Optimal Budget Allocation Across Search Advertising Markets
Yang, Yanwu1; Zeng, Daniel2,3; Yang, Yinghui4; Zhang, Jie5
Source PublicationINFORMS JOURNAL ON COMPUTING
2015-03-01
Volume27Issue:2Pages:285-300
SubtypeArticle
AbstractOne critical operational decision facing online advertisers when they engage in sponsored search advertising is concerned with the allocation of a limited advertising budget. In particular, dealing with multi-keyword search markets over multiple decision periods poses significant decision-making challenges. In this paper, we develop a novel budget allocation optimization model with multiple search advertising markets and a finite time horizon. One key element of our modeling work is developing a customized advertising response function when considering distinctive features of sponsored search, including the quality score and the dynamic advertising effort. We derive a feasible solution to our budget model and study its properties. Computational experiments are conducted on real-world data to evaluate our budget model and perform parameter sensitivity analysis. Experimental results indicate that our budget allocation strategy significantly outperforms several baseline strategies. In addition, the identified properties derived from the solution process illuminate critical managerial insights for advertisers in sponsored search.
KeywordSponsored Search Budget Allocation Budget Strategy Search Markets
WOS HeadingsScience & Technology ; Technology
WOS KeywordSPONSORED SEARCH ; MODEL ; OPTIMIZATION ; DECISION ; DUOPOLY ; MEDIA
Indexed BySCI ; SSCi
Language英语
WOS Research AreaComputer Science ; Operations Research & Management Science
WOS SubjectComputer Science, Interdisciplinary Applications ; Operations Research & Management Science
WOS IDWOS:000355224700007
Citation statistics
Cited Times:7[WOS]   [WOS Record]     [Related Records in WOS]
Document Type期刊论文
Identifierhttp://ir.ia.ac.cn/handle/173211/7926
Collection复杂系统管理与控制国家重点实验室_互联网大数据与信息安全
Affiliation1.Huazhong Univ Sci & Technol, Sch Management, Wuhan 430074, Peoples R China
2.Chinese Acad Sci, Inst Automat, Beijing 100190, Peoples R China
3.Univ Arizona, Dept Management Informat Syst, Tucson, AZ 85721 USA
4.Univ Calif Davis, Grad Sch Management, Davis, CA 95616 USA
5.Chinese Acad Sci, Inst Automat, Beijing 100190, Peoples R China
Recommended Citation
GB/T 7714
Yang, Yanwu,Zeng, Daniel,Yang, Yinghui,et al. Optimal Budget Allocation Across Search Advertising Markets[J]. INFORMS JOURNAL ON COMPUTING,2015,27(2):285-300.
APA Yang, Yanwu,Zeng, Daniel,Yang, Yinghui,&Zhang, Jie.(2015).Optimal Budget Allocation Across Search Advertising Markets.INFORMS JOURNAL ON COMPUTING,27(2),285-300.
MLA Yang, Yanwu,et al."Optimal Budget Allocation Across Search Advertising Markets".INFORMS JOURNAL ON COMPUTING 27.2(2015):285-300.
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