Stochastic Models for Budget Optimization in Searc

Authors: S Muthukrishnan Martin Pál Zoya Svitkina

Publish Date: 2007/12/12

Volume: , Issue: , Pages: 131-142

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Abstract

Internet search companies sell advertisement slots based on users’ search queries via an auction Advertisers have to determine how to place bids on the keywords of their interest in order to maximize their return for a given budget this is the budget optimization problem The solution depends on the distribution of future queries In this paper we formulate stochastic versions of the budget optimization problem based on natural probabilistic models of distribution over future queries and address two questions that ariseOur main results are approximation and complexity results for these two problems in our three stochastic models In particular our algorithmic results show that simple prefix strategies that bid on all cheap keywords up to some level are either optimal or good approximations for many cases we show other cases to be NPhard

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