{"type":"ScholarlyArticle","title":"Optimal Bidding Strategy for Brand Advertising","authors":[{"name":"Takanori Maehara","slug":"takanori-maehara","given":"Takanori","family":"Maehara","affiliation":"RIKEN Center for Advanced Intelligence Project; CyberAgent Inc."},{"name":"Atsuhiro Narita","slug":"atsuhiro-narita","given":"Atsuhiro","family":"Narita","affiliation":"CyberAgent Inc."},{"name":"Jun Baba","slug":"jun-baba","given":"Jun","family":"Baba","affiliation":"CyberAgent Inc."},{"name":"Takayuki Kawabata","slug":"takayuki-kawabata","given":"Takayuki","family":"Kawabata","affiliation":"CyberAgent Inc."}],"abstract":"Brand advertising is a type of advertising that aims at increasing the awareness of companies or products. This type of advertising is well studied in economic, marketing, and psychological literature; however, there are no studies in the area of computational advertising because the effect of such advertising is difficult to observe.\r\nIn this study, we consider a real-time biding strategy for brand advertising. Here, our objective to maximizes the total number of users who remember the advertisement, averaged over the time. For this objective, we first introduce a new objective function that captures the cognitive psychological properties of memory retention, and can be optimized efficiently in the online setting (i.e., it is a monotone submodular function). Then, we propose an algorithm for the bid optimization problem with the proposed objective function under the second price mechanism by reducing the problem to the online knapsack constrained monotone submodular maximization problem. We evaluated the proposed objective function and the algorithm in a real-world data collected from our system and a questionnaire survey.\r\nWe observed that our objective function is reasonable in real-world setting, and the proposed algorithm outperformed the baseline online algorithms.","doi":"10.24963/ijcai.2018/59","url":"https://ijcai.org/proceedings/2018/59","pdf":"https://ijcai.org/proceedings/2018/0059.pdf","markdown":"https://ijcai.org/proceedings/2018/59.md","bibtex":"https://ijcai.org/proceedings/2018/bibtex/59","volume":{"slug":"2018","title":"Proceedings of the Twenty-Seventh International Joint Conference on Artificial Intelligence","short_title":"IJCAI 2018","url":"https://ijcai.org/proceedings/2018/","year":2018,"location":"Stockholm","dates":"13-19 July 2018","editors":"Jérôme Lang","isbn":"978-0-9992411-2-7","publisher":"International Joint Conferences on Artificial Intelligence Organization","doi_prefix":"10.24963/ijcai.2018"},"section":"Agent-based and Multi-agent Systems","track":"Main track","number":59,"pages":{"first":424,"last":432},"keywords":["Heuristic Search and Game Playing: Combinatorial Search and Optimisation","Agent-based and Multi-agent Systems: Economic Paradigms, Auctions and Market-Based Systems"],"videos":[],"references":[{"position":1,"raw":"[Aaker and Biel, 2013] David A Aaker and Alexander Biel. Brand equity & advertising: advertising's role in building strong brands. Psychology Press, 2013.","title":"Brand equity & advertising: advertising's role in building strong brands","authors":"A David, Alexander Aaker, Biel","year":"2013","venue":null,"doi":null,"url":null,"internal_url":null},{"position":2,"raw":"[Alon et al., 2012] Noga Alon, Iftah Gamzu, and Moshe Ten- nenholtz. Optimizing budget allocation among channels and influencers. In Proceedings of the 21st International Conference on World Wide Web, pages 381-388, 2012.","title":"Optimizing budget allocation among channels and influencers","authors":"Iftah Noga Alon, Moshe Gamzu, Tennenholtz","year":"2012","venue":"Proceedings of the 21st International Conference on World Wide Web","doi":null,"url":null,"internal_url":null},{"position":3,"raw":"[Averell and Heathcote, 2011] Lee Averell and Andrew Heathcote. The form of the forgetting curve and the fate of memories. Journal of Mathematical Psychology, 55(1):25- 35, 2011.","title":"The form of the forgetting curve and the fate of memories","authors":"Lee Averell, Andrew Heathcote","year":"2011","venue":"Journal of Mathematical Psychology","doi":null,"url":null,"internal_url":null},{"position":4,"raw":"[Babaioff et al., 2007] Moshe Babaioff, Nicole Immorlica, David