Challenges in the Design of Sponsored Search Auctions

Google Tech Talks April 13, 2007 ABSTRACT Since its inception in the 1980s, the popularity of the Internet has been growing exponentially, resulting in a mass of shared knowledge and fast, cheap communication. Hand-in-hand with these developments, we have seen the birth of a plethora of new valuable systems and services ranging from web search and email to blogging and social networking sites. Perhaps the most essential system for monetizing such web services is online advertising. In this talk, I will first present an overview of the most common market mechanism for online advertising, namely pay-per-click auctions. I will then discuss some of the challenges in the design of these auctions...