Exploring Optimal Revenue Models For DSPs In Real Time Bidding Advertising

In RTB advertising, the AdExchange platform (AdX) can be regarded as a bridge connecting the supply side and demand side of advertising, and advertisers buy the ad impressions through the Demand-Side Platforms (DSPs). As such, there is a two-stage auction process for each ad impression, and the first stage is organized by the DSPs, while the second stage is organized by the AdX. In the two-stage auction process, two possible revenue models are available for DSPs, namely commission model and two-stage resale model. In this paper, we first compare the revenues of DSPs under the two models, and then explore the optimal revenue model for a DSP under the condition that the revenue model of other DSPs are given. We also unitize the computational experiments approach to evaluate our proposed method, and our results can help DSPs find their optimal revenue model in RTB advertising.

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