Budget allocation in competitive search advertisements

Yanwu Yang, Juanjuan Li, Jie Zhang, Dajun Zeng

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

1 Citation (Scopus)

Abstract

This paper proposes a novel budget model based on differential game to deal with budget allocation in competitive search advertisements under a finite time horizon, with consideration of budget constraints. We extend the advertising response function with the dynamical advertising effort u and quality score q to fit search advertising scenarios. We also discuss Nash equilibriums of our model, and study some desirable properties of two kinds of equilibriums in the case with budget constraints: "budget-stable" open-loop Nash equilibrium (BS-OLNE) and "budget-unstable" open-loop Nash equilibrium (BUS-OLNE). We have evaluated our budget model and identified properties with computational experiments. Experimental results show that budget strategies with dynamical advertising elasticity are superior to those with fixed one and our findings on OLNEs are helpful for advertisers to make budget decisions.

Original languageEnglish (US)
Title of host publicationProceedings - 21st Workshop on Information Technologies and Systems, WITS 2011
PublisherJindal School of Management, JSOM
Pages219-220
Number of pages2
StatePublished - 2011
Event21st Workshop on Information Technologies and Systems, WITS 2011 - Shanghai, China
Duration: Dec 3 2011Dec 4 2011

Other

Other21st Workshop on Information Technologies and Systems, WITS 2011
CountryChina
CityShanghai
Period12/3/1112/4/11

Fingerprint

Marketing
Elasticity
Experiments

Keywords

  • Advertising competition
  • Budget optimization
  • Differential game
  • Search auctions

ASJC Scopus subject areas

  • Information Systems

Cite this

Yang, Y., Li, J., Zhang, J., & Zeng, D. (2011). Budget allocation in competitive search advertisements. In Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011 (pp. 219-220). Jindal School of Management, JSOM.

Budget allocation in competitive search advertisements. / Yang, Yanwu; Li, Juanjuan; Zhang, Jie; Zeng, Dajun.

Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011. Jindal School of Management, JSOM, 2011. p. 219-220.

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

Yang, Y, Li, J, Zhang, J & Zeng, D 2011, Budget allocation in competitive search advertisements. in Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011. Jindal School of Management, JSOM, pp. 219-220, 21st Workshop on Information Technologies and Systems, WITS 2011, Shanghai, China, 12/3/11.
Yang Y, Li J, Zhang J, Zeng D. Budget allocation in competitive search advertisements. In Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011. Jindal School of Management, JSOM. 2011. p. 219-220
Yang, Yanwu ; Li, Juanjuan ; Zhang, Jie ; Zeng, Dajun. / Budget allocation in competitive search advertisements. Proceedings - 21st Workshop on Information Technologies and Systems, WITS 2011. Jindal School of Management, JSOM, 2011. pp. 219-220
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