Combinatorial Problems in Online Advertising

Electronic commerce or eCommerce refers to the process of buying and selling of goods and services over the Internet. In fact, the Internet has completely transformed traditional media based advertising so much so that billions of dollars of advertising revenue is now flowing to search companies such as Microsoft, Yahoo! and Google. In addition, the new advertising landscape has opened up the advertising industry to all players, big and small. However, this transformation has led to a host of new problems faced by the search companies as they make decisions about how much to charge for advertisements, whose ads to display to users, and how to maximize their revenue. In this thesis we focus on an entire suite of problems motivated by the central question of "Which advertisement to display to which user?". Targeted advertisement happens when a user enters a relevant search query. The ads are usually displayed on the sides of the search result page. Internet advertising also takes place by displaying ads on the side of webpages with relevant content. While large advertisers (e.g. Coca Cola) pursue brand recognition by advertisement, small advertisers are happy with instant revenue as a result of a user following their ad and performing a desired action (e.g. making a purchase). Therefore, small advertisers are often happy to get any ad slot related to their ad while large advertisers prefer contracts that will guarantee that their ads will be delivered to enough number of desired users. We first focus on two problems that come up in the context of small advertisers. The first problem we consider deals with the allocation of ads to slots considering the fact that users enter search queries over a period of time, and as a result the slots become available gradually. We use a greedy method for allocation and show that the online ad allocation problem with a fixed distribution of queries over time can be modeled as maximizing a continuous non-decreasing submodular sequence function for which we can guarantee a solution with a factor of at least (1- 1/e) of the optimal. The second problem we consider is query rewriting problem in the context of keyword advertisement. This problem can be posed as a family of graph covering problems to maximize profit. We obtain constant-factor approximation algorithms for these covering problems under two sets of constraints and a realistic notion of ad benefit. We perform experiments on real data and show that our algorithms are capable of outperforming a competitive baseline algorithm in terms of the benefit due to rewrites. We next consider two problems related to premium customers, who need guaranteed delivery of a large number of ads for the purpose of brand recognition and would require signing a contract. In this context, we consider the allocation problem with the objective of maximizing either revenue or fairness. The problems considered in this thesis address just a few of the current challenges in e-Commerce and Internet Advertising. There are many interesting new problems arising in this field as the technology evolves and online-connectivity through interactive media and the internet become ubiquitous. We believe that this is one of the areas that will continue to receive greater attention by researchers in the near future

Optimal delivery in display advertising

In display advertising, a publisher targets a specific audience by displaying ads on content web pages. Because the publisher has little control over the supply of display opportunities, the actual supply of ads that it can sell is stochastic. We consider the problem of optimal ad delivery, where an advertiser requests a certain number of impressions to be displayed by the publisher over a certain time horizon. Time is divided into periods, and in the beginning of each period the publisher chooses a fraction of the still unrealized supply to allocate towards fulfilling the advertiser's demand. The goal is to be able to fulfill the demand at the end of the horizon with minimal costs incurred from penalties associated with shortage or over-delivery of ads. We describe optimal policies that are both simple in structure and easy to implement for several variations of this problem

On the theory of truthful and fair pricing for banner advertisements

We consider revenue maximization problem in banner advertisements under two fundamental concepts: Envy-freeness and truthfulness. Envy-freeness captures fairness requirement among buyers while truthfulness gives buyers the incentive to announce truthful private bids. A extension of envy-freeness named competitive equilibrium, which requires both envy-freeness and market clearance conditions, is also investigated. For truthfulness also called incentive compatible, we adapt Bayesian settings, where each buyer's private value is drawn independently from publicly known distributions. Therefore, the truthfulness we adopt is Bayesian incentive compatible mechanisms. Most of our results are positive. We study various settings of revenue maximizing problem e.g. competitive equilibrium and envy-free solution in relaxed demand, sharp demand and consecutive demand case; Bayesian incentive compatible mechanism in relaxed demand, sharp demand, budget constraints and consecutive demand cases. Our approach allows us to argue that these simple mechanisms give optimal or approximate-optimal revenue guarantee in a very robust manner

Optimal delivery in display advertising

In display advertising, a publisher targets a specific audience by displaying ads on content web pages. Because the publisher has little control over the supply of display opportunities, the actual supply of ads that it can sell is stochastic. We consider the problem of optimal ad delivery, where an advertiser requests a certain number of impressions to be displayed by the publisher over a certain time horizon. Time is divided into periods, and in the beginning of each period the publisher chooses a fraction of the still unrealized supply to allocate towards fulfilling the advertiser's demand. The goal is to be able to fulfill the demand at the end of the horizon with minimal costs incurred from penalties associated with shortage or over-delivery of ads. We describe optimal policies that are both simple in structure and easy to implement for several variations of this problem

Whole-Page Optimization and Submodular Welfare Maximization with Online Bidders

In the context of online ad serving, display ads may appear on different types of webpages, where each page includes several ad slots and therefore multiple ads can be shown on each page. The set of ads that can be assigned to ad slots of the same page needs to satisfy various prespecified constraints including exclusion constraints, diversity constraints, and the like. Upon arrival of a user, the ad serving system needs to allocate a set of ads to the current webpage respecting these per-page allocation constraints. Previous slot-based settings ignore the important concept of a page and may lead to highly suboptimal results in general. In this article, motivated by these applications in display advertising and inspired by the submodular welfare maximization problem with online bidders, we study a general class of page-based ad allocation problems, present the first (tight) constant-factor approximation algorithms for these problems, and confirm the performance of our algorithms experimentally on real-world datasets. A key technical ingredient of our results is a novel primal-dual analysis for handling free disposal, which updates dual variables using a “level function” instead of a single level and unifies with previous analyses of related problems. This new analysis method allows us to handle arbitrarily complicated allocation constraints for each page. Our main result is an algorithm that achieves a 1 &minus frac 1 e &minus o(1)-competitive ratio. Moreover, our experiments on real-world datasets show significant improvements of our page-based algorithms compared to the slot-based algorithms. Finally, we observe that our problem is closely related to the submodular welfare maximization (SWM) problem. In particular, we introduce a variant of the SWM problem with online bidders and show how to solve this problem using our algorithm for whole-page optimization.postprin

Information Gathering with Peers: Submodular Optimization with Peer-Prediction Constraints

We study a problem of optimal information gathering from multiple data providers that need to be incentivized to provide accurate information. This problem arises in many real world applications that rely on crowdsourced data sets, but where the process of obtaining data is costly. A notable example of such a scenario is crowd sensing. To this end, we formulate the problem of optimal information gathering as maximization of a submodular function under a budget constraint, where the budget represents the total expected payment to data providers. Contrary to the existing approaches, we base our payments on incentives for accuracy and truthfulness, in particular, {\em peer-prediction} methods that score each of the selected data providers against its best peer, while ensuring that the minimum expected payment is above a given threshold. We first show that the problem at hand is hard to approximate within a constant factor that is not dependent on the properties of the payment function. However, for given topological and analytical properties of the instance, we construct two greedy algorithms, respectively called PPCGreedy and PPCGreedyIter, and establish theoretical bounds on their performance w.r.t. the optimal solution. Finally, we evaluate our methods using a realistic crowd sensing testbed.Comment: Longer version of AAAI'18 pape