Online Ad Auctions

Hal R Varian
American Economic Review

Add Remove

excerpt The expected revenue received by the search engine is the price per click times the expected number of clicks. In general, the search engine would like to sell the most prominent positions—those most likely to receive clicks—to those ads that have the highest expected revenue. To accomplish this, the ads are ranked by bid times expected clickthrough rates, and those ads with the highest expected revenue are shown in the most prominent positions. on 6/3/2019, 1:37:13 PM

Hal Varian authored-of Online Ad Auctions on 6/7/2019, 2:19:58 PM