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We consider an online ad network problem in which an ad exchange auctions adslots and intermediaries called demand side platforms (DSPs) buy these ad slotsfor their clients (advertisers). An intermediary represents multipleadvertisers. Different types of ad slots are auctioned by the ad exchange,e.g., video ad, banner ad etc. We study repeated posted price auctions forhomogeneous and heterogeneous items when there is an intermediary. In a postedprice auction, the auctioneer sets a fixed reserve price. The buyer can acceptthe price and win the ad slot or reject the price.  We analyze the system from the auctioneer's perspective and show that theoptimal reserve price is dynamic for heterogeneous items. We also investigatesystem from intermediary's perspective and devise algorithms for schedulingadvertisers. Often the advertisers have budget constraints and impressionconstraints. We formulate a revenue optimization problem at the intermediaryand also consider the problem of scheduling advertisers with budget andimpression constraints. Finally, we present a numerical study for the singleseller and advertiser model which considers various valuation distributionssuch as uniform, exponential and lognormal.

Online repeated posted price auctions with a demand side platform