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AdWords and Generalized On-line Matching

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Presentation on theme: "AdWords and Generalized On-line Matching"— Presentation transcript:

1 AdWords and Generalized On-line Matching

2 How does a search engine company decide what ads to display with each query so as to maximize its revenue? The article introduces a notion of tradeoff revealing LP and uses it to derive an optimal algorithm achieving a competitive ratio of 1 − 1/e for this problem.

3 But there are things to consider..
The Objective: As queries arrive during the day, they must be assigned to advertisers. The objective is to maximize the total revenue while respecting the daily budgets. But there are things to consider.. A bidder pays only if the user clicks on his ad. Advertisers have different daily budgets. Instead of charging a bidder his actual bid, the search engine company charges him the next highest bid. Multiple ads can appear with the results of a query. Advertisers enter at different times.

4 A Discretized Version of the Algorithm

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12 How are the problems solved?


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