Bi-Level Decision-Focused Causal Learning for Large-Scale Marketing Optimization: Bridging Observational and Experimental Data

Hao Zhou (Bytedance AI Lab) · Wei Lin (ELLIS Unit Linz & LIT AI Lab, JKU) · Guihai Chen (Shanghai Jiao Tong University) · Shuli Zhang (nanjing university) · Jiaqi Zheng (Nanjing University) · Guibin Jiang (Meituan) · Cheng Bing (Shanghai Jiaotong University)
bi-level optimizationbias-variance dilemmacausal learningdecision qualityexperimental dataimplicit differentiationmarketing strategiesobservational dataprediction-decision misalignmentrandomized controlled trialsresource allocationsurrogate loss functionstreatment effectsunbiased estimatoruser retention

Online Internet platforms require sophisticated marketing strategies to optimize user retention and platform revenue — a classical resource allocation problem. Traditional solutions adopt a two-stage pipeline: machine learning (ML) for predicting individual treatment effects to marketing actions, followed by operations research (OR) optimization for decision-making. This paradigm presents two fundamental technical challenges. First, the prediction-decision misalignment: Conventional ML methods focus solely on prediction accuracy without considering downstream optimization objectives, leading to improved predictive metrics that fail to translate to better decisions. Second, the bias-variance dilemma: Observational data suffers from multiple biases (e.g., selection bias, position bias), while experimental data (e.g., randomized controlled trials), though unbiased, is typically scarce and costly