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A framework for intermediated online targeted advertising with banner ranking mechanism

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Abstract

Reinforced by the fast growth of electronic commerce, even during the current global economic downturn, intermediated online targeted advertising (IOTA) has emerged as a promising electronic business model empowered by the Web 2.0 principle. IOTA maximizes the profit of online targeted advertising services by displaying the proper banner contents to certain types of Web users in real time in order to increase the click-through rate (CTR). However, due to severe competition in the online advertising market, the principles and algorithms of IOTA remain highly confidential. This paper is intended to unveil the nature of IOTA. We propose an IOTA service system framework and present its implementation scheme. Specifically, we address the advertisement allocation problem, using an advertisement ranking mechanism and considering the ads impression quota and the time-of-day (TOD) effect. Simulation results show that advertisement ranking in a subset of clusters that actively estimates the quota situation is feasible and efficient.

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Notes

  1. Click-through rate is widely used to measure the effect of online advertisements. CTR is the ratio of the number of users who clicked on an ad on a Web page to the number of times the ad was delivered (impressions).

  2. http://archive.thestandard.com/internetnews/003081.php.

  3. http://www.trustedreviews.com/software/news/2007/08/14/Microsoft-Makes-Biggest-Ever-Purchase/p1.

  4. https://www.examiner.com/a-510669~AOL_to_purchase_European_online_advertising_firm_for__900_million.html.

  5. http://www.wpp.com/WPP/investor/financialnews/Default.htm?guid={1F85A44E-4713-4203-8449-46BF8791C756}.

  6. http://www.rightmedia.com/content/news-events/yahoo-announces-completion-of-right-media-acquisition/press-releases/5,709.php.

  7. http://www.businessweek.com/technology/content/apr2007/tc20070414_675511.htm.

  8. Actually, many studies in other areas have revealed that the TOD effect is a sine wave, but not a simple sine wave (Hursh 2003).

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Acknowledgment

We are grateful to Dr. Kai Jin for her involvement in the early stage of this research project.

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Authors and Affiliations

  1. Department of Industrial Engineering, Teda College, Nankai University, 300071, Tianjin, People’s Republic of China

    Kai Li

  2. Center for Advanced Analytics and Business Intelligence, Texas Tech University, Lubbock, TX, USA

    Efosa C. Idemudia, Zhangxi Lin & Yang Yu

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  1. Kai Li
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  2. Efosa C. Idemudia
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  3. Zhangxi Lin
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  4. Yang Yu
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Correspondence to Kai Li.

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Li, K., Idemudia, E.C., Lin, Z. et al. A framework for intermediated online targeted advertising with banner ranking mechanism. Inf Syst E-Bus Manage 10, 183–200 (2012). https://doi.org/10.1007/s10257-010-0134-4

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  • DOI: https://doi.org/10.1007/s10257-010-0134-4

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