Title | ||
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Optimal Keyword Bids in Search-Based Advertising with Stochastic Advertisement Positions. |
Abstract | ||
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US expenditures on search-based advertising exceeded $12 billion in 2010. Advertisers bid for keywords, where bid price determines ad placement, affecting click-through and conversion rates. Advertisers must select keywords, allocating each a proportion of their fixed daily budget. In this paper, we construct a stochastic model for the selection and allocation process. We provide analytical results for the single-keyword problem and examine the multiple-keyword problem numerically. We investigate trade-offs between keywords given varying levels of risk and return. We show the implications of enforcing a probabilistic budget constraint. Our paper provides a critical analysis of the advertiser’s problem that may guide future research. |
Year | DOI | Venue |
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2012 | 10.1007/s10957-011-9886-3 | J. Optimization Theory and Applications |
Keywords | Field | DocType |
Search-based advertising, Budget optimization, Probabilistic models | Risk–return spectrum,Mathematical optimization,Budget constraint,Advertising,Stochastic modelling,Probabilistic logic,Mathematics,Bid price | Journal |
Volume | Issue | ISSN |
152 | 1 | 1573-2878 |
Citations | PageRank | References |
3 | 0.38 | 9 |
Authors | ||
3 |
Name | Order | Citations | PageRank |
---|---|---|---|
Susan Cholette | 1 | 10 | 1.93 |
Ozgur Ozluk | 2 | 56 | 8.92 |
Mahmut Parlar | 3 | 281 | 33.65 |