Kempe, and Robert Kleinberg. A knapsack secretary problem with applications. In Approximation, random- ization, and combinatorial optimization. Algorithms and techniques, pages 16-28. Springer, 2007.","title":"A knapsack secretary problem with applications","authors":"Babaioff","year":"2007","venue":"Approximation, randomization, and combinatorial optimization. Algorithms and techniques","doi":null,"url":null,"internal_url":null},{"position":5,"raw":"[Baddeley, 1999] Alan D Baddeley. Essentials of human memory. Psychology Press, 1999.","title":"Essentials of human memory","authors":"Alan D Baddeley","year":"1999","venue":null,"doi":null,"url":null,"internal_url":null},{"position":6,"raw":"[Bateni et al., 2010] MohammadHossein Bateni, Moham- madTaghi Hajiaghayi, and Morteza Zadimoghaddam. Sub- modular secretary problem and extensions. In Approxi- mation, Randomization, and Combinatorial Optimization. Algorithms and Techniques, pages 39-52. Springer, 2010.","title":"MohammadHossein Bateni, Moham-madTaghi Hajiaghayi, and Morteza Zadimoghaddam. Submodular secretary problem and extensions","authors":"Bateni","year":"2010","venue":"Approximation, Randomization, and Combinatorial Optimization. Algorithms and Techniques","doi":null,"url":null,"internal_url":null},{"position":7,"raw":"[Buchbinder and Naor, 2009] Niv Buchbinder and Joseph Naor. Online primal-dual algorithms for covering and pack- ing. Mathematics of Operations Research, 34(2):270-286, 2009.","title":"Online primal-dual algorithms for covering and packing","authors":"Naor Buchbinder, Niv Buchbinder, Joseph Naor","year":"2009","venue":"Mathematics of Operations Research","doi":null,"url":null,"internal_url":null},{"position":8,"raw":"[Cai et al., 2017] Han Cai, Kan Ren, Weinan Zhang, Klean- this Malialis, Jun Wang, Yong Yu, and Defeng Guo. Real- time bidding by reinforcement learning in display advertis- ing. In Proceedings of the 10th International Conference on Web Search and Data Mining, 2017.","title":"Realtime bidding by reinforcement learning in display advertising","authors":"Han Cai, Kan Ren, Weinan Zhang, Kleanthis Malialis, Jun Wang, Yong Yu, Defeng Guo","year":"2017","venue":"Proceedings of the 10th International Conference on Web Search and Data Mining","doi":null,"url":null,"internal_url":null},{"position":9,"raw":"[Chakrabarti and Kale, 2015] Amit Chakrabarti and Sagar Kale. Submodular maximization meets streaming: Match- ings, matroids, and more. Mathematical Programming, 154(1-2):225-247, 2015.","title":"Submodular maximization meets streaming: Matchings, matroids, and more","authors":"Amit Chakrabarti, Sagar Kale","year":"2015","venue":"Mathematical Programming","doi":null,"url":null,"internal_url":null},{"position":10,"raw":"[Chen and He, 2003] Rong Chen and Feng He. Examination of brand knowledge, perceived risk and consumers' inten- tion to adopt an online retailer. Total Quality Management & Business Excellence, 14(6):677-693, 2003.","title":"Examination of brand knowledge, perceived risk and consumers' intention to adopt an online retailer","authors":"Rong Chen, Feng He","year":"2003","venue":"Total Quality Management & Business Excellence","doi":null,"url":null,"internal_url":null},{"position":11,"raw":"[Davis and Rabinowitz, 2007] Philip J Davis and Philip Ra- binowitz. Methods of numerical integration. Courier Cor- poration, 2007.","title":"Methods of numerical integration","authors":"J Philip, Philip Davis, Rabinowitz","year":"2007","venue":"Courier Corporation","doi":null,"url":null,"internal_url":null},{"position":12,"raw":"[De Mooij and Hofstede, 2010] Marieke De Mooij and Geert Hofstede. The hofstede model: Applications to global branding and advertising strategy and research. Interna- tional Journal of Advertising, 29(1):85-110, 2010.","title":"The hofstede model: Applications to global branding and advertising strategy and research","authors":"De Mooij, De Hofstede ; Marieke, Geert Mooij, Hofstede","year":"2010","venue":"International Journal of Advertising","doi":null,"url":null,"internal_url":null},{"position":13,"raw":"[Ebbinghaus, 1913] Hermann Ebbinghaus. Memory: A con- tribution to experimental psychology (Original work pub- lished in 1885). Number 3. University Microfilms, 1913.","title":"Memory: A contribution to