skip to main content
10.1145/2566486.2568030acmotherconferencesArticle/Chapter ViewAbstractPublication PagesthewebconfConference Proceedingsconference-collections
research-article

Advertising in a stream

Published: 07 April 2014 Publication History

Abstract

One of the most important innovations of social networking websites is the notion of a "feed", a sequence of news items presented to the user as a stream that expands as the user scrolls down. The common method for monetizing such streams is to insert ads in between news items. In this paper, we model this setting, and observe that allocation and pricing of ad insertions in a stream poses interesting algorithmic and mechanism design challenges. In particular, we formulate an optimization problem that captures a typical stream ad placement setting. We give an approximation algorithm for this problem that provably achieves a value close to the optimal, and show how this algorithm can be turned into an incentive compatible mechanism. Finally, we conclude with a simple practical algorithm that makes the allocation decisions in an online fashion. We prove this algorithm to be approximately welfare-maximizing and show that it also has good incentive properties.

References

[1]
G. Aggarwal, J. Feldman, S. Muthukrishnan, and M. Pál. Sponsored search auctions with markovian users. In Proc. 4th WINE, pages 621--628, 2008.
[2]
G. Aggarwal, A. Goel, and R. Motwani. Truthful auctions for pricing search keywords. In Proc. 7th EC, 2006.
[3]
N. Alon, I. Gamzu, and M. Tennenholtz. Optimizing budget allocation among channels and influencers. In WWW '12, 2012.
[4]
A. Archer and E. Tardos. Truthful mechanisms for one-parameter agents. In Proc. 42nd FOCS, 2001.
[5]
E. Bakshy, D. Eckles, R. Yan, and I. Rosenn. Social influence in social advertising: Evidence from field experiments. In Proc. 13th EC, 2012.
[6]
N. Buchbinder, K. Jain, and J. S. Naor. Online primal-dual algorithms for maximizing ad-auctions revenue. In Algorithms--ESA 2007, pages 253--264. Springer, 2007.
[7]
O. Candogan, K. Bimpikis, and A. Ozdaglar. Optimal pricing in the presence of local network effect. In Proc. 6th WINE, 2010.
[8]
E. H. Clarke. Multipart pricing of public goods. Public Choice, pages 17--33, 1971.
[9]
N. R. Devenur and T. P. Hayes. The adwords problem: online keyword matching with budgeted bidders under random permutations. In Proceedings of the 10th ACM conference on Electronic commerce, pages 71--78. ACM, 2009.
[10]
B. Edelmen, M. Ostrovsky, and M. Schwarz. Internet advertising and the generalized second price auction. Amer. Econ. Review, 2007.
[11]
J. Feldman, A. Mehta, V. Mirrokni, and S. Muthukrishnan. Online stochastic matching: Beating 1--1/e. In Foundations of Computer Science, 2009. FOCS'09. 50th Annual IEEE Symposium on, pages 117--126. IEEE, 2009.
[12]
T. Groves. Inventive in teams. Econometrica, pages 617--631, 1973.
[13]
N. Haghpanah, N. Immorlica, K. Munagala, and V. S. Mirrokni. Optimal auctions with positive network externalities. In Proc. 12th EC, 2011.
[14]
J. D. Hartline, V. S. Mirrokni, and M. Sundararajan. Optimal marketing strategies over social network. In WWW '08, 2008.
[15]
D. Kempe, J. Kleinberg, and Éva Tardos. Maximizing the spread of influence through a social network. In Proc. 9th KDD, 2003.
[16]
D. Kempe and M. Mahdian. A cascade model for externalities in sponsored search. In Proc. 4th WINE, pages 585--596, 2008.
[17]
M. Mahdian, H. Nazerzadeh, and A. Saberi. Allocating online advertisement space with unreliable estimates. In Proc. 8th EC, 2007.
[18]
A. Mehta, A. Saberi, U. Vazirani, and V. Vazirani. Adwords and generalized on-line matching. In Proc. 46th FOCS, pages 264--273, 2005.
[19]
A. Mu'alem and N. Nisan. Truthful approximation mechanisms for restricted combinatorial auctions. In Proc. 18th AAAI, 2002.
[20]
R. B. Myerson. Optimal auction design. Math. Oper. Res., 6(1):58--73, 1981.
[21]
N. Nisan, T. Roughgarden, Éva Tardos, and V. V. Vazirani, editors. Algorithmic Game Theory. Cambridge University Press, 2007.
[22]
P. Papadimitriou, H. Garcia-Molina, P. Krishnamurthy, R. A. Lewis, and D. H. Reiley. Display advertising impact: Search lift and social influence. In Proc. 17th KDD, pages 1019--1027, 2011.
[23]
M. Todi. Advertising on social networking websites. Wharton Research Scholars Journal, 2008.
[24]
H. Varian. Position auctions. Int. J. Industrial Organization, 2007.
[25]
W. Vickrey. Conunterspeculation, auctions and competitive sealed tenders. J. Finance, pages 8--37, 1061.
[26]
K. C. Wilbur, L. Xu, and D. Kempe. Correcting audience externalities in television advertising. Marketing Science, Forthcoming. Available attextttSSRN: http://ssrn.com/abstract=1423702, September 2013.

