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E-commerce platforms usually present an ordered list, mixed with several organic items and an advertisement, in response to each user's page view request. This list, the outcome of ad auction and allocation processes, directly impacts the…

Computer Science and Game Theory · Computer Science 2024-04-12 Xuejian Li , Ze Wang , Bingqi Zhu , Fei He , Yongkang Wang , Xingxing Wang

We study the problem of auction design for advertising platforms that face strategic advertisers who are bidding across platforms. Each advertiser's goal is to maximize their total value or conversions while satisfying some constraint(s)…

Computer Science and Game Theory · Computer Science 2024-05-07 Gagan Aggarwal , Andres Perlroth , Ariel Schvartzman , Mingfei Zhao

Modern ad auctions allow advertisers to target more specific segments of the user population. Unfortunately, this is not always in the best interest of the ad platform. In this paper, we examine the following basic question in the context…

Computer Science and Game Theory · Computer Science 2019-07-16 Ashwinkumar Badanidiyuru , Kshipra Bhawalkar , Haifeng Xu

The transition of display ad exchanges from second-price auctions (SPA) to first-price auctions (FPA) has raised questions about its impact on revenue. Auction theory predicts the revenue equivalence between these two auction formats.…

Computer Science and Game Theory · Computer Science 2024-12-04 Martin Bichler , Alok Gupta , Matthias Oberlechner

Mature internet advertising platforms offer high-level campaign management tools to help advertisers run their campaigns, often abstracting away the intricacies of how each ad is placed and focusing on aggregate metrics of interest to…

Computer Science and Game Theory · Computer Science 2021-09-07 Vincent Conitzer , Christian Kroer , Debmalya Panigrahi , Okke Schrijvers , Eric Sodomka , Nicolas E. Stier-Moses , Chris Wilkens

Motivated by online advertising auctions, we study auction design in repeated auctions played by simple Artificial Intelligence algorithms (Q-learning). We find that first-price auctions with no additional feedback lead to tacit-collusive…

Theoretical Economics · Economics 2022-02-15 Martino Banchio , Andrzej Skrzypacz

In online advertising markets, budget-constrained advertisers acquire ad placements through repeated bidding in auctions on various platforms. We present a strategy for bidding optimally in a set of auctions that may or may not be…

Computer Science and Game Theory · Computer Science 2023-06-14 Fransisca Susan , Negin Golrezaei , Okke Schrijvers

With the advent and increasing consolidation of e-commerce, digital advertising has very recently replaced traditional advertising as the main marketing force in the economy. In the past four years, a particularly important development in…

Computer Science and Game Theory · Computer Science 2022-11-14 Wei Zhang , Yanjun Han , Zhengyuan Zhou , Aaron Flores , Tsachy Weissman

Contemporary real-world online ad auctions differ from canonical models [Edelman et al., 2007; Varian, 2009] in at least four ways: (1) values and click-through rates can depend upon users' search queries, but advertisers can only partially…

Machine Learning · Computer Science 2024-04-11 Ming Chen , Sareh Nabi , Marciano Siniscalchi

We present a model of digital advertising with three key features: (i) advertisers can reach consumers on and off a platform, (ii) additional data enhances the value of advertiser-consumer matches, and (iii) bidding follows auction-like…

Theoretical Economics · Economics 2024-04-25 Dirk Bergemann , Alessandro Bonatti , Nicholas Wu

Existing auto-bidding algorithms in digital advertising often treat the value of an ad opportunity as the revenue obtained when an ad is shown and/or clicked, and bid accordingly. This can lead to wasteful spending because the true value is…

Computer Science and Game Theory · Computer Science 2026-05-05 Yuxiao Wen , Zihao Hu , Yanjun Han , Yuan Yao , Zhengyuan Zhou

In many online advertisement (ad) exchanges, ad slots are each sold via a separate second-price auction. This paper considers the bidder's problem of maximizing the value of ads they purchase in these auctions, subject to budget…

Computer Science and Game Theory · Computer Science 2020-03-16 Jonathan Amar , Nicholas Renegar

In many applications, ads are displayed together with the prices, so as to provide a direct comparison among similar products or services. The price-displaying feature not only influences the consumers' decisions, but also affects the…

Artificial Intelligence · Computer Science 2023-03-24 Bin Li , Yahui Lei

Auction is applied for trade with various mechanisms. A simple but practical question is which mechanism, typically first-price or second-price auctions, is preferred from the perspective of bidders or sellers. A celebrated answer is…

Computer Science and Game Theory · Computer Science 2026-02-20 Yuma Fujimoto , Kaito Ariu , Kenshi Abe

We consider a setting in which bidders participate in multiple auctions run by different sellers, and optimize their bids for the \emph{aggregate} auction. We analyze this setting by formulating a game between sellers, where a seller's…

Computer Science and Game Theory · Computer Science 2020-01-20 Renato Paes Leme , Balasubramanian Sivan , Yifeng Teng

Notifications are important for the user experience in mobile apps and can influence their engagement. However, too many notifications can be disruptive for users. A typical mobile app usually has several types of notification, managed by…

Computer Science and Game Theory · Computer Science 2023-02-10 Christian Kroer , Deeksha Sinha , Xuan Zhang , Shiwen Cheng , Ziyu Zhou

Throttling is a popular method of budget management for online ad auctions in which the platform modulates the participation probability of an advertiser in order to smoothly spend her budget across many auctions. In this work, we…

Computer Science and Game Theory · Computer Science 2023-02-07 Xi Chen , Christian Kroer , Rachitesh Kumar

Second-price auctions with reserve play a critical role for modern search engine and popular online sites since the revenue of these companies often directly de- pends on the outcome of such auctions. The choice of the reserve price is the…

Machine Learning · Computer Science 2014-12-03 Mehryar Mohri , Andres Muñoz Medina

We consider an online ad network problem in which an ad exchange auctions ad slots and intermediaries called demand side platforms (DSPs) buy these ad slots for their clients (advertisers). An intermediary represents multiple advertisers.…

Computer Science and Game Theory · Computer Science 2019-10-07 Rahul Meshram , Kesav Kaza

This paper explores the integration of strategic optimization methods in search advertising, focusing on ad ranking and bidding mechanisms within E-commerce platforms. By employing a combination of reinforcement learning and evolutionary…

Machine Learning · Computer Science 2024-05-30 Chang Zhou , Yang Zhao , Jin Cao , Yi Shen , Xiaoling Cui , Chiyu Cheng
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