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This paper provides a method for planing the optimal daily budget in the online sponsored search advertising market, which is now the most important marketing place. The proposed method is mainly based the well-known newsboy model, which has been widely applied in single period inventory management settings. We model this budget optimization question as a decision problem under a situation where both the future price and demand are uncertain. We also indicate that advertisers will invest more money in the SSA market if the potential profit of clicks in this market is relatively larger than the financial cost of money.

Daily Budget Optimization Basedon the Newsboy Model for Advertisers in the SSA Markets