2,084 research outputs found
Multi-keyword multi-click advertisement option contracts for sponsored search
In sponsored search, advertisement (abbreviated ad) slots are usually sold by
a search engine to an advertiser through an auction mechanism in which
advertisers bid on keywords. In theory, auction mechanisms have many desirable
economic properties. However, keyword auctions have a number of limitations
including: the uncertainty in payment prices for advertisers; the volatility in
the search engine's revenue; and the weak loyalty between advertiser and search
engine. In this paper we propose a special ad option that alleviates these
problems. In our proposal, an advertiser can purchase an option from a search
engine in advance by paying an upfront fee, known as the option price. He then
has the right, but no obligation, to purchase among the pre-specified set of
keywords at the fixed cost-per-clicks (CPCs) for a specified number of clicks
in a specified period of time. The proposed option is closely related to a
special exotic option in finance that contains multiple underlying assets
(multi-keyword) and is also multi-exercisable (multi-click). This novel
structure has many benefits: advertisers can have reduced uncertainty in
advertising; the search engine can improve the advertisers' loyalty as well as
obtain a stable and increased expected revenue over time. Since the proposed ad
option can be implemented in conjunction with the existing keyword auctions,
the option price and corresponding fixed CPCs must be set such that there is no
arbitrage between the two markets. Option pricing methods are discussed and our
experimental results validate the development. Compared to keyword auctions, a
search engine can have an increased expected revenue by selling an ad option.Comment: Chen, Bowei and Wang, Jun and Cox, Ingemar J. and Kankanhalli, Mohan
S. (2015) Multi-keyword multi-click advertisement option contracts for
sponsored search. ACM Transactions on Intelligent Systems and Technology, 7
(1). pp. 1-29. ISSN: 2157-690
Managing Risk of Bidding in Display Advertising
In this paper, we deal with the uncertainty of bidding for display
advertising. Similar to the financial market trading, real-time bidding (RTB)
based display advertising employs an auction mechanism to automate the
impression level media buying; and running a campaign is no different than an
investment of acquiring new customers in return for obtaining additional
converted sales. Thus, how to optimally bid on an ad impression to drive the
profit and return-on-investment becomes essential. However, the large
randomness of the user behaviors and the cost uncertainty caused by the auction
competition may result in a significant risk from the campaign performance
estimation. In this paper, we explicitly model the uncertainty of user
click-through rate estimation and auction competition to capture the risk. We
borrow an idea from finance and derive the value at risk for each ad display
opportunity. Our formulation results in two risk-aware bidding strategies that
penalize risky ad impressions and focus more on the ones with higher expected
return and lower risk. The empirical study on real-world data demonstrates the
effectiveness of our proposed risk-aware bidding strategies: yielding profit
gains of 15.4% in offline experiments and up to 17.5% in an online A/B test on
a commercial RTB platform over the widely applied bidding strategies
Supply Side Optimisation in Online Display Advertising
On the Internet there are publishers (the supply side) who provide free contents (e.g., news) and services (e.g., email) to attract users. Publishers get paid by selling ad displaying opportunities (i.e., impressions) to advertisers. Advertisers then sell products to users who are converted by ads. Better supply side revenue allows more free content and services to be created, thus, benefiting the entire online advertising ecosystem. This thesis addresses several optimisation problems for the supply side. When a publisher creates an ad-supported website, he needs to decide the percentage of ads first. The thesis reports a large-scale empirical study of Internet ad density over past seven years, then presents a model that includes many factors, especially the competition among similar publishers, and gives an optimal dynamic ad density that generates the maximum revenue over time. This study also unveils the tragedy of the commons in online advertising where users' attention has been overgrazed which results in a global sub-optimum. After deciding the ad density, the publisher retrieves ads from various sources, including contracts, ad networks, and ad exchanges. This forms an exploration-exploitation problem when ad sources are typically unknown before trail. This problem is modelled using Partially Observable Markov Decision Process (POMDP), and the exploration efficiency is increased by utilising the correlation of ads. The proposed method reports 23.4% better than the best performing baseline in the real-world data based experiments. Since some ad networks allow (or expect) an input of keywords, the thesis also presents an adaptive keyword extraction system using BM25F algorithm and the multi-armed bandits model. This system has been tested by a domain service provider in crowdsourcing based experiments. If the publisher selects a Real-Time Bidding (RTB) ad source, he can use reserve price to manipulate auctions for better payoff. This thesis proposes a simplified game model that considers the competition between seller and buyer to be one-shot instead of repeated and gives heuristics that can be easily implemented. The model has been evaluated in a production environment and reported 12.3% average increase of revenue. The documentation of a prototype system for reserve price optimisation is also presented in the appendix of the thesis
