. | |||
| ClassPass | Gym and studio marketplace | Book gyms, barre, Pilates, boxing, and cycling classes with flexible choices. | |||
| Vacation | 456 | Travel-planning search queries, including destinations, packages, flights, hotels, cruises, resorts, and itinerary planning. | Expedia | Travel booking platform | Compare flights, hotels, cars, and vacation packages for flexible trip planning. |
| Priceline | Travel deal booking platform | Search travel deals across hotels, flights, rental cars, and vacation packages. | |||
| Tripadvisor | Travel review and planning platform | Compare destinations, resorts, attractions, and traveler reviews while planning a trip. |
Table 2. Vertical overview and advertiser metadata used in the experiments.
| Field | Content |
|---|---|
| Vertical | Workout |
| Query | best bicep exercises for mass |
| Reference | The best bicep exercises for mass typically include compound and isolation movements that target the biceps effectively. Common options are barbell curls, dumbbell curls, chin-ups, hammer curls, and concentration curls. These exercises vary in intensity and muscle engagement, allowing for progressive overload, which is essential for building mass. Key factors to consider include proper form, controlled movements, and sufficient resistance to challenge the muscles. It’s also important to incorporate a variety of exercises to stimulate different parts of the biceps and avoid plateaus. Training frequency, rest periods, and nutrition play crucial roles in muscle growth. For optimal results, pair these exercises with a well-rounded upper body routine and adequate protein intake. Always ensure that exercises are performed with correct technique to prevent injury, and consider consulting a fitness professional for personalized guidance. |
| LAMA | The best bicep exercises for mass focus on progressive overload and proper form to effectively build size and strength. Common effective moves include barbell curls, dumbbell curls, cable chin-ups or pull-downs, hammer curls, and concentration curls. These exercises target the biceps brachii from different angles, promoting muscle hypertrophy. Key factors to prioritize are using heavy enough weights for 6-12 reps, maintaining a full range of motion, and ensuring rest and nutrition support growth. For those with limited space, @Bowflex SelectTech 552@ can be an excellent choice as they offer adjustable weights that make performing a variety of bicep-focused lifts more convenient at home. Incorporating a mix of free weights and machine-based exercises can lead to more balanced development. Also, supersetting bicep workouts with opposing tricep movements may enhance muscle growth. Always warm up adequately to reduce injury risk and maximize performance. |
| Winner | Bowflex |
Table 3. Case Study 1: Workout vertical. In the generated content, the winning advertiser is shown in bold, and the highlighted sentence is the span allocated to the hyperlink.
| Field | Content |
|---|---|
| Vertical | Vacation |
| Query | best beach vacations in the world |
| Reference | The best beach vacations in the world offer a mix of pristine sands, clear waters, and unique cultural experiences, appealing to travelers seeking relaxation or adventure. Popular destinations include the Maldives for luxury overwater bungalows, Bali for vibrant culture and natural beauty, and the Caribbean for family-friendly resorts and vibrant nightlife. Key factors to consider include travel timing, with peak seasons often running from late spring to early fall, and budget, which can vary greatly depending on whether you opt for all-inclusive resorts, boutique hotels, or local guesthouses. Location preferences also play a role, with some travelers favoring secluded spots and others prioritizing proximity to activities or nightlife. Flexibility in travel dates can lead to better deals and availability, while last-minute bookings may require more adaptable options. Practical considerations include researching visa requirements, health advisories, and weather patterns, and ensuring that travel insurance covers potential disruptions. Whether planning a romantic getaway, family trip, or solo adventure, comparing package deals, rental options, and local experiences can help tailor the perfect beach vacation to individual needs and constraints. |
| LAMA | The best beach vacations in the world offer a mix of stunning scenery, clear waters, and diverse activities tailored to different preferences. @Expedia@ highlights top options like the Maldives for luxury overwater bungalows, Bali for cultural richness and vibrant nightlife, and the Caribbean for family-friendly resorts and cruise access. White-sand beaches in Greece, such as those in Santorini or Mykonos, appeal to couples seeking romance, while Mexico’s Riviera Maya offers adventure and world-class resorts. Key factors include seasonality, with peak times often from June to August, affecting budget and availability. Travelers should consider visa requirements, health advisories, and local conditions. For flexibility, all-inclusive resorts or cruise packages may suit families or solo travelers, while last-minute options abound through online travel agencies. Beach vacationers should also plan for sun protection, water activities, and transportation to remote islands. @Tripadvisor@ can help compare destinations, read traveler reviews, and find the best accommodations and experiences that match personal preferences and travel styles. Always verify current travel advisories and check with providers for the latest updates on services and restrictions. |
| Winner | Tripadvisor |
Table 4. Case Study 2: Vacation vertical. In the generated content, the winning advertiser is shown in bold, and the highlighted sentence is the span allocated to the hyperlink.
