Research And Application Of Internet Advertising Auction Model

Internet is developing so rapidly as an advertising media. In recent years, search engine giant Google uses a new mechanism of advertising auction based on Generalized Second Price (GSP) is a global research hot spot. How to extend this mechanism to more websites where there is sales auction is becoming a hot question in this industry. Based on this purpose, this paper presents a model of GSP based Internet advertising auction.First, in this paper, we analyzes the domestic and foreign research situation of the Internet advertising auction, introduces the traditional auction theory and online auction theory. By contrast the similarities and differences of the traditional advertising auction and keyword advertising auction, directed towards the limitations of GSP based keyword advertising auction, we design a kind of auction model which applicable to traditional Internet advertising auction. The model improves position sequencing regulation and advertisers pay rules of the key words advertising auction model, take the impressions through rate and click through rate in the auction rules. Based on the above, this paper discusses the advertiser revenue and the conditions of Nash equilibrium under it. Then, in order to adapt to the requirement of traditional Internet advertisement, this paper analyzes the relationship between the seller expected revenue and auction time, puts forward the Internet advertising auction time model and the analysis process of optimal auction time. This time model is not only applicable to network advertisement sale, but also to more items price discrimination auction. Finally, this article compares this model with VCG mechanism, uses experimental data to demonstrate the effectiveness of the model, and applies the model to advertisement sales of health information platform.