experimental psychology","authors":"Hermann Ebbinghaus, Ebbinghaus","year":"1913","venue":"Original work published in 1885","doi":null,"url":null,"internal_url":null},{"position":14,"raw":"[Greene, 1989] Robert L Greene. Spacing effects in memory: Evidence for a two-process account. Journal of Exper- imental Psychology: Learning, Memory, and Cognition, 15(3):371, 1989.","title":"Spacing effects in memory: Evidence for a two-process account","authors":"Robert L Greene","year":"1989","venue":"Journal of Experimental Psychology: Learning, Memory, and Cognition","doi":null,"url":null,"internal_url":null},{"position":15,"raw":"[Hansen and Christensen, 2003] Flemming Hansen and Lars Bech Christensen. Branding and advertising. Copenhagen Business School Press DK, 2003.","title":"Branding and advertising","authors":"Christensen Hansen, Flemming Hansen, Lars Bech Christensen","year":"2003","venue":null,"doi":null,"url":null,"internal_url":null},{"position":16,"raw":"[Kesselheim and Tönnis, 2016] Thomas Kesselheim and An- dreas Tönnis. Submodular secretary problems: Cardi- nality, matching, and linear constraints. arXiv preprint arXiv:1607.08805, 2016.","title":"Submodular secretary problems: Cardinality, matching, and linear constraints","authors":"Thomas Kesselheim, Andreas Tönnis","year":"2016","venue":null,"doi":null,"url":null,"internal_url":null},{"position":17,"raw":"[Khuller et al., 1999] Samir Khuller, Anna Moss, and Joseph Seffi Naor. The budgeted maximum coverage prob- lem. Information Processing Letters, 70(1):39-45, 1999.","title":"The budgeted maximum coverage problem","authors":"Samir Khuller, Anna Moss, Joseph Seffi Naor","year":"1999","venue":"Information Processing Letters","doi":null,"url":null,"internal_url":null},{"position":18,"raw":"[Kumar et al., 2015] Ravi Kumar, Benjamin Moseley, Sergei Vassilvitskii, and Andrea Vattani. Fast greedy algorithms in mapreduce and streaming. Transactions on Parallel Computing, 2(3):14, 2015.","title":"Fast greedy algorithms in mapreduce and streaming","authors":"Ravi Kumar, Benjamin Moseley, Sergei Vassilvitskii, Andrea Vattani","year":"2015","venue":"Transactions on Parallel Computing","doi":null,"url":null,"internal_url":null},{"position":19,"raw":"[Lueker, 1998] George S Lueker. Average-case analysis of off-line and on-line knapsack problems. Journal of Algo- rithms, 29(2):277-305, 1998.","title":"Average-case analysis of off-line and on-line knapsack problems","authors":"S George, Lueker","year":"1998","venue":"Journal of Algorithms","doi":null,"url":null,"internal_url":null},{"position":20,"raw":"[Marchetti-Spaccamela and Vercellis, 1995] Alberto Marchetti-Spaccamela and Carlo Vercellis. Stochastic on-line knapsack problems. Mathematical Programming, 68(1-3):73-104, 1995.","title":"Stochastic on-line knapsack problems","authors":"Alberto Marchetti-Spaccamela, Carlo Vercellis","year":"1995","venue":"Mathematical Programming","doi":null,"url":null,"internal_url":null},{"position":21,"raw":"[McClelland et al., 1995] James L McClelland, Bruce L Mc- Naughton, and Randall C O'reilly. Why there are comple- mentary learning systems in the hippocampus and neocor- tex: insights from the successes and failures of connection- ist models of learning and memory. Psychological review, 102(3):419, 1995.","title":"Why there are complementary learning systems in the hippocampus and neocortex: insights from the successes and failures of connectionist models of learning and memory","authors":"Bruce L James L Mcclelland, Randall C O' Mc-Naughton, Reilly","year":"1995","venue":"Psychological review","doi":null,"url":null,"internal_url":null},{"position":22,"raw":"[Mehta et al., 2007] Aranyak Mehta, Amin Saberi, Umesh Vazirani, and Vijay Vazirani. Adwords and generalized online matching. Journal of the ACM, 54(5):22, 2007.","title":"Adwords and generalized online matching","authors":"Mehta","year":"2007","venue":"Journal of the ACM","doi":null,"url":null,"internal_url":null},{"position":23,"raw":"[Murre et al., 2013] Jaap MJ Murre, Antonio G Chessa, and Martijn Meeter. A mathematical model of forgetting and amnesia. Frontiers in psychology, 4:76, 2013.","title":"A mathematical model of forgetting and amnesia","authors":"Antonio G Jaap Mj Murre, Martijn Chessa, Meeter","year":"2013","venue":"Frontiers