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市场营销系学术讲座系列第四十讲

发布日期:2014-05-15

Theme:Position Auctions with Budget-Constrained Advertisers
Speaker:Yi Zhu, Assistant Professor, Department of Marketing Carlson School of Management, University of Minnesota
Time:p.m. 2:00, May 16th  , 2014
Venue:Room 304,Mingde Business Building


Abstract of the lecture
This paper examines position auctions with budget-constrainedadvertisers – a dominant bidding environment used by publishers toallocate positions in online advertising. As we show, budgetconstraints play a crucial role in bidding strategy. We provide acomprehensive analysis of this auction and identify three newcategories of bid strategies used by advertisers in equilibrium (i)aggressive: bid jamming; (ii) defensive: jamming protection; and (iii)semi-aggressive: budget pegging. We then examine the implicationof budget sizes on advertisers’ profits and publisher’s revenues.There exists a situation in which an advertiser’ profit strictlydecreases with her budget. In addition, publisher’s revenue candecrease with an increase in an advertiser’s budget. This happenswhenever a budget increase (i) reduces the aggressiveness ofbidding strategies or (ii) enhances a high-value advertiser to bid fora higher position. In an extension, we consider advertisers’ budgetdecisions as endogenous and discover an inverted-U relationshipbetween the publisher’s revenue and the opportunity cost ofadvertising budgets. Several managerial implications for bothadvertisers and publishers are discussed.
Short Bio
Yi Zhu’s research aims to advance our understanding of marketing processes in light of the rise of digital technologies and new media. He uses both theoretical and empirical industrial organization lens to study marketing topics, including online auctions, searchadvertising, and media slant and Chinese economy. His recent works have appeared or forthcoming at Marketing Science and Management Science. He serves as an ad hoc reviewer for several top business journals and international conferences, includingMarketing Science, Management Science, Journal of Marketing Research, Information Systems Research, Marketing Letters, International Conference on Information Systems, and others.
Yi Zhu holds a PhD in business administration from the University of Southern California and an MA in economics from the University of British Columbia. Prior to his graduate studies, he worked at Shanghai Investment Consulting Corporation, where heconsulted for fortune 500 companies like DuPont and BASF.
Among 2013 graduates at USC, Zhu is one of the six awardees of the 2013 USC PhD Achievement Award. He has also won the 2011 James S. Ford/Commerce Associates Ph.D. Fellowship and many other awards during his time at USC. His dissertation has won Shankar-Spiegel Best Dissertation Proposal Award and received CIBER dissertation grant. His other research was funded by Net Institute Grant and the Marketing Science Institute. Zhu was recognized by the Chinese Ministry of Education to be one of the top nine Chinese doctoral students studying abroad for his outstanding academic achievement and research in 2012 —among all graduate students across all subjects.