TWO STRATEGIES TO INCREASE ADVERTISERS' UTILITY IN GOOGLEADVERTISING FRAMEWORK

摘要

Search engine advertising plays an important role in Internet advertising. Google, one of the leading search engine companies provides two types of ads: keyword search ad based on CPC (cost per click) method, and site-targeted ad based on CPM (cost per thousand impressions) method. This paper studies the strategy that combines these two types of ads to maximize advertisers' revenue. Two specific applications of this strategy are discussed: advertising depreciable information and advertising new products. We also show that dynamic bidding strategy may help advertisers increase revenue.