Corelab Seminar
2011-2012
Markos Epitrpou (NTUA)
Sponsored Search Auctions
Abstract.
Sponsored search auctions, also known as keyword auctions, is a form of online advertising
where advertisers compete for a place next to the web search results. Internet giants Google,
Yahoo!, Microsoft sell online advertising by this form, who auction positions for sponsored search
links. Search revenues accounts for a large percentage of their massive revenues. We introduce the
basic setting in sponsored search auctions and the main design goals. Certain types of allocation
and payments will be presented, judging their stability, allocation efficiency and resulting revenue.
We'll have a closer look in the "Generalized Second Price" payment rule, it's Nash Equilibria and
Price of Anarchy, justifying why it is widely used.