A Hybrid Pricing Mechanism for Solving the Click Fraud Problem in AdWords Auctions

摘要

Click fraud is a serious threat to the keyword advertising industry.In this paper,we designed a hybrid pricing mechanism in which an advertiser can submit both her bids for a click and for an impression.When the real click-though rate does not exceed the predefined click-though rate she pays according to pay-per-click model,otherwise she pays according to pay-perimpression model.We proved that the hybrid pricing mechanism is resistant to click fraud and compared the search engine's revenue in original AdWords auction mechanism and in our improved auction mechanism.