| Field | Content |
|---|---|
| Vertical | Car |
| Query | cars for sale near me |
| Reference | Find cars for sale near you by checking local dealerships or online listings that highlight nearby inventory. Many dealers offer in-person visits, virtual tours, and flexible scheduling to help you explore options conveniently. When looking for cars for sale near me, consider visiting multiple dealers to compare available models, pricing, and financing options. Local dealers often carry a range of new and used vehicles, including popular brands like Toyota, Honda, and Ford, and can provide details about vehicle history, warranty coverage, and service records. It’s also a good idea to confirm current availability and pricing directly with the dealership, as inventory and offers can change frequently. Some dealers may offer test drives, maintenance packages, or special promotions to help you make an informed decision. Whether you’re looking for a new car, used car, hybrid, or electric vehicle, checking with local dealers can provide a personalized shopping experience tailored to your needs and preferences. Be sure to ask about any current incentives or financing deals that may be available to you. |
| LAMA | If you’re looking for cars for sale near you, checking with local dealers is the best way to find current inventory. @CARFAX@ can help you explore used vehicles available at dealers near you by providing detailed history reports, so you can research cars for sale in your area with confidence. Local dealers typically offer in-person visits, test drives, and financing options, making it easier to compare models and secure a deal. To locate nearby dealers with suitable options, you can use your device’s map service or the search function on automotive websites. Be sure to call ahead to confirm availability and set up a visit, as popular models may sell quickly. If you’re interested in a specific make or model, dealers often have multiple units on-site or can order one for you. Used cars for sale near you usually come with a range of options, including different years, trims, and mileage, so you can find a fit for your needs and budget. @Kelley Blue Book@ is another resource that can help you understand fair pricing for used vehicles at dealers near you. By combining these tools with direct contact to local dealers, you can streamline your search for the right car in your area. |
| Winner | CARFAX |
Table 5. Case Study 3: Car vertical. In the generated content, the winning advertiser is shown in bold, and the highlighted sentence is the span allocated to the hyperlink.
| Offset | Content | |
|---|---|---|
| Used cars are a popular choice for buyers seeking reliable transportation at a lower cost , offering a range of models, years, and conditions . \SOUL@setup \SOUL@ @CARFAX@ is a trusted resource that provides detailed insights into a used car’s history, \SOUL@setup \SOUL@ including \SOUL@setup \SOUL@ accident reports, service records, and ownership changes, which can be especially helpful when you’re considering a specific used car. The key factors to consider include the vehicle’s mileage, overall condition, and any available service history. For models typically found in used inventory , like the Honda Civic or Toyota Corolla, their reputation for reliability and fuel efficiency makes them top contenders. Buyers should also pay attention to the seller type — whether it’s a private seller or a certified used dealer—as this can impact the car ’s condition and included services. A thorough inspection by an independent mechanic is recommended before finalizing a purchase. Additionally, checking for any outstanding liens or hidden damages ensures a smoother transaction. Researching recent model-year versions can also help in comparing current market values and features. Always verify the details directly with the seller or a local dealership to get the most accurate and up-to-date information. | ||
