From Prediction to Incrementality: Causal Optimization for Large-Scale Targeting and Recommendation
Changshuai Wei, John Bencina, Phuc Nguyen, Andre Assuncao Silva T Ribeiro, Benjamin Zelditch
Abstract
Large-scale targeting and recommendation systems are typically built around predictive scores fed into heuristic or local allocation. When the business goal is incremental impact, as in marketing campaigns, incentives, and notifications, this paradigm systematically misallocates resources toward users who would have acted anyway. We present a decision-centric framework that instead optimizes causal effects under global constraints, aligning three components under a single objective: a causal neural network with a Transformer backbone for individual treatment-effect estimation, a Bayesian neural-bandit layer for uncertainty-aware exploration, and a dual-based large-scale linear-programming layer for constrained allocation. The framework also supports sequential context and multi-outcome, attribute-conditioned scoring through a Transformer encoder and outcome embeddings. We evaluate it with offline simulations on a public bandit dataset, targeted architectural ablations, and an online A/B test on LinkedIn Feed marketing traffic. We also distill production lessons on causal training-data construction and cost and delivery control, which were critical to successful deployment. The end-to-end treatment policy delivered a statistically significant +7.20\% lift in the primary long-term-value metric, demonstrating the feasibility of production-scale causal optimization under business constraints.
Create a lesson
Related papers
How Model Growth, Recursion, and Boundary Operators Influence Scaling Exponents
Zixi Chen, Akshay Vegesna, Samip Dahal et al.
Evidence-Grounded Agentic Formulation Development in an Autonomous Laboratory
Michael M. Craig, Riley J. Hickman, Yingshan Ma et al.
Probabilistic Linear Explanations
Frederic Koriche, Jean-Marie Lagniez, Chi Tran
Double descent is the principle of least action
Congzhou M Sha
RLLBC-Lib: An Educational Code Library for Reinforcement Learning and Learning-Based Control
Bernd Frauenknecht, Emma Cramer, Artur Eisele et al.
Higher-order pruning of experts in mixture-of-experts language models
Alex M. Tseng, Prannay Kaul, Luca Zancato et al.