Auction for Double-Wide Ads
Jonathan Gu, David Pal, Kevin Ryan

TL;DR
This paper introduces an auction mechanism for online ads that can occupy single or double grid squares, optimizing layout and pricing for retail website product displays, extending the GSP auction framework.
Contribution
It presents efficient algorithms for optimal ad layout and pricing in a grid-based auction, tailored for retail website product displays, generalizing the GSP auction.
Findings
Algorithms efficiently compute optimal ad layouts.
The auction generalizes the GSP framework for grid-based ads.
Applicable to retail websites like Amazon and Instacart.
Abstract
We propose an auction for online advertising where each ad occupies either one square or two horizontally-adjacent squares of a grid of squares. Our primary application are ads for products shown on retail websites such as Instacart or Amazon where the products are naturally organized into a grid. We propose efficient algorithms for computing the optimal layout of the ads and pricing of the ads. The auction is a generalization of the generalized second-price (GSP) auction used by internet search engines (e.g. Google, Microsoft Bing, Yahoo!).
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Taxonomy
TopicsConsumer Market Behavior and Pricing · Auction Theory and Applications · Digital Platforms and Economics
