Selective Call Out and Real Time Bidding

  • Tanmoy Chakraborty
  • Eyal Even-Dar
  • Sudipto Guha
  • Yishay Mansour
  • S. Muthukrishnan
Part of the Lecture Notes in Computer Science book series (LNCS, volume 6484)

Abstract

Ads on the Internet are increasingly sold via ad exchanges such as RightMedia, AdECN and Doubleclick Ad Exchange. These exchanges allow real-time bidding, that is, each time the publisher contacts the exchange, the exchange “calls out” to solicit bids from ad networks. This solicitation introduces a novel aspect, in contrast to existing literature. This suggests developing a joint optimization framework which optimizes over the allocation and well as solicitation.

We model this selective call out as an online recurrent Bayesian decision framework with bandwidth type constraints. We obtain natural algorithms with bounded performance guarantees for several natural optimization criteria. We show that these results hold under different call out constraint models, and different arrival processes. Interestingly, the paper shows that under MHR assumptions, the expected revenue of generalized second price auction with reserve is constant factor of the expected welfare. Also the analysis herein allow us prove adaptivity gap type results for the adwords problem.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2010

Authors and Affiliations

  • Tanmoy Chakraborty
    • 1
  • Eyal Even-Dar
  • Sudipto Guha
    • 1
  • Yishay Mansour
    • 2
  • S. Muthukrishnan
    • 3
  1. 1.University of PennsylvaniaPhiladelphia
  2. 2.Google Israel and The Blavatnik School of Computer ScienceTel-Aviv UniversityTel-AvivIsrael
  3. 3.Google ResearchNew York

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