Analyzing and testing viewability methods in an advertising network

Many of the current online businesses base completely their revenue models in earnings from online advertisement. A problematic fact is that according to recent studies more than half of display ads are not being detected as viewable. The International Advertising Bureau (IAB) has defined a viewable impression as an impression that at least 50% of its pixels are rendered in the viewport during at least one continuous second. Although there is agreement on this definition for measuring viewable impressions in the industry, there is no systematic methodologies on how it should be implemented or the trustworthiness of these methods. In fact, the Media Rating Council (MRC) announced that there are inconsistencies across multiple reports attempting to measure this metric. In order to understand the magnitude of the problem, we conduct an analysis of different methods to track viewable impressions. Then, we test a subset of geometric and strong interaction methods in a webpage registered in the worldwide ad-network ExoClick, which currently serves over 7 billion geo-targeted ads a day to a global network of 65000 web/mobile publisher platforms. We find that the Intersection Observer API is the method that detects more viewable impressions given its robustness towards the technological constraints that face the rest of implementations available. The motivation of this work is to better understand the limitations and advantages of such methods, which can have an impact at a standardisation level in online advertising industry, as well as to provide guidelines for future research based on the lessons learned.This work was possible thanks to the support of “Plan de Doctorados Industriales de la Secretaría de Universidades e Investigación del Departamento de Empresa y Conocimiento de la Generalitat de Catalunya” and the Spanish Ministry of Economy and Competitiveness through the Juan de la Cierva Formación program (FJCI-2017-34926). We also want to thank ExoClick for their support in conducting thisresearchPeer ReviewedPostprint (published version

A revenue-maximizing bidding strategy for demand-side platforms

In real-time bidding (RTB) systems for display advertising, a demand-side platform (DSP) serves as an agent for advertisers and plays an important role in competing for online advertising spaces by placing proper bidding prices. A critical function of the DSP is formulating proper bidding strategies to maximize key performance indicators, such as the number of clicks and conversions. However, many small and medium-sized advertisers' main goal is to maximize revenue with an acceptable return on investment (ROI), rather than simply increase clicks or conversions. Most existing approaches are inapplicable of satisfying the revenue-maximizing goals directly. To solve this problem, we first theoretically analyze the relationships among the conversion rate, ROI, and ad cost, and how they affect revenue. By doing so, we reveal that it is a challenge to increase revenue by relying solely on improving ROI without considering the impact of the ad cost. Based on this insight, the maximal revenue (MR) bidding strategy is proposed to maximize revenue by maximizing the ad cost with a desirable ROI constraint. Unlike previous studies, the proposed MR first distinguishes bid prices from ad costs explicitly, which makes it more applicable to the real second-price auction (GSP) auction mechanism in RTB systems. Then, the winning function is empirically defined in the form of tanh that provides a promising solution for estimating ad costs by jointly considering ad costs with the winning function. The experimental results based on two real-world public datasets demonstrate that the MR significantly outperforms five state-of-the-art models in terms of both revenue and ROI.Published versio