Display Advertising with Real-Time Bidding (RTB) and Behavioural Targeting
The most significant progress in recent years in online display advertising is what is known as the Real-Time Bidding (RTB) mechanism to buy and sell ads. RTB essentially facilitates buying an individual ad impression in real time while it is still being generated from a userâs visit. RTB not only scales up the buying process by aggregating a large amount of available inventories across publishers but, most importantly, enables direct targeting of individual users. As such, RTB has fundamentally changed the landscape of digital marketing. Scientifically, the demand for automation, integration and optimisation in RTB also brings new research opportunities in information retrieval, data mining, machine learning and other related fields. In this monograph, an overview is given of the fundamental infrastructure, algorithms, and technical solutions of this new frontier of computational advertising. The covered topics include user response prediction, bid landscape forecasting, bidding algorithms, revenue optimisation, statistical arbitrage, dynamic pricing, and ad fraud detection
Display Advertising with Real-Time Bidding (RTB) and Behavioural Targeting
The most significant progress in recent years in online display advertising is what is known as the Real-Time Bidding (RTB) mechanism to buy and sell ads. RTB essentially facilitates buying an individual ad impression in real time while it is still being generated from a userâs visit. RTB not only scales up the buying process by aggregating a large amount of available inventories across publishers but, most importantly, enables direct targeting of individual users. As such, RTB has fundamentally changed the landscape of digital marketing. Scientifically, the demand for automation, integration and optimisation in RTB also brings new research opportunities in information retrieval, data mining, machine learning and other related fields. In this monograph, an overview is given of the fundamental infrastructure, algorithms, and technical solutions of this new frontier of computational advertising. The covered topics include user response prediction, bid landscape forecasting, bidding algorithms, revenue optimisation, statistical arbitrage, dynamic pricing, and ad fraud detection
A survey of the role of viewability within the online advertising ecosystem
Š 2021 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other uses, in any current or future media, including reprinting/republishing this material for advertising or promotional purposes,creating new collective works, for resale or redistribution to servers or lists, or reuse of any copyrighted component of this work in other works.Within the online advertising ecosystem, viewability is defined as the metric that measures if an ad impression had the chance of being viewable by a potential consumer. Although this metric has been presented as a potential game-changer within the ad industry, it has not been fully adopted by the stakeholders, mainly due to disagreement between the different parties on the standards to implement and measure it, and its potential benefits and drawbacks. In this study, we present a survey of the role that viewability can have on the main challenges of the online advertising ecosystem depicting the main applications, benefits and issues. With this objective, we provide an overall picture of how viewability can fit within the ecosystem, which can help the different stakeholders to work on its adoption, integration and establishing a research agenda.This work was supported by the Plan de Doctorados Industriales de la SecretarĂa de Universidades e InvestigaciĂłn del Departamento de
Empresa y Conocimiento de la Generalitat de Catalunya under the Grant 2018-DI-059 and by ExoClick. Furthermore, this work received
support from the Fellowship through ââla Caixaââ Foundation under Grant ID100010434, from the European Unionâs Horizon 2020
Research and Innovation Program through Marie SkĹodowska-Curie Grant under Agreement 847648, from the Fellowship under Grant
CF/BQ/PR20/11770009, from the Spanish Ministry of Economy and Competitiveness through Juan de la Cierva FormaciĂłn Program under
Grant FJCI-2017-34926 and from the Spanish Government under Grant PID2020-113795RB-C31 ââCOMPROMISEââ.Peer ReviewedPostprint (published version
Taking Stock of the Digital Revolution: A Critical Analysis and Agenda for Digital, Social Media, and Mobile Marketing Research
