Designing Online Advertising Markets

Published on 2011-08-239791 Views

Research focuses on marketplace design, auction theory, and the statistical analysis of auction data.

IJCAI 2011 - Barcelona

Designing Online Advertising Markets00:00

Introduction01:19

Auction-Based Two-Sided Markets05:13

What Matters in Market Design for a Platform Market?14:48

Market design v. Mechanism Design18:39

Influencing Market Design20:41

The Role of Data and Experimentation25:40

Search Advertising Auctions29:41

Current Auction Format33:55

Generalized Second Price Auction with Click-Weighting34:00

Why a real-time auction?37:43

Why a pay-per click (PPC) auction? - 137:44

Why a pay-per click (PPC) auction? - 237:44

Click-weighted auctions37:45

Extending Theory to Incorporate Platform Economics41:09

Athey-Ellison Results43:50

Consumer, Advertiser Participation Exogenous (Monopoly Platform)46:57

Competition Reduces Reserve Prices48:32

A Structural Model for Counterfactual Analysis49:32

Advertiser Order Database, Delivery Engine, Scoring Algorithm49:40

Reformulate Problem49:41

Estimates of AC(q), MC(q), and implied value for a high-value search phrase49:41

Model Predictions Out of Sample53:35

Bid Shading, Profits Per Click Vary by Position53:36

GSP is inefficient; Revenue Comparison Ambiguous53:41

“Squashing” Raises Revenue Substantially at Modest Efficiency Cost55:29

Short-Term Effects Smaller than Long-Term Limitation to Short-Term Experiments56:50

Conclusions57:31