Optimal dynamic multi-keyword bidding policy of an advertiser in search-based advertising

buir.contributor.authorDayanık, Savaş
dc.citation.epage56en_US
dc.citation.issueNumber1en_US
dc.citation.spage25en_US
dc.citation.volumeNumber97en_US
dc.contributor.authorDayanık, Savaş
dc.date.accessioned2023-02-16T13:40:05Z
dc.date.available2023-02-16T13:40:05Z
dc.date.issued2022-02
dc.departmentDepartment of Industrial Engineeringen_US
dc.description.abstractSponsored search advertisement allows advertisers to target their messages to appropriate customer segments at low costs. While search engines are interested in auction mechanisms that boost their revenues, advertisers seek optimal bidding strategies to increase their net sale revenues for multiple keywords under strict daily budget constraints in an environment where keyword query arrivals, competitor bid amounts, and user purchases are random. We focus on the advertiser’s question and formulate her optimal intraday dynamic multi-keyword bidding problem as a continuous-time stochastic optimization problem. We solve the problem, characterize an optimal policy, and bring a numerical algorithm for implementation. We also illustrate our optimal bidding policy and its benefits over heuristic solutions on numerical examples.en_US
dc.identifier.doi10.1007/s00186-022-00803-yen_US
dc.identifier.issn1432-2994
dc.identifier.urihttp://hdl.handle.net/11693/111469
dc.language.isoEnglishen_US
dc.publisherSpringeren_US
dc.relation.isversionofhttps://doi.org/10.1007/s00186-022-00803-yen_US
dc.source.titleMathematical Methods of Operations Researchen_US
dc.subjectDynamic biddingen_US
dc.subjectDynamic programmingen_US
dc.subjectSponsored search advertisingen_US
dc.subjectStochastic modelingen_US
dc.titleOptimal dynamic multi-keyword bidding policy of an advertiser in search-based advertisingen_US
dc.typeArticleen_US
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