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Designing Auctions for Search Ads

Kshipra Bhawalkar Lane

In search ads auctions today, ads can show with a number of different decorations that provide users with relevant information like phone number, seller ratings, or quick access to other pages on the advertiser's website. These decorations change the height of the ad and affect how many clicks it gets. This changed landscape has created a need to rethink how the search ad auction is run. Naive extensions of the existing auction can create highly inefficient allocations or bad incentives for advertisers. In this talk, I will discuss theoretical approaches for adapting a search ad auction to the world with rich ads. The talk also provides some takeaways that can be applied to solve general auction design problems.