TITLE:
Bid Optimization for Internet Graphical Ad Auction Systems via Special Ordered Sets
AUTHORS:
Ralphe Wiggins, John A. Tomlin
KEYWORDS:
Optimization, Advertising, Electronic Business
JOURNAL NAME:
iBusiness,
Vol.2 No.3,
September
30,
2010
ABSTRACT: This paper describes an optimization model for setting bid levels for certain types of advertisements on web pages. This model is non-convex, but we are able to obtain optimal or near-optimal solutions rapidly using branch and cut open- source software. The financial benefits obtained using the prototype system have been substantial.