Paper Info
Title
Selling futures online advertising slots via option contracts
Abstract
Many online advertising slots are sold through bidding mechanisms by publishers and search engines. Highly affected by the dual force of supply and demand, the prices of advertising slots vary significantly over time. This then influences the businesses whose major revenues are driven by online advertising, particularly for publishers and search engines. To address the problem, we propose to sell the future advertising slots via option contracts (also called ad options). The ad option can give its buyer the right to buy the future advertising slots at a prefixed price. The pricing model of ad options is developed in order to reduce the volatility of the income of publishers or search engines. Our experimental results confirm the validity of ad options and the embedded risk management mechanisms.
Year
DOI
Venue
2012
10.1145/2187980.2188160
WWW (Companion Volume)
Keywords
Field
DocType
online advertising,option contract,dual force,bidding mechanism,embedded risk management mechanism,future advertising slot,search engine,online advertising slot,advertising slot,futures online advertising slot,ad option,risk management,supply and demand,algorithms
Revenue,World Wide Web,Advertising,Computer science,Futures contract,Online advertising,Risk management,Right to Buy,Supply and demand,Volatility (finance),Bidding
Conference
Citations 
PageRank 
References 
11
0.66
1
Authors
2
Name
Order
Citations
PageRank
Jun Wang12514138.37
Bo-Wei Chen226230.12