Against Opacity: Explainable AI and Large Language Models for Effective Digital Advertising
Digital advertising platforms (e.g., Meta Ads) suffer from algorithmic opacity, hindering advertisers’ understanding of audience targeting, pricing mechanisms, and ad relevance—thereby impeding data-driven decision-making. To address this, we propose SODA: the first explainable advertising analytics framework integrating multimodal text-image models with large language models (LLMs). Our method introduces a natural-language–based interactive explanation interface tailored for non-technical marketing professionals, enabling automated competitive ad summarization, attribution analysis, and click-through rate (CTR) prediction. By synergistically combining eXplainable AI (XAI) techniques with natural language generation and understanding, SODA enhances predictive accuracy while delivering actionable, trustworthy AI-assisted insights. Evaluated in real-world deployment scenarios, SODA significantly improves interpretability without compromising performance, empowering marketers to make informed, auditable decisions grounded in transparent model reasoning.