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Real-time bidding for online advertising: measurement and analysis

Yuan, S; Wang, J; Zhao, X; (2013) Real-time bidding for online advertising: measurement and analysis. In: Saka, E and Shen, D and Yan, J and Li, Y, (eds.) ADKDD '13: Proceedings of the Seventh International Workshop on Data Mining for Online Advertising. Association for Computing Machinery (ACM): New York, NY, United States. Green open access

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Abstract

The real-time bidding (RTB), aka programmatic buying, has recently become the fastest growing area in online advertising. Instead of bulking buying and inventory-centric buying, RTB mimics stock exchanges and utilises computer algorithms to automatically buy and sell ads in real-time; It uses per impression context and targets the ads to specific people based on data about them, and hence dramatically increases the effectiveness of display advertising. In this paper, we provide an empirical analysis and measurement of a production ad exchange. Using the data sampled from both demand and supply side, we aim to provide first-hand insights into the emerging new impression selling infrastructure and its bidding behaviours, and help identifying research and design issues in such systems. From our study, we observed that periodic patterns occur in various statistics including impressions, clicks, bids, and conversion rates (both post-view and post-click), which suggest time-dependent models would be appropriate for capturing the repeated patterns in RTB. We also found that despite the claimed second price auction, the first price payment in fact is accounted for 55.4% of total cost due to the arrangement of the soft floor price. As such, we argue that the setting of soft floor price in the current RTB systems puts advertisers in a less favourable position. Furthermore, our analysis on the conversation rates shows that the current bidding strategy is far less optimal, indicating the significant needs for optimisation algorithms incorporating the facts such as the temporal behaviours, the frequency and recency of the ad displays, which have not been well considered in the past.

Type: Proceedings paper
Title: Real-time bidding for online advertising: measurement and analysis
Event: Seventh International Workshop on Data Mining for Online Advertising (ADKDD '13)
ISBN-13: 9781450323239
Open access status: An open access version is available from UCL Discovery
DOI: 10.1145/2501040.2501980
Publisher version: http://dx.doi.org/10.1145/2501040.2501980
Language: English
Additional information: Copyright © 2013 ACM.
Keywords: bidding, computational advertising, conversion optimisation, behaviours, real-time bidding
UCL classification: UCL
UCL > Provost and Vice Provost Offices
UCL > Provost and Vice Provost Offices > UCL BEAMS
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science
UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of Engineering Science > Dept of Computer Science
URI: https://discovery.ucl.ac.uk/id/eprint/1401368
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