Optimal Delivery of Sponsored Search Advertisements Subject to Budget Constraints
Source:
EC'07, ACM Press, San Diego, CA, p.272-278 (2007)
ISBN:
978-I-59593-653-0
Keywords:
column generation, sponsored search, budgets, advertising
Abstract:
We discuss an auction framework in which sponsored search
advertisements are delivered in response to queries. In practice,
the presence of bidder budgets can have a significant
impact on the ad delivery process. We propose an approach
based on linear programming which takes bidder budgets
into account, and uses them in conjunction with forecasting
of query frequencies, and pricing and ranking schemes, to
optimize ad delivery. Simulations show significant improvements
in revenue and efficiency.
