The Research And Application Of Programming Internet Auto Auction Theory

As the modern technology is developing very fast, especially the Internet, it makes a great evolution in many traditional field. One of the most noticeable field is advertisement. Internet advertisement is transforming from the media buying model to audiences buying model. The advantage of Internet makes user can sell by every single browse be possible. Every refresh gains advertisers to bidding, the winner can show his advertisement. The recent research is concentrate on Internet advertisement auction. Meanwhile, the theory of auction is suitable for programming buying and auction. Because Programmatic purchasing is involved in many links of industry chain, auction theory and application are both involved in Ad exchange and DSP. The core of Programmatic purchasing is user portrait, but there is very few paper about it, the demand of target advertisement user in different in each field. Only after understand the information of user, it can promise that the advertisement is launch precisely, the advertiser can gain more profit. This paper’s research is based on this circumstance.The focus point of this paper is "auction theory in Programmatic purchasing", which is a brand new research field. This paper contrast the advantages and disadvantages of GSP(Generalized Second Price) and VCG(Vickrey-Clarke-Groves) auction by study ad exchange’s auction model. This paper uses quantitative analysis to explain why Programmatic purchasing is using GSP auction model but not the VCG auction model, while which has more advantages. This paper also researched advertiser should think of what factors for bidding an advertisement, what kind of user is the target user of advertisers. This paper analysis the users interested in cars, understand their characters and features by research the car industry, offer reason for advertisers of car industry who want to have Programmatic purchasing.