Boundary value problems for stochastic budget distribution in search advertisements

Rui Qin, Yanwu Yang, Feiyue Wang, Daniel Zeng

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

In sponsored search auctions, advertisers have to distribute the budget to a series of temporal slots in order to maximize the expected revenue. There exists a budget demand for each temporal slot, which can not be known exactly by the advertiser due to some uncertainties in the search marketing environments. The estimation of the value range of budget demand in a temporal slot seriously affects the advertising performance. In this paper we study the effect of the value range on the revenue and conduct some experiments to validate our model and identified properties with the real-world data collected from practical advertising campaigns. Experimental results show that, under a certain condition, (a) the higher estimation of the upper bound and the lower bound might increase the expected revenue, and (b) the expected revenue is positively proportional to the mean value of the value range and is negatively proportional to the size.

Original languageEnglish (US)
Title of host publicationProceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013
Pages225-230
Number of pages6
DOIs
StatePublished - Oct 31 2013
Event2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013 - Dongguan, China
Duration: Jul 28 2013Jul 30 2013

Publication series

NameProceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013

Other

Other2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013
CountryChina
CityDongguan
Period7/28/137/30/13

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Keywords

  • budget constraints
  • budget demand
  • budget distribution
  • search advertisement
  • stochastic strategy

ASJC Scopus subject areas

  • Management of Technology and Innovation
  • Information Systems

Cite this

Qin, R., Yang, Y., Wang, F., & Zeng, D. (2013). Boundary value problems for stochastic budget distribution in search advertisements. In Proceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013 (pp. 225-230). [6611414] (Proceedings of 2013 IEEE International Conference on Service Operations and Logistics, and Informatics, SOLI 2013). https://doi.org/10.1109/SOLI.2013.6611414