Online sponsored search auction matching problem with advertiser credibility

Abstract

How does a search engine company decide which advertisements to display for each query to maximize its revenue? This turns out to be a generalization of the online bipartite matching problem. In this paper, search engines decide the strategy to allocate resources with an advertiser credibility factor under budget constraints. Based on the optimal algorithm, which is the notion of a trade-off revealing LP, this paper remains the competitive ratio as 1–1/e with an advertiser credibility factor. During the ranking in the keywords auctions, CTR(Click Through Rate) and credibility factor are added to the trade-off function. In the long term, users tend to use the search engine with high credibility, which will bring greater revenues. The search engine will attract advertisers to bid on keywords and improve their credibility actively.