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Revenue-maximizing ranking algorithm for advertisers in sponsored search advertising using novel adaptive keyword-weighted approach

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Abstract

Sponsored search has emerged as a prominent form of advertising on the internet and acts as a major source of revenue for various search engines. In this, the attention of the user is drawn towards the ads, presented as sponsored links, along with organic search results, to the entered query, on a given search engine. Advertisers bid on keywords (also referred to as bid terms) of possible future search queries and pay accordingly on getting clicked. It is observed that normally the advertisers bid on frequently occurring keywords in the search queries which often leaves the revenue space of search engines underexplored. The paper presents a novel technique for maximizing the revenue of a given search engine by an adaptive keyword-weighted approach. The proposed approach ensures weight assignment to keywords based upon their impression-winning capability adaptively and progressively. It then couples the weights assigned with the rarity factor of the keywords leading to a revenue-maximizing ranking mechanism. Advertisers with lower bid values but relevant rare keywords are explored over the higher bidders. Quantitative analysis results show that the proposed algorithm is efficient and it shows significant improvement compared to the generalized balance algorithm.

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Data availability

The datasets generated during and/or analysed during the current study are available from the corresponding author on reasonable request.

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Authors and Affiliations

  1. JC Bose University of Science and Technology, YMCA, Faridabad, Haryana, India

    Shikha Gupta & Atul Mishra

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  1. Shikha Gupta
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  2. Atul Mishra
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Contributions

Both the authors contributed to the study’s conception and design. Atul Mishra conceptualized the area of investigation and thereafter material preparation, data collection, and analysis were performed by Shikha Gupta. The first draft of the manuscript was written by Shikha Gupta and Atul Mishra commented on versions of the manuscript. All authors read and approved the final manuscript.

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Correspondence to Shikha Gupta.

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Gupta, S., Mishra, A. Revenue-maximizing ranking algorithm for advertisers in sponsored search advertising using novel adaptive keyword-weighted approach. Multimed Tools Appl 82, 12043–12064 (2023). https://doi.org/10.1007/s11042-022-13747-6

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