Publications (2)0 Total impact
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Conference Proceeding: New Stochastic Algorithms for Scheduling Ads in Sponsored Search.
Fifth Latin American Web Congress (LA-Web 2007), 31 October - 2 November 2007, Santiago de Chile; 01/2007 -
Article: New stochastic algorithms for placing ads in sponsored search
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ABSTRACT: We introduce a family of algorithms for the selection of ads in sponsored search that intends to increase ad diversity while not significantly reducing revenue and maintaining an incentive for advertisers to keep their bids as high as possible. Diversification of ads may be useful for many different reasons. Our al-gorithms try to distribute the available slots among all ads, using some kind of proportional mechanism based on the bids and the expected CTRs of the ads. Although in our experiments we used a sim-ple first-price auction, our algorithms are compati-ble with strictly incentive-compatible auctions and pricing mechanisms. We have analyzed the perfor-mance of our algorithms both assuming a static in-trinsic CTR associated to each ad and in the more general case in which ads' CTR varies dynamically with time. The main result is that the best among our algorithms perform well compared to the tradi-tionally used (in some cases even better), while in-creasing notably the diversification of the published ads.