The Intelligent Systems Series publishes reference works and handbooks in three core sub-topic areas: Intelligent Automation, Intelligent Transportation Systems, and Intelligent Computing. They include theoretical studies, design methods, and real-world implementations and applications. The series' readership is broad, but focuses on engineering, electronics, and computer science.

Budget constraints and optimization in sponsored search auctions takes into account consideration of the entire life cycle of campaigns for researchers and developers working on search systems and ROI maximization. The highly experienced authors compiled their knowledge and experience to provide insight, algorithms and development techniques for successful optimized/constrained systems. The book presents a cutting-edge budget optimization approach that embraces three-level budget decisions in the life cycle of search auctions: allocation across markets at the system level, distribution over temporal slots at the campaign level, and real-time adjustment at the keyword level.

Key Features

  • Delivers a systematic overview and technique for understanding budget constraints and ROI optimization in sponsored search auction systems, including algorithms and developer guides for a range of scenarios
  • Explores effects of constraints on mechanisms, bidding and keyword strategies, and the strategies for budget optimization that developers can employ
  • An informative reference source for both software and systems developers working in the search auctions, marketing and sales strategy optimization, services development for online marketing and advertisement, e-commerce, social and economic networking


Computer Engineers; Intelligent Systems specialists. Security professionals

Table of Contents


Chapter 1. Search Engine Meets Economics


1.1 The Web and Search Engines

1.2 Internet and Search Economics, Search Engine Marketing

1.3 A First Glimpse of Sponsored Search Auctions

1.4 Understanding the Budget in Sponsored Search Auctions

1.5 How this Book is Organized


Chapter 2. Budget Constraints in Sponsored Search Auctions


2.1 Introduction

2.2 Budget-Constrained Sponsored Search Auctions

2.3 Summary


Chapter 3. Budget Optimization in Sponsored Search Auctions


3.1 Introduction

3.2 Budget Decision Scenarios

3.3 The Necessity of Budget Optimization

3.4 A Budget Taxonomy in Sponsored Search Auctions

3.5 Discussions

3.6 Conclusions


Chapter 4. A Budget Optimization Framework for Search Advertisements


4.1 Introduction

4.2 Challenges

4.3 A Budget Optimization Framework

4.4 Mathematics of the Budget Optimization Framework

4.5 The Framework Instantiation

4.6 Experiments and Validation

4.7 Discussions

4.8 Conclusions


Chapter 5. The First Step to Allocate Advertising Budget in Sponsored Search Auctions


5.1 Introduction

5.2 Problem Statement

5.3 Budget Initialization

5.4 Budget Adjustment

5.5 Experimental Validation

5.6 Conclusions


Chapter 6. Optimal Budget Allocation Across Search Markets


6.1 Introduction

6.2 Modeling Elements

6.3 Optimal Budget Allocation Across Search Markets

6.4 Experimental Validation

6.5 Conclusions


Chapter 7. Budget Allocation In Competitive Search Advertisements, Part I: In Static Environments



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© 2014
Academic Press
Print ISBN:
Electronic ISBN:

About the authors

Feiyue Wang

Fei-Yue Wang is a State Specially Appointed Expert and Professor at the National University of Defense Technology and the Chinese Academy of Sciences. Currently Prof. Yang is the Editor-in Chief of the IEEE Intelligent Systems and IEEE transactions on Intelligent Transportation Systems. He is a fellow of IEEE, INCOSE, IFAC, ASME and AAAS.

Yanwu Yang

Yanwu Yang is an Associate Professor at the Chinese Academy of Sciences. He is also an INFORMS member, and the Secretary of the ACM Chapter on Social and Economic Computing.