Group items tagged

Public relations pitches; pitches and PR; case 

Keyword Search Advertising and Limited Budgets Abstract In keyword search advertising, many advertisers operate on a limited budget. Yet how limited budgets affect keyword search advertising has not been extensively studied. This paper offers an analysis of the generalized second-price auction with budget constraints. We find that the budget constraint may induce advertisers to raise their bids to the highest possible amount for two different motivations: to accelerate the elimination of the budget-constrained competitor as well as to reduce their own advertising cost. Thus, in contrast to the current literature, our analysis shows that both budget-constrained and unconstrained advertisers could bid more than their own valuation. We further extend the model to consider dynamic bidding and budget-setting decisions. Keywords: Keyword Search Advertising, Budget Constraint, Generalized Second-Price Auction, Online Advertising, Competitive Bidding Strategy, Analytical Model.