An Open Source Advertisement System

An online advertisement system and its implementation
for the Yioop open source search engine are presented. This system
supports both selling advertisements and displaying them within
search results. The selling of advertisements is done using a system
to auction off daily impressions for keyword searches. This is an
open, ascending price auction system in which all accepted bids will
receive a fraction of the auctioned day’s impressions. New bids in
our system are required to be at least one half of the sum of all
previous bids ensuring the number of accepted bids is logarithmic
in the total ad spend on a keyword for a day. The mechanics of
creating an advertisement, attaching keywords to it, and adding it
to an advertisement inventory are described. The algorithm used to
go from accepted bids for a keyword to which ads are displayed at
search time is also presented. We discuss properties of our system
and compare it to existing auction systems and systems for selling
online advertisements.

Authors:

• Pushkar Umaranikar
• Chris Pollett

Keywords:

• Online markets
• online ad system
• online auctions
• search engines.

References:

[1] Y. Che and I. Gale. Expected Revenue of All-Pay and First-Price
Sealed-Bid Auctions with Budget Constraints. Economics Letters. 1996.
Vol. 50. pp. 373–379.
[2] Mung Chiang. Networked Life: 20 Questions and Answers. Cambridge
University Press, New York. 2012.
[3] Dino Grandoni. AOL in Deal With Microsoft to Take Over Display Ad
Business. Technology Section. New York Times. June 29, 2015.
[4] C. Karande, A. Mehta, R. Srikant. Optimizing Budget Constrained Spend
in Search Advertising. Sixth ACM International Conference on Web
Search and Data Mining, WSDM 2013, ACM, pp. 697–706.
[5] A. Mehta, A. Saberi, U. Vazirani, and V. Vazirani. AdWords and
Generalized Online Matching. Journal of the ACM. Volume 54, Number
5. 2007.
[6] ComScore Inc (2011) “The 2010 U.S. Digital Year in
Review” (Press Release) Retrieved on May 1, 2015 from,
http://www.comscore.com/Insights/Press-Releases/2011/2/
comScore-Releases-The-2010-U.S.-Digital-Year-in-Review
[7] Google Inc. Google AdWords. Retrieved on Dec. 29, 2015 from, http:
//www.google.com/about/company/history/.
[8] Google Inc. Google AdWords. Retrieved on May 1, 2015 from, https:
//www.google.com/adwords/
[9] V. Krishna. Auction Theory, 2nd Ed. Academic Press. 2010.
[10] Donald R. Lehmann and Charles B. Weinberg. Sales through Sequential
Distribution Channels: An Application to Movies and Videos. Journal of
Marketing. Vol. 64, No. 3 (Jul., 2000), pp. 18–33.
[11] B. O’Neill. International escalation and the dollar auction. Journal of
Conflict Resolution. Vol 30. pp. 33–50.
[12] J. Nielsen. Why You Only Need to Test with 5 Users. March 19, 2000.
Retrieved on Dec 27, 2015 from https://www.nngroup.com/articles/
how-many-test-users/.
[13] J. Nielsen. Usability 101: Introduction to Usability. January 4, 2012.
Retrieved on Dec 27, 2015 from https://www.nngroup.com/articles/
usability-101-introduction-to-usability/ [14] Sagin, Erin (January 22, 2014).“All About AdChoices: What is
AdChoices? How Does it Affect Advertisers and Consumers?”
WordStream. Retrieved on May 1, 2015
[15] Bing Ads Help. Microsoft. Retrieved on Dec. 28, 2015 from http://help.
bingads.microsoft.com/
[16] Google Inc. Inside AdSense. Retrieved on Apr 30, 2015 from, http:
//adsense.blogspot.com/
[17] Bradley Johnson (December 8, 2013). 10 Things You Should Know
About Global Ad Market. Retrieved on May 1, 2015 from, http://adage.
com/article/digital/online-measurement-16-web-clicking-display-ads/
139367/
[18] Apache JMeter Retrieved on Apr 30, 2015 from, http://jmeter.apache.
org/usermanual/index.html
[19] Seekquarry/Yioop About Page. Retrieved on Apr 30, 2015, from, http:
//www.seekquarry.com/p/About