Cited By

View all
  • (2025)Sequential Diversification with Provable GuaranteesProceedings of the Eighteenth ACM International Conference on Web Search and Data Mining10.1145/3701551.3703531(345-353)Online publication date: 10-Mar-2025
  • (2022)Revenue and User Traffic Maximization in Mobile Short-Video AdvertisingProceedings of the 21st International Conference on Autonomous Agents and Multiagent Systems10.5555/3535850.3535972(1092-1100)Online publication date: 9-May-2022
  • (2022)How Much Does Ad Sequence Matter? Economic Implications of Consumer Zapping and the Zapping-Induced Externality in the Television Advertising MarketJournal of Advertising10.1080/00913367.2022.202684352:2(229-246)Online publication date: 5-Apr-2022
  • Show More Cited By

Recommendations

Comments

Information & Contributors

Information

Published In

cover image ACM Other conferences
WWW '14: Proceedings of the 23rd international conference on World wide web
April 2014
926 pages
ISBN:9781450327442
DOI:10.1145/2566486

Sponsors

  • IW3C2: International World Wide Web Conference Committee

In-Cooperation

Publisher

Association for Computing Machinery

New York, NY, United States

Publication History

Published: 07 April 2014

Permissions

Request permissions for this article.

Check for updates

Author Tags

  1. auctions
  2. newsfeed advertising

Qualifiers

  • Research-article

Conference

WWW '14
Sponsor:
  • IW3C2

Acceptance Rates

WWW '14 Paper Acceptance Rate 84 of 645 submissions, 13%;
Overall Acceptance Rate 1,899 of 8,196 submissions, 23%

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • Downloads (Last 12 months)34
  • Downloads (Last 6 weeks)4
Reflects downloads up to 25 Feb 2025

Other Metrics

Citations

Cited By

View all
  • (2025)Sequential Diversification with Provable GuaranteesProceedings of the Eighteenth ACM International Conference on Web Search and Data Mining10.1145/3701551.3703531(345-353)Online publication date: 10-Mar-2025
  • (2022)Revenue and User Traffic Maximization in Mobile Short-Video AdvertisingProceedings of the 21st International Conference on Autonomous Agents and Multiagent Systems10.5555/3535850.3535972(1092-1100)Online publication date: 9-May-2022
  • (2022)How Much Does Ad Sequence Matter? Economic Implications of Consumer Zapping and the Zapping-Induced Externality in the Television Advertising MarketJournal of Advertising10.1080/00913367.2022.202684352:2(229-246)Online publication date: 5-Apr-2022
  • (2021)User Response Prediction in Online AdvertisingACM Computing Surveys10.1145/344666254:3(1-43)Online publication date: 8-May-2021
  • (2020)Optimizing ad allocation in mobile advertisingProceedings of the Twenty-First International Symposium on Theory, Algorithmic Foundations, and Protocol Design for Mobile Networks and Mobile Computing10.1145/3397166.3409139(181-190)Online publication date: 11-Oct-2020
  • (2019)Uncovering Bias in Ad Feedback Data Analyses & Applications✱Companion Proceedings of The 2019 World Wide Web Conference10.1145/3308560.3317304(614-623)Online publication date: 13-May-2019
  • (2018)Advertisement Allocation and Mechanism Design in Native Stream AdvertisingComplex Networks and Their Applications VII10.1007/978-3-030-05414-4_16(197-210)Online publication date: 5-Dec-2018
  • (2017)Online optimization of video-ad allocationProceedings of the 26th International Joint Conference on Artificial Intelligence10.5555/3171642.3171703(423-429)Online publication date: 19-Aug-2017
  • (2016)Optimal advertisement allocation in online social media feedsProceedings of the 8th ACM International Workshop on Hot Topics in Planet-scale mObile computing and online Social neTworking10.1145/2944789.2944791(43-48)Online publication date: 5-Jul-2016
  • (2016)Native Advertisement Selection and Allocation in Social Media Post FeedsEuropean Conference on Machine Learning and Knowledge Discovery in Databases - Volume 985110.1007/978-3-319-46128-1_37(588-603)Online publication date: 19-Sep-2016
  • Show More Cited By

View Options

Login options

View options

PDF

View or Download as a PDF file.

PDF

eReader

View online with eReader.

eReader

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media