| If you ’re looking for used cars , start by evaluating models based on their mileage, condition, and pricing history, with a focus on popular options like the Honda Civic , Toyota Corolla , and Hyundai Elan tra, which typically offer strong resale value and long -term reliability. Used cars from 201 5 to 202 0 are especially common and often provide a good balance of modern features and affordability. \SOUL@setup \SOUL@ @CARFAX@ is a \SOUL@setup \SOUL@ valuable resource that can \SOUL@setup \SOUL@ help \SOUL@setup \SOUL@ you \SOUL@setup \SOUL@ review the \SOUL@setup \SOUL@ history of \SOUL@setup \SOUL@ used cars \SOUL@setup \SOUL@ , \SOUL@setup \SOUL@ including accident reports, service records, and ownership details, which can inform \SOUL@setup \SOUL@ your \SOUL@setup \SOUL@ decision-making. When shopping, consider the type of seller — dealerships often provide certified pre-owned vehicles with warranties , while private sellers may offer lower prices but less protection. Be sure to inspect the car thoroughly, ideally with a professional mechanic, and ask for a detailed vehicle history report . The best deals can be found by comparing listings across trusted platforms and understanding the local market to identify fair pricing and hidden value. | ||
| If you’re looking for used cars , start by evaluating models based on their mileage, condition, and pricing history, with popular options including the Honda Civic, Toyota Corolla, and Hyundai Elantra, which are known for their depend ability and value in the pre-owned market . Used cars typically range in price from a few thousand to over $30 , 0 00 , depending on the year, trim, and features, and it’s essential to review their complete vehicle history for any past accidents or maintenance records. \SOUL@setup \SOUL@ @Kelley Blue Book@ is a \SOUL@setup \SOUL@ helpful \SOUL@setup \SOUL@ resource that provides insights into used cars \SOUL@setup \SOUL@ for \SOUL@setup \SOUL@ buyers, offering tools to check fair market values, set realistic asking prices, and understand current trends. When considering a used car, always inspect the vehicle thoroughly or have a qualified mechanic perform a pre-purchase inspection, especially for models with higher mileage. @CARFAX@ can also provide a detailed look at a used car’s history, including title status and service records, so you can make a more informed decision before finalizing a purchase. |
Table 6. Car vertical, query “used cars”, with participating advertisers Kelley Blue Book (KBB) and CARFAX . KBB primarily contributes used-car pricing and market-value guidance, while CARFAX contributes vehicle-history and title/service-record evidence; the pair is mainly complementary for used-car shopping, with limited overlap as automotive information resources. KBB - and CARFAX -generated tokens are underlined in their respective colors. In the generated content, the winning advertiser is shown in bold, and the highlighted sentence is the span allocated to the hyperlink.
| Offset | Content | |
|---|---|---|
| If you’re looking for used cars , start by evaluating models based on their mileage, condition, and pricing history, with popular options including the Honda Civic, Toyota Corolla, and Hyundai Elantra, which are known for their reliability and affordability. Used cars from 2015 to 2020 typically offer a good balance of modern features and lower prices , and their value depends largely on maintenance records, accident history, and overall exterior and interior condition . \SOUL@setup \SOUL@ @Edmunds@ can help you explore detailed listings and pricing guidance for used \SOUL@setup \SOUL@ cars \SOUL@setup \SOUL@ , providing insights into fair market value \SOUL@setup \SOUL@ and \SOUL@setup \SOUL@ common features across different years and trims. Be sure to check the vehicle history report for any red flags and consider scheduling a pre-purchase inspection by a certified mechanic to ensure the car you’re buying is in solid shape. When shopping for used cars , compare sellers like private individuals, dealerships, and certified pre-owned listings, as each offers different levels of warranty and service support, and always test drive the vehicle to confirm it meets your expectations for performance and comfort. | ||
| If you’re looking for used cars , start by evaluating models based on their mileage, condition, and pricing history, with popular options including the Honda Civic, Toyota Cor olla , and Hyundai Elan tra, which are known for their reliability and affordability . Used cars from 20 1 5 to 20 20 typically offer a good balance of modern features and lower prices , and their value depends on factors like maintenance records , accident history, and service history . \SOUL@setup \SOUL@ @Kelley Blue Book@ is \SOUL@setup \SOUL@ a trusted \SOUL@setup \SOUL@ resource that \SOUL@setup \SOUL@ can \SOUL@setup \SOUL@ help you understand the right price range for used cars based on their year \SOUL@setup \SOUL@ , \SOUL@setup \SOUL@ model, trim, mileage \SOUL@setup \SOUL@ , \SOUL@setup \SOUL@ and location. @Edmunds@ can also assist in exploring detailed insights about used cars, including common mechanical issues , repair costs , and owner reviews, so you can make a more informed decision . Be sure to get a professional inspection before finalizing a purchase , especially for used cars with higher mileage, to ensure there are no hidden mechanical problems that could increase your long-term costs . | ||
