Optimal Bidding Strategies for Online Ad Auctions with Overlapping Targeting Criteria

Erik Tillberg
Erik Tillberg
Ravi Mazumdar
Ravi Mazumdar

Special Interest Group on Measurement and Evaluation, pp. 109-110, 2020.

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Keywords:
bidding strategiesonline ad auctionssecond price auction

Abstract:

We analyze the problem of how to optimally bid for ad spaces in online ad auctions. For this we consider the general case of multiple ad campaigns with overlapping targeting criteria. In our analysis we first characterize the structure of an optimal bidding strategy. In particular, we show that an optimal bidding strategies decomposes the...More

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