Feedback Control for Small Budget Pacing

Abstract: Budget pacing is critical in online advertising to align spend with campaign goals under dynamic auctions. Existing pacing methods often rely on ad-hoc parameter tuning, which can be unstable and inefficient. We propose a principled controller that combines bucketized hysteresis with proportional feedback to provide stable and adaptive spend control. Our method provides a framework and analysis for parameter selection that enables accurate tracking of desired spend rates across campaigns. Experiments in real-world auctions demonstrate significant improvements in pacing accuracy and delivery consistency, reducing pacing error by 13% and $\lambda$-volatility by 54% compared to baseline method. By bridging control theory with advertising systems, our approach offers a scalable and reliable solution for budget pacing, with particular benefits for small-budget campaigns.