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We study autobidding ad auctions with user costs, where each bidder isvalue-maximizing subject to a return-over-investment (ROI) constraint, and theseller aims to maximize the social welfare taking into consideration the user'scost of viewing an ad. We show that in the worst case, the approximation ratioof social welfare by running the vanilla VCG auctions with user costs could asbad as 0. To improve the performance of VCG, We propose a new variant of VCGbased on properly chosen cost multipliers, and prove that there existauction-dependent and bidder-dependent cost multipliers that guaranteeapproximation ratios of 1/2 and 1/4 respectively in terms of the socialwelfare.

Autobidding Auctions in the Presence of User Costs