Yield optimization of display advertising with Ad exchange

Management Science

Volumn 60, Issue 12, 2014, Pages 2886-2907

  Balseiro, Santiago R ^a   Feldman, Jon ^b   Mirrokni, Vahab ^b   Muthukrishnan, S ^b  

^a DUKE UNIVERSITY   (United States)

^b GOOGLE INC   (United States)

Author keywords

Dynamic programming optimal control; Internet advertising; Revenue management

Indexed keywords

ECONOMIC AND SOCIAL EFFECTS; MARKETING; PARETO PRINCIPLE; QUALITY CONTROL; STOCHASTIC CONTROL SYSTEMS; STOCHASTIC SYSTEMS;

ASYMPTOTIC OPTIMALITY; COMBINED OPTIMIZATION PROBLEM; DISPLAY ADVERTISINGS; INTERNET ADVERTISING; JOINT DISTRIBUTIONS; OPTIMAL CONTROLS; REVENUE MANAGEMENT; YIELD OPTIMIZATION;

DYNAMIC PROGRAMMING;

EID: 84918590614     PISSN: 00251909     EISSN: 15265501     Source Type: Journal    
DOI: 10.1287/mnsc.2014.2017     Document Type: Article

References (33)

1. Agrawal S, Wang Z, Ye Y (2014) A dynamic near-optimal algorithm for online linear programming. Oper. Res. 62(4):876-890.
2. Alaei S, Arcaute E, Khuller S, Ma W, Malekian A, Tomlin J (2009) Online allocation of display advertisements subject to advanced sales contracts. Proc. Third Internat. Workshop on Data Mining and Audience Intelligence for Advertising, ADKDD'09 (ACM, New York), 69-77.
3. Araman V, Fridgeirsdottir K (2011) Cost-per-impression pricing and campaign delivery for online display advertising. Working paper, American University of Beirut, Beirut, Lebanon.
4. Araman V, Popescu I (2010) Media revenue management with audience uncertainty: Balancing upfront and spot market sales. Manufacturing Service Oper. Management 12(2):190-212.
5. Aven T (1985) Upper (lower) bounds on the mean of the maximum (minimum) of a number of random variables. J. Appl. Probab. 22(3):723-728.
6. Boyd S, Mutapcic A (2008) Stochastic subgradient methods. Notes for EE364b, Stanford University, Winter 2006-07.
7. Boyd S, Vandenberghe L (2009) Convex Optimization (Cambridge University Press, New York).
8. Chen Y-J (2011) Optimal dynamic auctions for display advertising. Working paper, University of California, Berkeley, Berkeley.
9. Devanur NR, Hayes TP (2009) The AdWords problem: Online keyword matching with budgeted bidders under random permutations. Proc. 10th ACM Conf. Electronic Commerce. EC'09 (ACM, New York), 71-78.
10. Feldman J, Henzinger M, Korula N, Mirrokni VS, Stein C (2010) Online stochastic packing applied to display ad allocation. Proc. 18th Annual Eur. Conf. Algorithms: Part I. ESA'10 (Springer, Berlin), 182-194.
11. Feldman J, Korula N, Mirrokni V, Muthukrishnan S, Pál M (2009) Online ad assignment with free disposal. Proc. 5th Internat. Workshop on Internet and Network Econom. WINE'09 (Springer-Verlag, Berlin), 374-385.
12. Fridgeirsdottir K, Najafi S (2010) Cost-per-click pricing for display advertising. Working paper, London Business School, London.
13. Gallego G, van Ryzin G (1994) Optimal dynamic pricing of inventories with stochastic demand over finite horizons. Management Sci. 40(8):999-1020.
14. Ghosh A, McAfee P, Papineni K, Vassilvitskii S (2009) Bidding for representative allocations for display advertising. Leonardi S, ed. Proc. 5th Internat. Workshop on Internet and Network Economics (Springer-Verlag, Berlin), 208-219.
15. Internet Advertising Bureau (2013) Internet advertising revenue report: 2012 full year results. Technical report, Pricewaterhouse-Coopers.
16. Jasin S, Kumar S (2012) A re-solving heuristic with bounded revenue loss for network revenue management with customer choice. Math. Oper. Res. 37(2):313-345.
17. Lariviere MA (2006) A note on probability distributions with increasing generalized failure rates. Oper. Res. 54(3):602-604.
18. Levi R, Radovanovic A (2010) Provably near-optimal lp-based policies for revenue management in systems with reusable resources. Oper. Res. 58(2):503-507.
19. Levin Y, McGill J, Nediak M (2008) Risk in revenue management and dynamic pricing. Oper. Res. 56(2):326-343.
20. Luenberger DG (1969) Optimization by Vector Space Methods, 1st ed. (John Wiley & Sons, New York).
21. McMahan HB, Holt G, Sculley D, Young M, Ebner D, Grady J, Nie L, et al. (2013) Ad click prediction: A view from the trenches. Proc. 19th ACM SIGKDD Internat. Conf. Knowledge Discovery and Data Mining. KDD'13 (ACM, New York), 1222-1230.
22. Milgrom PR, Weber RJ (1982) A theory of auctions and competitive bidding. Econometrica 50(5):1089-1122.
23. Muthukrishnan S (2009) Ad exchanges: Research issues. Leonardi S, ed. Internet and Network Economics, Lecture Notes in Computer Science (Springer, Berlin), 1-12.
24. Phillips R (2012) Efficient frontiers in revenue management. J. Revenue Pricing Management 11(4):371-385.
25. Roels G, Fridgeirsdottir K (2009) Dynamic revenue management for online display advertising. J. Revenue Pricing Management 8(5):452-466.
26. Shapiro A, Dentcheva D, Ruszczynski A (2009) Lectures on Stochastic Programming: Modeling and Theory, MOS-SIAM Series on Optimization 9 (Society for Industrial and Applied Mathematics, Philadelphia).
27. Simpson RW (1989) Using network flow techniques to find shadow prices for market demands and seat (MIT, Cambridge, MA).
28. Talluri K, van Ryzin G (1998) An analysis of bid-price controls for network revenue management. Management Sci. 44(11):1577-1593.
29. Talluri KT, van Ryzin GJ (2004) The Theory and Practice of Revenue Management, International Series in Operations Research and Management Science, Vol. 68 (Springer, New York).
30. Tan B, Srikant R (2012) Online advertisement, optimization and stochastic networks. Automatic Control, IEEE Trans. 57(11): 2854-2868.
31. Turner J (2012) The planning of guaranteed targeted display advertising. Oper. Res. 60(1):18-33.
32. Vee E, Vassilvitskii S, Shanmugasundaram J (2010) Optimal online assignment with forecasts. Proc. 11th ACM Conf. Electronic Commerce. EC'10 (ACM, New York), 109-118.
33. Yang J, Vee E, Vassilvitskii S, Tomlin J, Shanmugasundaram J, Anastasakos T, Kennedy O (2012) Inventory allocation for online graphical display advertising using multi-objective optimization. Working paper, Yahoo! Research, Sunnyvale, CA.