Click fraud resistant methods for learning click-through rates
WINE'05 Proceedings of the First international conference on Internet and Network Economics
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The on-line advertising industry is based on two dominant business models: pay-per-impression and pay-per-click. The growth of sponsored search has fostered a move to the pay-per-click model because it is less risky for small advertisers. An alternative model, discussed but not widely used in the advertising industry, is pay-per-conversion, or more generally, pay-per-action. This paper discusses the challenges of designing mechanisms for the pay-per-action model and approaches to tackle some of them.