Marketing has been revolutionized due to the rise of digital media and new forms of electronic communication. In response, academic researchers have attempted to explain consumer- and firm-related phenomena related to digital, social media, and mobile marketing (DSMM). This paper presents a critical historical analysis of, and forward-looking agenda for, this work. First, we assess marketingâs contribution to understanding DSMM since 2000. Extant research falls under three eras, and a fourth era currently underway. Era 1 focused on digital tools and platforms as consumer and marketer decision aids. Era 2 studied online communications channels (e.g., online forums) as word of mouth marketing âlaboratories,â capturing the potential of DSMM for social information transmission. Era 3 embraced the notion of âconnected consumersâ by considering various antecedents and consequences of socially interconnected consumers in marketplaces. Era 4, currently starting, considers mobile marketing and brings psychological and social theories to bear on emergent DSMM issues. Second, we critique the DSMM literature and advance a series of recommendations for future research. While we find much to applaud, we argue that several problems limit the relevance of this research moving forward and suggest ways to alleviate these concerns moving forward
Viewability prediction for display advertising
As a massive industry, display advertising delivers advertisersâ marketing messages to attract customers through graphic banners on webpages. Display advertising is also the most essential revenue source of online publishers. Currently, advertisers are charged by user response or ad serving. However, recent studies show that users barely click or convert display ads. Moreover, about half of the ads are actually never seen by users. In this case, advertisers cannot enhance their brand awareness and increase return on investment. Publishers also lose much revenue. Therefore, the ad pricing standards are shifting to a new model: ad impressions are paid if they are viewable, not just being responded to or served. The Media Ratings Councilâs standard for a viewable display impression is a minimum of 50% of pixels in view for a minimum of one second. To implement viewable impressions as pricing currency, ad viewability should be accurately predicted. Ad viewability prediction can improve the performance of guaranteed ad delivery, real-time bidding, as well as recommender systems.
This research is the first to address this important problem of ad viewability prediction. Inspired by the standard definition of viewability, this study proposes to solve the problem from two angles: 1) scrolling behavior and 2) dwell time. In the first phase, ad viewability is predicted by estimating the probability that a user will scroll to the page depth where an ad is located in a specific page view. Two novel probabilistic latent class models (PLC) are proposed. The first PLC model computes constant use and page memberships offline, while the second PLC model computes dynamic memberships in real-time. In the second phase, ad viewability is predicted by estimating the probability that the page depth will be in-view for certain seconds. Machine learning models based on Factorization Machines (FM) and Recurrent Neural Network (RNN) with Long Short Term Memory (LSTM) are proposed to predict the viewability of any given page depth in a specific page view. The experiments show that the proposed algorithms significantly outperform the comparison systems
Selling The American People: Data, Technology, And The Calculated Transformation Of Advertising
This dissertation tells the history of a future imagined by advertisers as they interpreted and constructed the affordances of digital information technologies. It looks at how related efforts to predict and influence consumer habits and to package and sell audience attention helped orchestrate the marriage of behavioral science and big-data analytics that defines digital marketing today. My research shows how advertising and commercial media industries rebuilt their information infrastructures around electronic data processing, networked computing, and elaborate forms of quantitative analysis, beginning in the 1950s. Advertisers, agencies, and media companies accommodated their activities to increasingly calculated ways of thinking about consumers and audiences, and to more statistical and computational forms of judgement. Responding to existing priorities and challenges, and to perceived opportunities to move closer to underlying ambitions, a variety of actors envisioned the future of marketing and media through a set of possibilities that became central to the commercialization of digital communications. People involved in the television business today use the term âadvanced advertisingâ to describe a set of abilities at the heart of internet and mobile marketing: programmability (automation), addressability (personalization), shoppability (interactive commerce), and accountability (measurement and analytics). In contrast to the perception that these are unique elements of a ânewâ digital media environment that emerged in the mid-1990s, I find that these themes appear conspicuously in designs for using and shaping information technologies over the course of the past six decades. I use these potential abilities as entry points for analyzing a broader shift in advertising and commercial media that began well before the popular arrival of the internet. Across the second half of the twentieth century, the advertising industry, a major cultural and economic institution, was reconstructed around the goal of expanding its abilities to account for and calculate more of social and personal life. This transformation sits at an intersection where the processing of data, the processing of commerce, and the processing of culture collide
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