Improvements to the Linear Programming Based Scheduling of Web Advertisements

  • Authors:
  • Atsuyoshi Nakamura;Naoki Abe

  • Affiliations:
  • Division of Systems and Information Engineering, Graduate School of Engineering, Hokkaido University, Sapporo 060-8628, Japan atsu@main.eng.hokudai.ac.jp;IBM Thomas J. Watson Research Center, P.O. Box 218, Yorktown Heights, NY 10598, USA nabe@us.ibm.com

  • Venue:
  • Electronic Commerce Research
  • Year:
  • 2005

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Abstract

We propose and evaluate a number of improvements to the linear programming formulation of web advertisement scheduling, which we have proposed elsewhere together with our colleagues [Langheinrich et al., 9]. In particular, we address a couple of important technical challenges having to do with the estimation of click-through rates and optimization of display probabilities (the exploration–exploitation trade-off and the issue of data sparseness and scalability), as well as practical aspects that are essential for successful deployment of this approach (the issues of multi-impressions and inventory management). We propose solutions to each of these issues, and assess their effectiveness by running large-scale simulation experiments.