Improving Auction Mechanisms for Online Real-Time Bidding Advertising with a Two-stage Resale Model
Qin Rui1,2,4; Yuan Yong1,2; Wang Fei-Yue1,2,3
2017
Conference Name2017 IFAC World Congress
Conference Date2017-7
Conference PlaceToulouse, France
AbstractReal Time Bidding (RTB), widely publicized as one of the most promising big-data driven business models for online computational advertising, has the potential of effectively monetizing user clicks and impressions via two-stage auctions with resale. Demand side platforms (DSPs) play a key role as intermediators in this auction process. Typically, the first-stage auctions will be conducted separately in each DSP to determine one winning advertiser registered on it, and in the second-stage auction, each DSP submits a bid based on its winning advertiser’s bid to the ad exchange platform (AdX). The highest-bid DSP wins the ad impression from AdX and resells it to its winning advertiser in pursuit of the intermediate fee. This two-stage resale auction is a critical component in maintaining the effectiveness and efficiency of RTB ecosystems. In this paper, we strive to identify and design potential improvements for this auction mechanism
with the aim of enhancing the total revenue of both advertisers and DSPs. We also validated our proposed auction mechanisms using the computational experiment approach. The experimental results indicate that our proposed mechanisms can make both advertisers and DSPs better off. Our work represents the first step towards a new research area of optimal mechanism design for RTB auctions, and is expected to provide useful managerial insights in RTB market practice.

Document Type会议论文
Identifierhttp://ir.ia.ac.cn/handle/173211/15437
Collection复杂系统管理与控制国家重点实验室_先进控制与自动化
Corresponding AuthorYuan Yong
Affiliation1.The State Key Laboratory of Management and Control for Complex Systems, Institute of Automation, Chinese Academy of Sciences
2.Qingdao Academy of Intelligent Industries
3.Research Center of Military Computational Experiments and Parallel System, National University of Defense Technology
4.Beijing Engineering Research Center of Intelligent Systems and Technology, Institute of Automation, Chinese Academy of Sciences
Recommended Citation
GB/T 7714
Qin Rui,Yuan Yong,Wang Fei-Yue. Improving Auction Mechanisms for Online Real-Time Bidding Advertising with a Two-stage Resale Model[C],2017.
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