New Yahoo Research Overview: A New Serving of Sponsored Search
Is there a better way to sell search ads? David Pennock, a Yahoo! Research scientist in the microeconomics group, believes there is always room for improvement. That’s why he’s investigating new sponsored search scenarios that could lead to more revenues for Yahoo! and a better experience for users and advertisers. This is where the work done by Pennock and his team comes into the picture. Instead of basing advertising rank on the accepted model of highest bid multiplied by relevance, they decided to fiddle with click-thru rates and see what happens if relevance is given slightly less consideration. Their model looks something like this: highest bid multiplied by relevance to the power of q, where q ranges between 0 and 1. So if q is zero, advertising rank is simply determined by the highest bid. But if q is say, .5, then the model still takes relevance into account, but squashes it down, giving it less weight than it normally would.
+ Direct to Abstract: Revenue Analysis of a Family of Ranking Rules for Keyword Auctions
See Also: Budget optimization in search-based advertising auctions (Abstract Only)
See Also: Betting on Permutations
Full Text available.
Source: Yahoo Research
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on Monday, August 20th, 2007 and is filed under Information Industry, Information Science, Search News, Web Search.
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