goodman-ssa2005

goodman-ssa2005 - Pay-Per-Percentage of Impressions An...

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Pay-Per-Percentage of Impressions: An Advertising Method that is Highly Robust to Fraud Joshua Goodman Microsoft Research One Microsoft Way Redmond, WA 425-705-2947 [email protected] ABSTRACT In this paper, we describe a simple method for selling advertising, pay-per-percentage of impressions, that is immune to both click fraud and impression fraud. We describe assumptions required to guarantee the immunity, which impact the design of the system. In particular, ads must be shown in a truly random way, across the percentage of impressions purchased. We describe prefix-match: a system that is similar to broad-match, but more compatible with pay-per-percentage. We show how to auction pay-per-percentage matches, including prefix matches in a revenue maximizing way. Finally, we describe variations on the technique that may make it easier to sell to advertisers. Categories and Subject Descriptors K.4.4 [ Electronic Commerce ]: Payment Schemes General Terms Economics, Security. Keywords Fraud Detection and Prevention, Mechanism Design, and Affiliate Model. Pay-per-percentage. Advertising. Pay-per-click. Cost- Per-Click, Pay-per-Impression. 1. INTRODUCTION Click fraud is "the biggest threat to the Internet economy… Something has to be done about this really, really quickly, because potentially it threatens our business model." -- George Reyes, Google’s CFO Click fraud and other kinds of fraud in online advertising markets are often considered one of the largest potential threats to the online advertising market, especially the market for online search terms. These attacks have been going on for many years [7], and some of the attacks are potentially quite sophisticated [1]. Recently, Google has listed click-fraud as a significant worry, and has admitted to regularly needing to pay refunds because of it [4]. Google has also been the attempted victim of blackmail: Michael Bradley threatened to release a program that would make click fraud easy to conduct and hard to detect. Others, have not attempted blackmail, but simply sell click-fraud enabling products [6]. One way to prevent click fraud is to revert to a pay-per-impression model. In this way, clicking on an ad does not defraud the advertiser (since the advertiser is not charged any additional amount.) However, a strict pay-per-impression model is subject to its own form of fraud, impression fraud, which we will describe later. In this paper, we show that a simple system, pay-per-percentage of impressions, is immune to both click fraud and impression fraud. In this system, an advertiser picks a keyword, e.g. “cameras” and purchases, perhaps through bidding, a certain percentage of all impressions for that keyword. For instance, an advertiser might pay $1.00 to MSN Search. In return, the advertiser might receive 10% of all impressions for “camera” for 1 week. What does this mean? It means that for 1 week, one out of ten times that someone searches for the word “camera”, they will see the ad. If someone
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This note was uploaded on 12/08/2011 for the course CIS 620 taught by Professor Cis620 during the Fall '08 term at UPenn.

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goodman-ssa2005 - Pay-Per-Percentage of Impressions An...

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