Decision Focused Causal Learning for Direct Counterfactual Marketing Optimization

TL;DR

This paper introduces DFCL, a novel end-to-end framework that integrates causal learning with decision-focused optimization to improve marketing budget allocation, overcoming computational and practical challenges in real-world applications.

Contribution

The paper proposes a decision focused causal learning framework (DFCL) that addresses the challenges of applying decision-focused learning to stochastic, counterfactual marketing optimization problems.

Findings

DFCL outperforms state-of-the-art methods in offline and online tests.

DFCL has been successfully deployed in large-scale real-world marketing scenarios.

The framework effectively handles uncertainty and counterfactuals in marketing optimization.

Abstract

Marketing optimization plays an important role to enhance user engagement in online Internet platforms. Existing studies usually formulate this problem as a budget allocation problem and solve it by utilizing two fully decoupled stages, i.e., machine learning (ML) and operation research (OR). However, the learning objective in ML does not take account of the downstream optimization task in OR, which causes that the prediction accuracy in ML may be not positively related to the decision quality. Decision Focused Learning (DFL) integrates ML and OR into an end-to-end framework, which takes the objective of the downstream task as the decision loss function and guarantees the consistency of the optimization direction between ML and OR. However, deploying DFL in marketing is non-trivial due to multiple technological challenges. Firstly, the budget allocation problem in marketing is a 0-1 integer stochastic programming problem and the budget is uncertain and fluctuates a lot in real-world settings, which is beyond the general problem background in DFL. Secondly, the counterfactual in marketing causes that the decision loss cannot be directly computed and the optimal solution can never be obtained, both of which disable the common gradient-estimation approaches in DFL. Thirdly, the OR solver is called frequently to compute the decision loss during model training in DFL, which produces huge computational cost and cannot support large-scale training data. In this paper, we propose a decision focused causal learning framework (DFCL) for direct counterfactual marketing optimization, which overcomes the above technological challenges. Both offline experiments and online A/B testing demonstrate the effectiveness of DFCL over the state-of-the-art methods. Currently, DFCL has been deployed in several marketing scenarios in Meituan, one of the largest online food delivery platform in the world.