Journal of the ACM (JACM)
A threshold of ln n for approximating set cover
Journal of the ACM (JACM)
Multi-unit auctions with budget-constrained bidders
Proceedings of the 6th ACM conference on Electronic commerce
Truthful auctions for pricing search keywords
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
An adaptive algorithm for selecting profitable keywords for search-based advertising services
EC '06 Proceedings of the 7th ACM conference on Electronic commerce
Dynamics of bid optimization in online advertisement auctions
Proceedings of the 16th international conference on World Wide Web
Budget optimization in search-based advertising auctions
Proceedings of the 8th ACM conference on Electronic commerce
AdWords and generalized online matching
Journal of the ACM (JACM)
Toward Expressive and Scalable Sponsored Search Auctions
ICDE '08 Proceedings of the 2008 IEEE 24th International Conference on Data Engineering
Stochastic models for budget optimization in search-based advertising
WINE'07 Proceedings of the 3rd international conference on Internet and network economics
A note on maximizing a submodular set function subject to a knapsack constraint
Operations Research Letters
Framework for timely and accurate ads on mobile devices
Proceedings of the 18th ACM conference on Information and knowledge management
Mining advertiser-specific user behavior using adfactors
Proceedings of the 19th international conference on World wide web
Scheduling to minimize power consumption using submodular functions
Proceedings of the twenty-second annual ACM symposium on Parallelism in algorithms and architectures
Bid generation for advanced match in sponsored search
Proceedings of the fourth ACM international conference on Web search and data mining
Multi-keyword sponsored search
Proceedings of the 12th ACM conference on Electronic commerce
Joint optimization of bid and budget allocation in sponsored search
Proceedings of the 18th ACM SIGKDD international conference on Knowledge discovery and data mining
A semantic approach to recommending text advertisements for images
Proceedings of the sixth ACM conference on Recommender systems
Budget optimization for online campaigns with positive carryover effects
WINE'12 Proceedings of the 8th international conference on Internet and Network Economics
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Ad auctions in sponsored search support "broad match" that allows an advertiser to target a large number of queries while bidding only on a limited number. While giving more expressiveness to advertisers, this feature makes it challenging to optimize bids to maximize their returns: choosing to bid on a query as a broad match because it provides high profit results in one bidding for related queries which may yield low or even negative profits. We abstract and study the complexity of the {\em bid optimization problem} which is to determine an advertiser's bids on a subset of keywords (possibly using broad match) so that her profit is maximized. In the query language model when the advertiser is allowed to bid on all queries as broad match, we present a linear programming (LP)-based polynomial-time algorithm that gets the optimal profit. In the model in which an advertiser can only bid on keywords, ie., a subset of keywords as an exact or broad match, we show that this problem is not approximable within any reasonable approximation factor unless P=NP. To deal with this hardness result, we present a constant-factor approximation when the optimal profit significantly exceeds the cost. This algorithm is based on rounding a natural LP formulation of the problem. Finally, we study a budgeted variant of the problem, and show that in the query language model, one can find two budget constrained ad campaigns in polynomial time that implement the optimal bidding strategy. Our results are the first to address bid optimization under the broad match feature which is common in ad auctions.