Online ad assignment with an ad exchange

DOI10.1007/978-3-319-18263-6_14MaRDI QIDQ3453291zbMATH OpenOpenAlexFDO

Authors Wolfgang Dvořák, Monika R. Henzinger

Publication date 20 November 2015

Published in Approximation and Online Algorithms (Search for Journal in Brave)

Full work available at URL https://arxiv.org/abs/1604.05603

Mathematics Subject Classification ID

Online algorithms; streaming algorithms (68W27) Auctions, bargaining, bidding and selling, and other market models (91B26) Marketing, advertising (90B60)

Abstract: Ad exchanges are becoming an increasingly popular way to sell advertisement slots on the internet. An ad exchange is basically a spot market for ad impressions. A publisher who has already signed contracts reserving advertisement impressions on his pages can choose between assigning a new ad impression for a new page view to a contracted advertiser or to sell it at an ad exchange. This leads to an online revenue maximization problem for the publisher. Given a new impression to sell decide whether (a) to assign it to a contracted advertiser and if so to which one or (b) to sell it at the ad exchange and if so at which reserve price. We make no assumptions about the distribution of the advertiser valuations that participate in the ad exchange and show that there exists a simple primal-dual based online algorithm, whose lower bound for the revenue converges to $R_{ADX}+R_A(1-1/e)$, where $R_{ADX}$ is the revenue that the optimum algorithm achieves from the ad exchange and $R_A$ is the revenue that the optimum algorithm achieves from the contracted advertisers.

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Cites work

• AdWords and generalized online matching

Cited in

(15)

• Frequency capping in online advertising (extended abstract)
• Deals or no deals: contract design for online advertising
• Allocation of advertising space by a web service provider using combinatorial auctions
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• Optimal contracts for intermediaries in online advertising
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