Impedance coupling in content-targeted advertising
Proceedings of the 28th annual international ACM SIGIR conference on Research and development in information retrieval
Strategic bidder behavior in sponsored search auctions
Decision Support Systems
Dynamics of bid optimization in online advertisement auctions
Proceedings of the 16th international conference on World Wide Web
Computational analysis of perfect-information position auctions
Proceedings of the 10th ACM conference on Electronic commerce
Biased Listing in Electronic Marketplaces: Exploring Its Implications in On-Line Hotel Distribution
International Journal of Electronic Commerce
DASA: Dissatisfaction-oriented Advertising based on Sentiment Analysis
Expert Systems with Applications: An International Journal
Blogger-Centric Contextual Advertising
Expert Systems with Applications: An International Journal
Advertising Keywords Recommendation for Short-Text Web Pages Using Wikipedia
ACM Transactions on Intelligent Systems and Technology (TIST)
Click fraud resistant methods for learning click-through rates
WINE'05 Proceedings of the First international conference on Internet and Network Economics
Increasing broadband subscriptions for telecom carriers through mobile advertising
AIRS'11 Proceedings of the 7th Asia conference on Information Retrieval Technology
Joint optimization of bid and budget allocation in sponsored search
Proceedings of the 18th ACM SIGKDD international conference on Knowledge discovery and data mining
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Web sites such as Internet search engines, web portals, and comparison shopping services, aim to provide information or recommendations to users who might be searching for information or trying to make a purchase decision. Paid placement advertising has established itself as an important revenue resource for such information-oriented web sites, which often deliberately bias their recommendations (or sequence of results) in return for a fee from providers who wish to get preferential placement on the results page. This article examines the paid-placement ranking strategies of the two dominant firms in this industry, and compares their revenues under different scenarios via computational simulation. We find that ranking paid placement links by the product of willingness to pay and relevance is better, in most cases, than ranking by willingness to pay alone, which performs best only when the correlation between the provider's relevance and willingness to pay is large. We also analyze the impact of the competition for placement slots on placement revenues under these mechanisms.