An Optimal Mechanism for Sponsored Search Auctions on the Web and Comparison With Other Mechanisms

In this paper, we first describe a framework to model the sponsored search auction on the web as a mechanism design problem. Using this framework, we describe two well-known mechanisms for sponsored search auction-Generalized Second Price (GSP) and Vickrey-Clarke-Groves (VCG). We then derive a new mechanism for sponsored search auction which we call optimal (OPT) mechanism. The OPT mechanism maximizes the search engine's expected revenue, while achieving Bayesian incentive compatibility and individual rationality of the advertisers. We then undertake a detailed comparative study of the mechanisms GSP, VCG, and OPT. We compute and compare the expected revenue earned by the search engine under the three mechanisms when the advertisers are symmetric and some special conditions are satisfied. We also compare the three mechanisms in terms of incentive compatibility, individual rationality, and computational complexity. Note to Practitioners-The advertiser-supported web site is one of the successful business models in the emerging web landscape. When an Internet user enters a keyword (i.e., a search phrase) into a search engine, the user gets back a page with results, containing the links most relevant to the query and also sponsored links, (also called paid advertisement links). When a sponsored link is clicked, the user is directed to the corresponding advertiser's web page. The advertiser pays the search engine in some appropriate manner for sending the user to its web page. Against every search performed by any user on any keyword, the search engine faces the problem of matching a set of advertisers to the sponsored slots. In addition, the search engine also needs to decide on a price to be charged to each advertiser. Due to increasing demands for Internet advertising space, most search engines currently use auction mechanisms for this purpose. These are called sponsored search auctions. A significant percentage of the revenue of Internet giants such as Google, Yahoo!, MSN, etc., comes from sponsored search auctions. In this paper, we study two auction mechanisms, GSP and VCG, which are quite popular in the sponsored auction context, and pursue the objective of designing a mechanism that is superior to these two mechanisms. In particular, we propose a new mechanism which we call the OPT mechanism. This mechanism maximizes the search engine's expected revenue subject to achieving Bayesian incentive compatibility and individual rationality. Bayesian incentive compatibility guarantees that it is optimal for each advertiser to bid his/her true value provided that all other agents also bid their respective true values. Individual rationality ensures that the agents participate voluntarily in the auction since they are assured of gaining a non-negative payoff by doing so.

Analytical models for capacity estimation of IEEE 802.11 WLANs using DCF for internet applications

We provide analytical models for capacity evaluation of an infrastructure IEEE 802.11 based network carrying TCP controlled file downloads or full-duplex packet telephone calls. In each case the analytical models utilize the attempt probabilities from a well known fixed-point based saturation analysis. For TCP controlled file downloads, following Bruno et al. (In Networking '04, LNCS 2042, pp. 626-637), we model the number of wireless stations (STAs) with ACKs as a Markov renewal process embedded at packet success instants. In our work, analysis of the evolution between the embedded instants is done by using saturation analysis to provide state dependent attempt probabilities. We show that in spite of its simplicity, our model works well, by comparing various simulated quantities, such as collision probability, with values predicted from our model. Next we consider N constant bit rate VoIP calls terminating at N STAs. We model the number of STAs that have an up-link voice packet as a Markov renewal process embedded at so called channel slot boundaries. Analysis of the evolution over a channel slot is done using saturation analysis as before. We find that again the AP is the bottleneck, and the system can support (in the sense of a bound on the probability of delay exceeding a given value) a number of calls less than that at which the arrival rate into the AP exceeds the average service rate applied to the AP. Finally, we extend the analytical model for VoIP calls to determine the call capacity of an 802.11b WLAN in a situation where VoIP calls originate from two different types of coders. We consider N-1 calls originating from Type 1 codecs and N-2 calls originating from Type 2 codecs. For G711 and G729 voice coders, we show that the analytical model again provides accurate results in comparison with simulations.

CAVVA: Computational Affective Video-in-Video Advertising

Advertising is ubiquitous in the online community and more so in the ever-growing and popular online video delivery websites (e. g., YouTube). Video advertising is becoming increasingly popular on these websites. In addition to the existing pre-roll/post-roll advertising and contextual advertising, this paper proposes an in-stream video advertising strategy-Computational Affective Video-in-Video Advertising (CAVVA). Humans being emotional creatures are driven by emotions as well as rational thought. We believe that emotions play a major role in influencing the buying behavior of users and hence propose a video advertising strategy which takes into account the emotional impact of the videos as well as advertisements. Given a video and a set of advertisements, we identify candidate advertisement insertion points (step 1) and also identify the suitable advertisements (step 2) according to theories from marketing and consumer psychology. We formulate this two part problem as a single optimization function in a non-linear 0-1 integer programming framework and provide a genetic algorithm based solution. We evaluate CAVVA using a subjective user-study and eye-tracking experiment. Through these experiments, we demonstrate that CAVVA achieves a good balance between the following seemingly conflicting goals of (a) minimizing the user disturbance because of advertisement insertion while (b) enhancing the user engagement with the advertising content. We compare our method with existing advertising strategies and show that CAVVA can enhance the user's experience and also help increase the monetization potential of the advertising content.

Probabilistic Prediction based Scheduling for Delay Sensitive Traffic in Internet of Things

This paper proposes a probabilistic prediction based approach for providing Quality of Service (QoS) to delay sensitive traffic for Internet of Things (IoT). A joint packet scheduling and dynamic bandwidth allocation scheme is proposed to provide service differentiation and preferential treatment to delay sensitive traffic. The scheduler focuses on reducing the waiting time of high priority delay sensitive services in the queue and simultaneously keeping the waiting time of other services within tolerable limits. The scheme uses the difference in probability of average queue length of high priority packets at previous cycle and current cycle to determine the probability of average weight required in the current cycle. This offers optimized bandwidth allocation to all the services by avoiding distribution of excess resources for high priority services and yet guaranteeing the services for it. The performance of the algorithm is investigated using MPEG-4 traffic traces under different system loading. The results show the improved performance with respect to waiting time for scheduling high priority packets and simultaneously keeping tolerable limits for waiting time and packet loss for other services. Crown Copyright (C) 2015 Published by Elsevier B.V.

CheepSync: A Time Synchronization Service for Resource Constrained Bluetooth LE Advertisers

Clock synchronization is highly desirable in distributed systems, including many applications in the Internet of Things and Humans. It improves the efficiency, modularity, and scalability of the system, and optimizes use of event triggers. For IoTH, BLE - a subset of the recent Bluetooth v4.0 stack - provides a low-power and loosely coupled mechanism for sensor data collection with ubiquitous units (e.g., smartphones and tablets) carried by humans. This fundamental design paradigm of BLE is enabled by a range of broadcast advertising modes. While its operational benefits are numerous, the lack of a common time reference in the broadcast mode of BLE has been a fundamental limitation. This article presents and describes CheepSync, a time synchronization service for BLE advertisers, especially tailored for applications requiring high time precision on resource constrained BLE platforms. Designed on top of the existing Bluetooth v4.0 standard, the CheepSync framework utilizes low-level time-stamping and comprehensive error compensation mechanisms for overcoming uncertainties in message transmission, clock drift, and other system-specific constraints. CheepSync was implemented on custom designed nRF24Cheep beacon platforms (as broadcasters) and commercial off-the-shelf Android ported smartphones (as passive listeners). We demonstrate the efficacy of CheepSync by numerous empirical evaluations in a variety of experimental setups, and show that its average (single-hop) time synchronization accuracy is in the 10 mu s range.