Pay-per-action Model for Online Advertising

  • Mohammad Mahdian
  • Kerem Tomak
Part of the Lecture Notes in Computer Science book series (LNCS, volume 4858)


The online advertising industry is currently based on two dominant business models: the pay-per-impression model and the pay-per-click model. With the growth of sponsored search during the last few years, there has been a move toward the pay-per-click model as it decreases the risk to small advertisers. An alternative model, discussed but not widely used in the advertising industry, is pay-per-conversion, or more generally, pay-per-action. In this paper, we discuss various challenges involved in designing mechanisms for the pay-per-action model, and approaches to tackle some of them.


Learning Algorithm Action Rate Payment Scheme Auction Mechanism Brand Awareness 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • Mohammad Mahdian
    • 1
  • Kerem Tomak
    • 1
  1. 1.Yahoo! Research 

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