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A framework for intermediated online targeted advertising with banner ranking mechanism

  • Kai Li
  • Efosa C. Idemudia
  • Zhangxi Lin
  • Yang Yu
Original Article

Abstract

Reinforced by the fast growth of electronic commerce, even during the current global economic downturn, intermediated online targeted advertising (IOTA) has emerged as a promising electronic business model empowered by the Web 2.0 principle. IOTA maximizes the profit of online targeted advertising services by displaying the proper banner contents to certain types of Web users in real time in order to increase the click-through rate (CTR). However, due to severe competition in the online advertising market, the principles and algorithms of IOTA remain highly confidential. This paper is intended to unveil the nature of IOTA. We propose an IOTA service system framework and present its implementation scheme. Specifically, we address the advertisement allocation problem, using an advertisement ranking mechanism and considering the ads impression quota and the time-of-day (TOD) effect. Simulation results show that advertisement ranking in a subset of clusters that actively estimates the quota situation is feasible and efficient.

Keywords

Targeted advertising Intermediated online services Advertisement allocation Advertisement ranking 

Notes

Acknowledgment

We are grateful to Dr. Kai Jin for her involvement in the early stage of this research project.

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Copyright information

© Springer-Verlag 2010

Authors and Affiliations

  • Kai Li
    • 1
  • Efosa C. Idemudia
    • 2
  • Zhangxi Lin
    • 2
  • Yang Yu
    • 2
  1. 1.Department of Industrial Engineering, Teda CollegeNankai UniversityTianjinPeople’s Republic of China
  2. 2.Center for Advanced Analytics and Business IntelligenceTexas Tech UniversityLubbockUSA

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