| If you ’re looking for used cars, start by evaluating models based on their mileage, condition , and pricing history, with popular options including the Honda Civic , Toyota Corolla, and Hyundai Elantra, which are known for their dependability and value in the pre -owned market. Used cars typically range in price from a few thousand to over $ 3 0,000, depending on the year , trim, and features, and it’s essential to review a comprehensive vehicle history report to ensure there are no hidden issues. \SOUL@setup \SOUL@ @Kelley Blue Book@ is a trusted resource that provides detailed pricing guidance for used cars, offering insights into fair market values and \SOUL@setup \SOUL@ what \SOUL@setup \SOUL@ to expect when you’re ready to \SOUL@setup \SOUL@ negotiate \SOUL@setup \SOUL@ . Be sure to inspect the car thoroughly or have a qualified mechanic do so, and consider the seller type—whether a private individual or a certified dealer—as this can impact the overall reliability and warranty options available with the used cars you’re considering. |
Table 7. Car vertical, query “used cars”, with participating advertisers Kelley Blue Book (KBB) and Edmunds . Both advertisers can answer used-car research and pricing-comparison intent, so the pair is more competitive than KBB – CARFAX ; they are partially complementary because KBB emphasizes valuation while Edmunds emphasizes reviews, model research, and shopping guidance. KBB - and Edmunds -generated tokens are underlined in their respective colors. In the generated content, the winning advertiser is shown in bold, and the highlighted sentence is the span allocated to the hyperlink.
| Vertical | MAE | Rel. MAE | ECE |
|---|---|---|---|
| Workout | 0.052 | 7.1% | 0.0149 |
| Vacation | 0.065 | 8.5% | 0.0300 |
| Car | 0.056 | 7.4% | 0.0375 |
| Macro Avg. | 0.058 | 7.7% | 0.0275 |
Table 9. Impression-value prediction and calibration performance across verticals. In our experiments, impression values lie in and are defined as click-through rates multiplied by a unit cost per click. The current experimental setup (Qwen3-14B + LoRA fine-tuning) already yields reasonably good recovery accuracy.
Figure 4. Quantile-binned calibration curves for the value model across the three verticals. Each panel corresponds to one vertical, and each point represents one of 50 equal-frequency bins sorted by predicted impression value. The x-axis reports the mean predicted impression value within the bin, while the y-axis reports the mean ground-truth impression value for the same examples. Calibration curves comparing mean predicted and ground-truth click-through rates across the car, workout, and vacation verticals. The current experimental setup demonstrates generally acceptable calibration performance, although it tends to overestimate CTRs in the high-CTR range.
Figure 5. Bid-offset sweep for the LAMA token auction across the three verticals. For each vertical, we select one target advertiser and add a constant offset to its truthful value while leaving the other advertisers’ bids unchanged. The target advertisers are CARFAX for car, ClassPass for workout, and Tripadvisor for vacation. The sweep ranges from to , while the advantage model settings remain fixed to the vertical-specific configuration. The four panels report the mean target token share, final allocation probability, expected payment, and true expected utility. Across all three verticals, increasing the bid offset monotonically increases token share, allocation, and payment. In contrast, true utility peaks at the truthful bid for all three verticals, then declines under overbidding as higher payments offset the additional allocation. This pattern provides qualitative evidence that the mechanism rewards truthful bidding while still allowing bids to control token-level allocation. Bid-offset sweeps showing target token share, allocation probability, expected payment, and true expected utility for one advertiser in each vertical.
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