Bidding on Keyword Auctions: Advertiser’s Perspective

Anurag Garg, Soohyun Cho, Haldun Aytug

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

Abstract

We formulate an advertiser's bidding problem as a profit maximization problem in which the advertiser has to decide on how much to bid on each keyword subject to a budget, given that she can only observe her bid, her rank, the search frequency and the click frequency. We assume that the other advertisers' bids are i.i.d. random variables. We discuss how to determine a bid that will maximize expected profits when the search traffic for each keyword is generated by an independent Poisson process. We provide a formulation and discuss several properties of the problem.

Original languageEnglish (US)
Title of host publication42nd International Conference on Information Systems, ICIS 2021 TREOs
Subtitle of host publication"Building Sustainability and Resilience with IS: A Call for Action"
PublisherAssociation for Information Systems
ISBN (Electronic)9781713893608
StatePublished - 2021
Event42nd International Conference on Information Systems: Building Sustainability and Resilience with IS: A Call for Action, ICIS 2021 TREOs - Austin, United States
Duration: Dec 12 2021Dec 15 2021

Publication series

Name42nd International Conference on Information Systems, ICIS 2021 TREOs: "Building Sustainability and Resilience with IS: A Call for Action"

Conference

Conference42nd International Conference on Information Systems: Building Sustainability and Resilience with IS: A Call for Action, ICIS 2021 TREOs
Country/TerritoryUnited States
CityAustin
Period12/12/2112/15/21

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Information Systems

Keywords

  • keyword auction
  • Sponsored search
  • stochastic optimization

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