Real-time bidding algorithms for performance-based display ad allocation

@inproceedings{Chen2011RealtimeBA,
  title={Real-time bidding algorithms for performance-based display ad allocation},
  author={Ye Chen and Pavel Berkhin and Bo Anderson and Nikhil R. Devanur},
  booktitle={KDD},
  year={2011}
}
We describe a real-time bidding algorithm for performance-based display ad allocation. A central issue in performance display advertising is matching campaigns to ad impressions, which can be formulated as a constrained optimization problem that maximizes revenue subject to constraints such as budget limits and inventory availability. The current practice is to solve the optimization problem offline at a tractable level of impression granularity (e.g., the page level), and to serve ads online… CONTINUE READING
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