Real-time Advertising

Value of an Impression

Many factors influence an advertiser’s willingness to pay for a certain impression on a certain website at a certain time. Knowing beforehand the value of an impression allows for deciding whether this impression should be used to fulfill a guaranteed contract with a fixed number of impressions, or whether it should be sold via an ad exchange.

Buying Strategies and Targeting Mechanisms

One key factor driving the success of real-time advertising is the possibility of impression-level targeting. This opportunity leads to the question of how much information to disclose in order to increase publisher's and ad exchange's profit. More information should increase the value of an impression for a certain advertiser and its willingness to pay. At the same time increased information results in decreased competition and thin markets because of specialization. Besides the information supplied by the publisher, advertisers can buy additional information through so-called data-management platforms, which leads to information asymmetries. These information asymmetries might impact the bidding strategies of advertisers. For example, a well-informed advertiser places high bids on profitable impressions. An uninformed advertiser will bid an average value for every impression, which leads to the situation that he will only receive impressions of lower profitability, because the well-informed advertiser wins these. Publishers that are not informed about the value of their inventory might also face profit losses due to enabling advertisers to “cherry-pick” good impressions. A well-informed publisher for example could set higher reserve prices for advertising impressions that are of higher worth.

Development of the Online Display Advertising Market

Online display advertising is probably the oldest way of online marketing. Yet through the rise of real-time advertising, this field has undergone many changes and is still evolving. In order to be able to compete in this market on the long term, it is crucial to understand the current trends in real-time advertising.

Prior Experience in Search Engine Advertising


We have a lot of experience in search engine advertising and have published in all leading journals of the field (see publications below). Our aim is to conduct high-quality research in real-time advertising and produce useful implications and tools for practice in the coming years.

Dissertations

  • Lilienthal, Markus (2012): "Cloud Pricing and Management", dissertation at Goethe University Frankfurt.
  • Abou Nabout, Nadia (2012): "Optimal Search Engine Marketing", dissertation at Goethe University Frankfurt, Verlag Dr. Kovač, Hamburg.
  • Gerstmeier, Eva (2010): "Interactive Pricing Mechanisms", dissertation at Goethe University Frankfurt, Verlag Dr. Kovač, Hamburg.
  • Stepanchuk, Tanja (2010): "Optimal Pricing Strategies: How Nonlinear Programming Enables Optimal Pricing in Digital Environment", dissertation at Goethe University Frankfurt, Verlag Dr. Kovač, Hamburg.

Journal Publications

  • Skiera, Bernd / Abou Nabout, Nadia (2013): "PROSAD: A Bidding Decision Support System for PRofit Optimizing Search Engine ADvertising", Marketing Science, Vol. 32 (2), 213-220, Finalist in the 2011-12 ISMS-MSI Practice Prize Competition.
  • Abou Nabout, Nadia / Skiera, Bernd (2012): "Return on Quality Improvements in Search Engine Marketing", Journal of Interactive Marketing, Vol. 26 (3), 141-154.
  • Abou Nabout, Nadia / Skiera, Bernd / Stepanchuk, Tanja / Gerstmeier, Eva (2012): "An Analysis of the Profitability of Fee-Based Compensation Plans for Search Engine Marketing", International Journal of Research in Marketing, Vol. 29, 68-80.

Publications in Management Oriented Journals

  • Abou Nabout, Nadia / Skiera, Bernd (2012): "Profitables Brand Bidding im Suchmaschinenmarketing", etailment Beitrag.
  • Skiera, Bernd / Abou Nabout, Nadia / Vogel, Steffen (2012), "Suchmaschinenmarketing: mit spitzer Feder rechnen", Bank und Markt, Heft 3, 38-41.
  • Skiera, Bernd / Lilienthal, Markus (2009): "Am Ende freut sich Google. Eine empirische Untersuchung zeigt: Höhere SEM-Budgets führen keineswegs zwangsläufig zu höheren Conversions" , Internet World Business, 20/09, S. 24.
  • Lilienthal, Markus / Skiera, Bernd (2009): "Suchmaschinenmarketing: Viel hilft nicht viel" , Bankmagazin, 12/2009, S. 40-41.
  • Skiera, Bernd / Gerstmeier, Eva / Stepanchuk, Tanja (2008): "Suchmaschinenmarketing: Rentable Wortwahl" , Absatzwirtschaft, 51. Jg., Sonderausgabe zum Deutschen Marketing-Tag 2008, 51. Jg., S. 154-156.
  • Skiera, Bernd / Gerstmeier, Eva (2008): "Suchmaschinenmarketing: Profitabel Kunden gewinnen" , die bank, Sonderausgabe zur E.B.I.F., S. 50-54.
  • Skiera, Bernd / Stepanchuk, Tanja / Gerstmeier, Eva (2008): "Erfolgsstrategien für das Suchmaschinenmarketing", Wirtschaft und Berufserziehung (11.08), S. 28-32.
  • Skiera, Bernd / Gerstmeier, Eva / Stepanchuk, Tanja / Ziesche, Jörg (2008) "Suchmaschinenmarketing: Profitable Kampagnensteuerung", Bankpraktiker 4(3), S. 138-142.
  • Skiera, Bernd / Gerstmeier, Eva / Stepanchuk, Tetyana (2008) "Stichwort Suchmaschinenmarketing", DBW, Vol. 68, S. 113-118.
  • Skiera, B. (2007) "Werbung in Suchmaschinen kann teuer werden", Frankfurter Allgemeine Zeitung , 01.10.2007.
  • Skiera, B. / Gerstmeier, E. / Stepanchuk, T. / Pfaff, D. (2007) "Potenziale für Unternehmen im Suchmaschinenmarketing", USP - Menschen in Marketing 3/2007, S. 24 -25.
  • Skiera, B. / Gerstmeier, E. / Stepanchuk, T. (2007) "Erfolge kalkulieren", Managementkompass Suchmaschinenmarketing B2B.
  • Skiera, B. / Gerstmeier, E. / Stepanchuk, T. (2007) "Profitable Search Engine Marketing For Financial Services", EFL Quarterly 02/2007.
  • Skiera, B. / Gerstmeier, E. / Stepanchuk, T. (2007) "Suchmaschinenmarketing", in: Bauer, H. H. / GroЯe-Leege, D. / Rццsger, J. (Hrsg.), "Interactive Marketing im Web 2.0 +", München, S. 283-294.
  • Skiera, B. / Gerstmeier, E. / Stepanchuk, T. (2007) "Optimale Positionierung von Suchwortanzeigen", in: Schwarz, T. (Hrsg.), "Leitfaden Online-Marketing", S. 338-343.

Prof. Dr. Bernd Skiera is chaired professor of electronic commerce at Goethe-University in Frankfurt, Germany.

Bernd Skiera

Prof. Dr. Nadia Abou Nabout is professor of interactive marketing & social media at WU Wien, Austria.

Nadia Abou Nabout

Marc Heise is a doctoral student and research assistant at the Chair of Electronic Commerce at Goethe-University in Frankfurt, Germany.

Marc Heise