Comparing predicted prices in auctions for online advertising |
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Authors: | Eric Bax Anand Kuratti |
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Institution: | a Yahoo! Marketplace Architecture, 3333 Empire Blvd., Burbank, CA 91504, USAb Yahoo! Software Development India Pvt. Ltd., Torrey Pines, Embassy Golflink Business Parks, Off Koramangala-Indiranagar, Intermediate Ring Road, 560 071, Indiac Yahoo! Research, 3333 Empire Blvd., Burbank, CA 91504, USAd Purdue University 100 S. Grant St. West Lafayette, IN 47907, USA |
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Abstract: | Online publishers sell opportunities to show ads. Some advertisers pay only if their ad elicits a user response. Publishers estimate response rates for ads in order to estimate expected revenues from showing the ads. Then publishers select ads that maximize estimated expected revenue.By taking a maximum among estimates, publishers inadvertently select ads based on a combination of actual expected revenue and inaccurate estimation of expected revenue. Publishers can increase actual expected revenue by selecting ads to maximize a combination of estimated expected revenue and estimation accuracy. |
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Keywords: | C13 C44 C45 D81 D84 |
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