in psychology","doi":null,"url":null,"internal_url":null},{"position":24,"raw":"[Park and Stoel, 2005] Jihye Park and Leslie Stoel. Effect of brand familiarity, experience and information on on- line apparel purchase. International Journal of Retail & Distribution Management, 33(2):148-160, 2005.","title":"Effect of brand familiarity, experience and information on online apparel purchase","authors":"Stoel Park, Leslie Stoel","year":"2005","venue":"International Journal of Retail & Distribution Management","doi":null,"url":null,"internal_url":null},{"position":25,"raw":"[Randall, 2000] Geoffrey Randall. Branding: A practical guide to planning your strategy. Kogan Page Limited, 2000.","title":"Branding: A practical guide to planning your strategy","authors":"Geoffrey Randall","year":"2000","venue":null,"doi":null,"url":null,"internal_url":null},{"position":26,"raw":"[Rawson and Dunlosky, 2013] Katherine A Rawson and John Dunlosky. Relearning attenuates the benefits and costs of spacing. Journal of Experimental Psychology: General, 142(4):1113, 2013.","title":"Relearning attenuates the benefits and costs of spacing","authors":"Katherine A Rawson, John Dunlosky","year":"2013","venue":"Journal of Experimental Psychology: General","doi":null,"url":null,"internal_url":null},{"position":27,"raw":"[Wickelgren, 1974] Wayne A Wickelgren. Single-trace fragility theory of memory dynamics. Memory & Cog- nition, 2(4):775-780, 1974.","title":"Single-trace fragility theory of memory dynamics","authors":"Wayne A Wickelgren","year":"1974","venue":"Memory & Cognition","doi":null,"url":null,"internal_url":null},{"position":28,"raw":"[Wixted and Carpenter, 2007] John T Wixted and Shana K Carpenter. The wickelgren power law and the ebbinghaus savings function. Psychological Science, 18(2):133-134, 2007.","title":"The wickelgren power law and the ebbinghaus savings function","authors":"T John, Shana K Wixted, Carpenter","year":"2007","venue":"Psychological Science","doi":null,"url":null,"internal_url":null},{"position":29,"raw":"[Zeff and Aronson, 1999] Robbin Lee Zeff and Bradley Aronson. Advertising on the Internet. John Wiley & Sons, Inc., 1999.","title":"Advertising on the Internet","authors":"Robbin Lee, Zeff, Bradley Aronson","year":"1999","venue":null,"doi":null,"url":null,"internal_url":null},{"position":30,"raw":"[Zhang et al., 2014] Weinan Zhang, Shuai Yuan, and Jun Wang. Optimal real-time bidding for display advertising. In Proceedings of the 20th International Conference on Knowledge Discovery and Data Mining, pages 1077-1086, 2014.","title":"Optimal real-time bidding for display advertising","authors":"Weinan Zhang, Shuai Yuan, Jun Wang","year":"2014","venue":"Proceedings of the 20th International Conference on Knowledge Discovery and Data Mining","doi":null,"url":null,"internal_url":null},{"position":31,"raw":"[Zhang et al., 2016] Weinan Zhang, Yifei Rong, Jun Wang, Tianchi Zhu, and Xiaofan Wang. Feedback control of real-time display advertising. In Proceedings of the 9th International Conference on Web Search and Data Mining, pages 407-416, 2016.","title":"Feedback control of real-time display advertising","authors":"Weinan Zhang, Yifei Rong, Jun Wang, Tianchi Zhu, Xiaofan Wang","year":"2016","venue":"Proceedings of the 9th International Conference on Web Search and Data Mining","doi":null,"url":null,"internal_url":null},{"position":32,"raw":"[Zhou et al., 2008] Yunhong Zhou, Deeparnab Chakrabarty, and Rajan Lukose. Budget constrained bidding in keyword auctions and online knapsack problems. In Internet and Network Economics, pages 566-576. 2008.","title":"Budget constrained bidding in keyword auctions and online knapsack problems","authors":"Yunhong Zhou, Deeparnab Chakrabarty, Rajan Lukose","year":"2008","venue":"Internet and Network Economics","doi":null,"url":null,"internal_url":null},{"position":33,"raw":"[Zielske, 1959] Hubert A Zielske. The remembering and for- getting of advertising. the Journal of Marketing, pages 239-243, 1959.","title":"The remembering and forgetting of advertising","authors":"Hubert A Zielske","year":"1959","venue":"the Journal of Marketing","doi":null,"url":null,"internal_url":null}],"license_note":"Copyright International Joint Conferences on Artificial Intelligence."}