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Yield Optimization of Display Advertising with Ad Exchange (2011)
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| Citations: | 7 - 1 self |
BibTeX
@MISC{Balseiro11yieldoptimization,
author = {Santiago Balseiro and Jon Feldman and Vahab Mirrokni and S. Muthukrishnan and Ad Exchanges Like Rightmedia and Adecn Or Doubleclick},
title = {Yield Optimization of Display Advertising with Ad Exchange},
year = {2011}
}
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Abstract
Abstract. In light of the growing market of Ad Exchanges for the real-time sale of advertising slots, publishers face new challenges in choosing between the allocation of contract-based reservation ads and spot market ads. In this setting, the publisher should take into account the tradeoff between short-term revenue from an Ad Exchange and the long-term benefits of delivering good quality spots to the reservation ads. In this paper, we formalize this combined optimization problem as a stochastic control problem and derive an efficient policy for online ad allocation in settings with general joint distribution over placement quality and exchange bids. We prove asymptotic optimality of this policy in terms of any trade-off between quality of delivered reservation ads and revenue from the exchange, and provide a rigorous bound for its convergence rate to the optimal policy. We also give experimental results on data derived from real publisher inventory, showing that our policy can achieve any Pareto-optimal point on the quality vs. revenue curve. Finally, we study a parametric training-based algorithm in which instead of learning the dual variables from a data sample (as is done in non-parametric training-based algorithms), we learn the parameters of the distribution and construct those dual variables from the learned parameter values. We compare parametric and non-parametric ways to estimate from data both analytically and experimentally in the special case without the ad exchange, and show that though both methods converge to the optimal policy as the sample size grows, our parametric method converges faster, and thus performs better on smaller samples.
Keyphrases
ad exchange display advertising yield optimization dual variable optimal policy reservation ad exchange bid special case combined optimization problem real-time sale quality v delivered reservation ad parametric training-based algorithm parametric method converges placement quality non-parametric training-based algorithm long-term benefit stochastic control problem rigorous bound spot market ad sample size grows online ad allocation advertising slot asymptotic optimality non-parametric way new challenge pareto-optimal point learned parameter value data sample real publisher inventory experimental result method converge short-term revenue revenue curve efficient policy convergence rate contract-based reservation ad good quality spot general joint distribution
