Design Ad Click Prediction

Frame the Problem: A Prediction With a Price Tag

"Design the ads system" uses retrieval and ranking, with additional auction, budget, and billing requirements.

Predictions influence which ads are shown and the estimated value of each opportunity.

When a page loads, an auction may choose among eligible ads. In a simplified cost-per-click design, an ad's expected value per impression is its bid multiplied by its predicted click probability. Real auction rules may include quality factors, reserves, and other constraints.