Analyzing Positioning Strategies in Sponsored Search Auctions Under CTR-Based Quality Scoring
Yuan, Yong1,2; Zeng, Daniel1,3; Zhao, Huimin4; Li, Linjing1
2015-04-01
发表期刊IEEE TRANSACTIONS ON SYSTEMS MAN CYBERNETICS-SYSTEMS
卷号45期号:4页码:688-701
文章类型Article
摘要Quality score (QS) plays a critical role in sponsored search advertising (SSA) auctions, and in practice is closely correlated to the historical click-through rate (CTR) of an advertisement. The CTR-QS correlation may impose great influence on advertisers' positioning strategies of selecting the targeting slots in the sponsored list. In the literature, however, QS is implicitly assumed to be an independent variable and exogenously assigned by Web search engines, so that little theoretical or managerial insights can be offered to help understand the positioning dynamics in SSA auctions with CTR-QS correlation. We strive to bridge this research gap in this paper. Based on a discrete time-dependent optimal control model, which explicitly captures the relationship between the historical CTR and QS, we determine the optimal strategy for revenue-maximizing advertisers' QS-based positioning decisions through a policy-iteration-based numerical approximation method. We also investigate two practically-used heuristic strategies, namely the greedy and farsighted positioning strategies, aiming to examine and help understand advertisers' real-world positioning dynamics. Our analysis indicates that both the optimal and greedy positioning strategies lead advertisers to monotonically increase or decrease their targeting slots over time, which may cause a polarization trend emerging in SSA markets. Meanwhile, the farsighted positioning strategy can accelerate the polarization. Our simulations show that both the greedy and farsighted strategies have good revenue performance. Our findings indicate that advertisers should monotonically adjust their targeting positions to maximize their revenue in CTR-QS correlated SSA auctions. Our findings also highlight the need for Web search engine companies to set a lowered weight for historical CTRs or use position-normalized CTRs in their QS measurements, so as to suppress the polarization trend.
关键词Terms-click-through Rate (Ctr) Optimal Control Polarization Quality Score (Qs) Sponsored Search
WOS标题词Science & Technology ; Technology
关键词[WOS]AD AUCTIONS
收录类别SCI ; SSCi
语种英语
WOS研究方向Automation & Control Systems ; Computer Science
WOS类目Automation & Control Systems ; Computer Science, Cybernetics
WOS记录号WOS:000351545900012
引用统计
被引频次:9[WOS]   [WOS记录]     [WOS相关记录]
文献类型期刊论文
条目标识符http://ir.ia.ac.cn/handle/173211/8091
专题复杂系统管理与控制国家重点实验室_先进控制与自动化
作者单位1.Chinese Acad Sci, Inst Automat, State Key Lab Management & Control Complex Syst, Beijing 100190, Peoples R China
2.Qingdao Acad Intelligent Ind, Qingdao 266111, Peoples R China
3.Univ Arizona, Eller Coll Management, Dept Management Informat Syst, Tucson, AZ 85721 USA
4.Univ Wisconsin, Sheldon B Lubar Sch Business, Milwaukee, WI 53201 USA
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Yuan, Yong,Zeng, Daniel,Zhao, Huimin,et al. Analyzing Positioning Strategies in Sponsored Search Auctions Under CTR-Based Quality Scoring[J]. IEEE TRANSACTIONS ON SYSTEMS MAN CYBERNETICS-SYSTEMS,2015,45(4):688-701.
APA Yuan, Yong,Zeng, Daniel,Zhao, Huimin,&Li, Linjing.(2015).Analyzing Positioning Strategies in Sponsored Search Auctions Under CTR-Based Quality Scoring.IEEE TRANSACTIONS ON SYSTEMS MAN CYBERNETICS-SYSTEMS,45(4),688-701.
MLA Yuan, Yong,et al."Analyzing Positioning Strategies in Sponsored Search Auctions Under CTR-Based Quality Scoring".IEEE TRANSACTIONS ON SYSTEMS MAN CYBERNETICS-SYSTEMS 45.4(2015):688-701.
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