  In ecommerce platform, users will be less likely to use organic search if
sponsored search shows them unexpected advertising items, which will be a
hidden cost for the platform. In order to incorporate the hidden cost into
auction mechanism which helps create positive growth for the platform, we turn
to a reserve price design to decide whether we sell the traffic, as well as
build healthy relationships between revenue and user experience. We propose a
dynamic reserve price design framework to sell traffic more efficiently with
minimal cost of user experience while keeping long term incentives to the
advertisers to reveal their valuations truthfully. A distributed algorithm is
also proposed to compute the reserve price with billion scale data in the
production environment. Experiments with offline evaluations and online AB
testing demonstrate that it is a simple and efficient method to be suitably
used in industrial production. It has already been fully deployed in the
production of Lazada sponsored search.
