Research On Advertising Auction Model Based On Interest

Advertising auction, is a form of search engine marketing in modern times. With the development of web search technology,This form of marketing both meet the basic needs for Internet users to search information,and meet the demand for advertisers to find potential customers,so this mode of marketing is booming,what’s more,sponsored search has become the main revenue sources for every search engine company over the world. In recent years, Internet advertising is flooding, web users have been gradually immune to them, the survey shows that there is a downward trend in the click rate of keywords advertising, click rate is very important to advertisers and search engines, so we research the method to improve the advertisement’s click rate is very meaningful.Firstly, we introduce the interest factor based on GSP, we determine a new ranking rule,payment rule. Secondly we derive a new formula to advertisers’ revenue and advertisers’payment based on interest auction model. Once more, we explore the "Partial no jealousy"equilibrium condition. Finally, we provide the payment rule and the dominant equilibrium strategy under VCG mechanism.At the end of this paper, we make the interest auction model apply to the TAC/AA platform, we make contrast test with GSP mechanism respectively from the number of clicks, search engine’s revenue lower limit, search engine’s revenue upper limit, operating efficiency and auction allocation efficiency. Experimental results show that except some loss of operating efficiency, other four aspects all have improvements. Then we make comparison from the search engine’s revenue and operating efficiency under multiple interest slot. It is concluded that the gain of search engine’s revenue will become less and less, the losing efficiency will become more and more when the interest slot reach certain quantity.