Mohammad Mahdian
Kerem Tomak
ABSTRACT
The online advertising industry is currently based on two dominant business models: the pay-per-impression model and the pay-per-click model. These pricing models aim to address two dimensions of an advertisers' objective function: brand awareness and sales generation. An alternative model, discussed but not widely used in the advertising industry, is pay-per-conversion, or more generally, pay-per-action. In this note, we discuss mechanisms for the pay-per-action model and various challenges involved in designing such mechanisms.
- Forrester Research, US Online Marketing Forecast: 2005 to 2010, May 2, 2005.Google Scholar
- N. Immorlica, K. Jain, M. Mahdian, and K. Talwar, Click Fraud Resistant Methods for Learning Click-Through Rates, Workshop on Internet and Network Economics (WINE), Hong Kong, 2005. Google ScholarDigital Library
Index Terms
- Towards a pay-per-action model in sponsored search
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