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TacTex09: Champion of the First Trading Agent Competition on Ad Auctions

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Technical Report

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University of Texas at Austin Austin United States

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Sponsored search 4 is one of the most important forms of Internet advertising available to businesses today. In sponsored search, an advertiser pays to have its advertisement displayed alongside search engine results whenever a user searches for a specific keyword or set of keywords. An advertiser can thereby target only those users who might be interested in the advertisers products. Each of the major search engines Google, Yahoo, and Microsoft implements sponsored search in a slightly different way, but the overall idea is the same. For each keyword, a keyword auction 5 is run in which advertisers bid an amount that they are willing to pay each time their ad is clicked, and the order in which the ads are displayed is determined by the ranking of the bids and possibly other factors.

Subject Categories:

  • Operations Research

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