Display advertising has been a significant source of revenue for publishers and ad networks in online advertising ecosystem. One of the main goals in display advertising is to maximize user response rate for advertising campaigns, such as click through rates (CTR) or conversion rates. Although in the online advertising industry we believe that the visual appearance of ads (creatives) matters for propensity of user response, there is no published work so far to address this topic via a systematic data-driven approach. In this paper we quantitatively study the relationship between the visual appearance and performance of creatives using large scale data in the world's largest display ads exchange system, RightMedia. We designed a set of 43 visual features, some of which are novel and some are inspired by related work. We extracted these features from real creatives served on RightMedia. We also designed and conducted a series of experiments to evaluate the effectiveness of visual features for CTR prediction, ranking and performance classification. Based on the evaluation results, we selected a subset of features that have the most important impact on CTR. We believe that the findings presented in this paper will be very useful for the online advertising industry in designing high-performance creatives. It also provides the research community with the first ever data set, initial insights into visual appearance's effect on user response propensity, and evaluation benchmarks for further study.

One of the most important categories of online advertising is display advertising which provides publishers with significant revenue. Similar to other categories, the main goal in display advertising is to maximize user response rate for advertising campaigns, such as click through rates (CTR) or conversion rates. Previous studies have tried to optimize these parameters using objectives such as behavioral targeting. However, there is no published work so far to address the effect of the visual appearance of ads (creatives) on user response rate via a systematic data-driven approach. In this paper, we quantitatively study the relationship between the visual appearance and performance of creatives using large scale data in the world's largest display ads exchange system, RightMedia. We designed a set of 43 visual features, some of which are novel and others are inspired by related work. We extracted these features from real creatives served on RightMedia. We also designed and conducted a series of experiments to evaluate the effectiveness of visual features for CTR prediction, ranking and performance classification. Based on the evaluation results, we selected a subset of features that have the highest impact on CTR. We believe that the findings presented in this paper will be very useful for the online advertising industry in designing high-performance creatives. It also provides the research community with the first ever data set, initial insights into visual appearance's effect on user response propensity, and evaluation benchmarks for further study.

Display advertising has been growing rapidly in recent years, with revenue generated from display ads placed on spaces allocated on publisher's web pages. Traditionally, the design and layout of ad spaces on a web page are predetermined and fixed for the publisher. The objective of this work is to investigate the revenue opportunities of changing the ad layout dynamically for the publisher. A dynamic ad layout revenue optimization framework is developed for display advertising, in terms of both guaranteed and non-guaranteed advertising. The system automatically selects the ad layout template with the highest potential revenue yield for each single web page presented to the user. Forecasting algorithms are developed to predict the revenue of each ad opportunity. Two objectives are explored for the forecasting algorithms of ad layout optimization, the expected revenue and actual revenue. Promising results are obtained in offline simulation on real data collected from a Yahoo! property. The dynamic ad layout optimization system is further tested on real-time traffic and a significant revenue gain is observed compared with a static ad layout serving method.

This paper is concerned with the problem of learning a model to rank objects (Web pages, ads and etc.). We propose a framework where the ranking model is both optimized and evaluated using the same information retrieval measures such as Normalized Discounted Cumulative Gain (NDCG) and Mean Average Precision (MAP). The main difficulty in direct optimization of NDCG and MAP is that these measures depend on the rank of objects and are not differentiable. Most learning-to-rank methods that attempt to optimize NDCG or MAP approximate such measures so that they can be differentiable. In this paper, we propose a simple yet effective stochastic optimization algorithm to directly minimize any loss function, which can be defined on NDCG or MAP for the learning-to-rank problem. The algorithm employs Simulated Annealing along with Simplex method for its parameter search and finds the global optimal parameters. Experiment results using NDCG-Annealing algorithm, an instance of the proposed algorithm, on LETOR benchmark data sets show that the proposed algorithm is both effective and stable when compared to the baselines provided in LETOR 3.0. In addition, we applied the algorithm for ranking ads in contextual advertising. Our method has shown to significantly improve relevance in offline evaluation and business metrics in online tests in a real large-scale advertising serving system . To scale our computations, we parallelize the algorithm in a MapReduce framework running on Hadoop.

Display advertising has been a significant source of revenue for publishers and ad networks in online advertising ecosystem. One important business model in online display advertising is Ad Exchange marketplace, also called non-guaranteed delivery (NGD), in which advertisers buy targeted page views and audiences on a spot market through real-time auction. In this paper, we describe a bid landscape forecasting system in NGD marketplace for any advertiser campaign specified by a variety of targeting attributes. In the system, the impressions that satisfy the campaign targeting attributes are partitioned into multiple mutually exclusive samples. Each sample is one unique combination of quantified attribute values. We develop a divide-and-conquer approach that breaks down the campaign-level forecasting problem. First, utilizing a novel star-tree data structure, we forecast the bid for each sample using non-linear regression by gradient boosting decision trees. Then we employ a mixture-of-log-normal model to generate campaign-level bid distribution based on the sample-level forecasted distributions. The experiment results of a system developed with our approach show that it can accurately forecast the bid distributions for various campaigns running on the world's largest NGD advertising exchange system, outperforming two baseline methods in term of forecasting errors.

In online advertising campaigns, to measure purchase propensity, click-through rate (CTR), defined as a ratio of number of clicks to number of impressions, is one of the most informative metrics used in business activities such as performance evaluation and budget planning. No matter what channel an ad goes through (display ads, sponsored search or contextual advertising), CTR estimation for rare events is essential but challenging, often incurring with huge variance, due to the sparsity in data. In this chapter, to alleviate this sparsity, we develop models and methods to smoothen CTR estimation by taking advantage of the natural data hierarchy or by clustering and data continuity in time to leverage information from data close to the events of interest. In a contextual advertising system running at Yahoo!, we demonstrate that our methods lead to significantly more accurate estimation of CTRs.

The dynamic marketplace in online advertising calls for ranking systems that are optimized to consistently promote and capitalize better performing ads. The streaming nature of online data inevitably makes an advertising system choose between maximizing its expected revenue according to its current knowledge in short term (exploitation) and trying to learn more about the unknown to improve its knowledge (exploration), since the latter might increase its revenue in the future. The exploitation and exploration (EE) tradeoff has been extensively studied in the reinforcement learning community, however, not been paid much attention in online advertising until recently. In this paper, we develop two novel EE strategies for online advertising. Specifically, our methods can adaptively balance the two aspects of EE by automatically learning the optimal tradeoff and incorporating confidence metrics of historical performance. Within a deliberately designed offline simulation framework we apply our algorithms to an industry leading performance based contextual advertising system and conduct extensive evaluations with real online event log data. The experimental results and detailed analysis reveal several important findings of EE behaviors in online advertising and demonstrate that our algorithms perform superiorly in terms of ad reach and click-through-rate (CTR).