arXiv — Machine Learning · · 3 min read

From Prediction to Incrementality: Causal Optimization for Large-Scale Targeting and Recommendation

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Computer Science > Machine Learning

arXiv:2608.10182 (cs)
[Submitted on 10 Aug 2026]

Title:From Prediction to Incrementality: Causal Optimization for Large-Scale Targeting and Recommendation

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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.
Subjects: Machine Learning (cs.LG); Artificial Intelligence (cs.AI)
Cite as: arXiv:2608.10182 [cs.LG]
  (or arXiv:2608.10182v1 [cs.LG] for this version)
  https://doi.org/10.48550/arXiv.2608.10182
arXiv-issued DOI via DataCite (pending registration)

Submission history

From: Changshuai Wei [view email]
[v1] Mon, 10 Aug 2026 19:54:08 UTC (2,018 KB)
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