Pricing average price advertising options when underlying spot market prices are discontinuous

Advertising options have been recently studied as a special type of guaranteed contracts in online advertising, which are an alternative sales mechanism to real-time auctions. An advertising option is a contract which gives its buyer a right but not obligation to enter into transactions to purchase page views or link clicks at one or multiple pre-specified prices in a specific future period. Different from typical guaranteed contracts, the option buyer pays a lower upfront fee but can have greater flexibility and more control of advertising. Many studies on advertising options so far have been restricted to the situations where the option payoff is determined by the underlying spot market price at a specific time point and the price evolution over time is assumed to be continuous. The former leads to a biased calculation of option payoff and the latter is invalid empirically for many online advertising slots. This paper addresses these two limitations by proposing a new advertising option pricing framework. First, the option payoff is calculated based on an average price over a specific future period. Therefore, the option becomes path-dependent. The average price is measured by the power mean, which contains several existing option payoff functions as its special cases. Second, jump-diffusion stochastic models are used to describe the movement of the underlying spot market price, which incorporate several important statistical properties including jumps and spikes, non-normality, and absence of autocorrelations. A general option pricing algorithm is obtained based on Monte Carlo simulation. In addition, an explicit pricing formula is derived for the case when the option payoff is based on the geometric mean. This pricing formula is also a generalized version of several other option pricing models discussed in related studies.Comment: IEEE Transactions on Knowledge and Data Engineering, 201

Looking Beyond a Clever Narrative: Visual Context and Attention are Primary Drivers of Affect in Video Advertisements

Emotion evoked by an advertisement plays a key role in influencing brand recall and eventual consumer choices. Automatic ad affect recognition has several useful applications. However, the use of content-based feature representations does not give insights into how affect is modulated by aspects such as the ad scene setting, salient object attributes and their interactions. Neither do such approaches inform us on how humans prioritize visual information for ad understanding. Our work addresses these lacunae by decomposing video content into detected objects, coarse scene structure, object statistics and actively attended objects identified via eye-gaze. We measure the importance of each of these information channels by systematically incorporating related information into ad affect prediction models. Contrary to the popular notion that ad affect hinges on the narrative and the clever use of linguistic and social cues, we find that actively attended objects and the coarse scene structure better encode affective information as compared to individual scene objects or conspicuous background elements.Comment: Accepted for publication in the Proceedings of 20th ACM International Conference on Multimodal Interaction, Boulder, CO, US

G\mathcal{G}-softmax: Improving Intra-class Compactness and Inter-class Separability of Features

Intra-class compactness and inter-class separability are crucial indicators to measure the effectiveness of a model to produce discriminative features, where intra-class compactness indicates how close the features with the same label are to each other and inter-class separability indicates how far away the features with different labels are. In this work, we investigate intra-class compactness and inter-class separability of features learned by convolutional networks and propose a Gaussian-based softmax ($\mathcal{G}$-softmax) function that can effectively improve intra-class compactness and inter-class separability. The proposed function is simple to implement and can easily replace the softmax function. We evaluate the proposed $\mathcal{G}$-softmax function on classification datasets (i.e., CIFAR-10, CIFAR-100, and Tiny ImageNet) and on multi-label classification datasets (i.e., MS COCO and NUS-WIDE). The experimental results show that the proposed $\mathcal{G}$-softmax function improves the state-of-the-art models across all evaluated datasets. In addition, analysis of the intra-class compactness and inter-class separability demonstrates the advantages of the proposed function over the softmax function, which is consistent with the performance improvement. More importantly, we observe that high intra-class compactness and inter-class separability are linearly correlated to average precision on MS COCO and NUS-WIDE. This implies that improvement of intra-class compactness and inter-class separability would lead to improvement of average precision.Comment: 15 pages, published in TNNL

Video Storytelling: Textual Summaries for Events

Bridging vision and natural language is a longstanding goal in computer vision and multimedia research. While earlier works focus on generating a single-sentence description for visual content, recent works have studied paragraph generation. In this work, we introduce the problem of video storytelling, which aims at generating coherent and succinct stories for long videos. Video storytelling introduces new challenges, mainly due to the diversity of the story and the length and complexity of the video. We propose novel methods to address the challenges. First, we propose a context-aware framework for multimodal embedding learning, where we design a Residual Bidirectional Recurrent Neural Network to leverage contextual information from past and future. Second, we propose a Narrator model to discover the underlying storyline. The Narrator is formulated as a reinforcement learning agent which is trained by directly optimizing the textual metric of the generated story. We evaluate our method on the Video Story dataset, a new dataset that we have collected to enable the study. We compare our method with multiple state-of-the-art baselines, and show that our method achieves better performance, in terms of quantitative measures and user study.Comment: Published in IEEE Transactions on Multimedi

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

MM2RTB: bringing multimedia metrics to real-time bidding

In display advertising, users' online ad experiences are important for the advertising effectiveness. However, users have not been well accommodated in real-time bidding (RTB). This further influences their site visits and perception of the displayed banner ads. In this paper, we propose a novel computational framework which brings multimedia metrics, like the contextual relevance, the visual saliency and the ad memorability into RTB to improve the users' ad experiences as well as maintain the benefits of the publisher and the advertiser. We aim at developing a vigorous ecosystem by optimizing the trade-offs among all stakeholders. The framework considers the scenario of a webpage with multiple ad slots. Our experimental results show that the benefits of the advertiser and the user can be significantly improved if the publisher would slightly sacrifice his short-term revenue. The improved benefits will increase the advertising requests (demand) and the site visits (supply), which can further boost the publisher's revenue in the long run