Dynamics of bid optimization in online advertisement auctions
Proceedings of the 16th international conference on World Wide Web
Ex Ante Information and the Design of Keyword Auctions
Information Systems Research
On the Ranking Strategy in Adword Auctions
ITNG '11 Proceedings of the 2011 Eighth International Conference on Information Technology: New Generations
Adword auction bidding strategies of budget-limited advertisers on competing search engines
Proceedings of the 7th International Conference on Network and Services Management
Adword auction bidding strategies of budget-limited advertisers on competing search engines
Proceedings of the 7th International Conference on Network and Services Management
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The economic stakes of advertising on the Internet - and in particular, of auctions for keywords in search engines- are enormous and still increasing. We focus in this paper on situations where bidders (advertisers) on sponsored search auction systems have a limited budget, so that they may not be able to afford to participate in all auctions. Using a game-theoretical model of the strategic interactions among advertisers, we analyze the equilibrium strategies in terms of bidding frequencies, in the case of one monopoly search engine and when two search engines are in competition. Our results exhibit the importance for search engines to develop their attractiveness to customers, due to the impact this has on auction revenues.