Rearch Of The Problems In Search Engine Advertsing

With the inflationary increase in the number of Internet users and web pages,search engine has already become the important bridge connecting the user and thewebsite. Search engine advertising,which search engine launchs using the platformadvantage,develops quickly,has become the main source of income to search enginesand has attracted wide attention of scholars.Over the past10years, search engine advertising also has some problems when itdevelpes rapidly.This paper mainly studies two problems:strategic bidding and clickfraud. Strategic bidding refers that advertisers compete a higher slot through adjustinghis bid constantly in the search engines auction, it makes the rank of the advertisings inthe search engines results page changes frequntly and decreased the stability of thesearch engines.The stability of the search engines, which impacts the auctionmechanism, the user experience and the allocation efficiency, is very important tosearch engine advertising.This paper studies how to improve the stability of the searchengines. This paper introduces the weighting factor into the popular genera-lizedsecond price auction(GSP), which can increase the cost if the competitors want to winthe auction, then maybe improve the stability of search engines.In the continuous period,advertisers alternate bid and their weights depend on their slots in the previous period.The advertiser who had the high slot in the previous period has a higher weight value.Inaddition, this paper also studied the impactions to advertisers bid and search engines’income and so on with introducing the weighting factor.According to Baidu’s definition,click fraud means all the clicks that fradulent or with fraudulent intention andacknowledged by search engines. Click fraud wastes advetisers costs, and never bringany value to advetisers, which is called the biggest problem to search engines afterintroducing the pay-per-click(PPC)mechanism into search engines auction.The existingstudy of click fraud is relatively few, and mostly focus on how to develop bettertechnology to improve search engines’ abiltiy of screening fraudulent clicks. Operatorscan gain more income or better slot form fraud-lent clicks, who has motivation to click.This paper put forward countermeasures through optimizing screening technology andeliminating the economic motivation to solve click fraud.Research shows that compared with the original GSP mechanism, the newmechanism with the weighting factor improves the stability of search engines when advertises make “stable equlibrium”, increases the income of search engines whenadvertises make “edgeworth equlibrium”. In general, introducing the bid-weighting intosearch engines auction improve the stabiltiy but decrease the revenue to search enginesin the short term, but improve both the stabiltiy and revenue in the long term.Throuththe analysis of economic motivation with operators, this paper finds that the key toslove click fraud is to establish trust among advetsers, publishers and search engines. Atlast, this paper gives some feasible suggestions which can help search engines sloveclick fraud.