This paper describes an optimization model for setting bid levels for certain types of advertisements on web pages. This model is non-convex, but we are able to obtain optimal or near-optimal solutions rapidly using branch and cut open-source software. The financial benefits obtained using the prototype system have been substantial.
@article{arxiv.0706.3865,
title = {Bid Optimization for Internet Graphical Ad Auction Systems via Special Ordered Sets},
author = {Ralphe Wiggins and John A. Tomlin},
journal= {arXiv preprint arXiv:0706.3865},
year = {2007}
}