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Calibration of an Optimal Bidding Model for the Mobile Advertisement Markets

One goal of every business is to save money, and building strategies that work to minimize spending and maximize profit is key to the success of a company. Cidewalk is a mobile advertisement company that wished to implement an optimal bidding strategy to help reduce the company's cost and in turn maximize their profits. To accomplish this goal we collected market data which was then analyzed to identify the distribution of second best bids, which is the price Cidewalk pays for an advertisement space by bidding in a Vickrey auction. The optimal bidding model was then implemented through a simulation together with Bayesian updating methods to ensure the model would be responsive to changes in the market. The model's performance was evaluated through the simulation and it was discovered that throughout one day the implemented model yielded 17% savings when compared to Cidewalk's current bidding model.

Identiferoai:union.ndltd.org:wpi.edu/oai:digitalcommons.wpi.edu:etd-theses-2309
Date28 April 2016
CreatorsParkhomenko, Anastasiia
ContributorsStephan Sturm, Advisor, Marcel Y. Blais, Advisor
PublisherDigital WPI
Source SetsWorcester Polytechnic Institute
Detected LanguageEnglish
Typetext
Formatapplication/pdf
SourceMasters Theses (All Theses, All Years)

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