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Communication Dans Un Congrès Année : 2011

On the ranking strategy in adword auctions

Résumé

Search engines get revenue thanks to adword auc- tions, where commercial links are proposed and charged to advertisers as soon as the link is clicked through. Most search engines have chosen (or switched to) a revenue-based ranking and charging scheme instead of a bid-based one. We investigate here the relevance of that scheme when advertisers’ valuation comes from a random distribution. We show that, depending on the search engine’s click-through-rate, revenue-based does not always outperform bid-based in terms of revenue to the search engine. As a result, some search engines may have an interest to move to revenue-based ranking while others do not.
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Dates et versions

hal-00609527 , version 1 (19-07-2011)

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  • HAL Id : hal-00609527 , version 1

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Patrick Maillé, Bruno Tuffin. On the ranking strategy in adword auctions. 8th International Conference on Information Technology : New Generations (ITNG), Apr 2011, Las Vegas, United States. ⟨hal-00609527⟩
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