Bidding for multiple keywords in search-based advertising
Search-based advertisement allows small-to-medium size companies to use more effectively their advertisement budgets to target their potential customers. The advertisers manage this by bidding for a place on the result pages for several search keywords relevant to their products and services. The customer flow rates to the advertiser business pages change with the placements of advertisements on the pages, which are determined by the bidding prices of the advertisers in closed second-price auctions. We model the bidding process and calculate optimal dynamic bidding prices for several keywords subject to a single daily advertisement budget. (This is joint work with Semih Onur Sezer, Sabancı University)
