Many advertisers hire agencies to run their search engine marketing campaigns; increasingly, they are using innovative performance-based compensation plans, in which they pay the agency a fee for each conversion (i.e., acquired customer) but require the agency to pay all search engine marketing...

This paper reports on a large-scale implementation of marketing science models to solve the bidding problem in search engine advertising. In cooperation with the online marketing agency SoQuero, we developed a fully automated bidding decision support system, PROSAD (Profit Optimizing Search...

This paper reports on a large-scale implementation of marketing science models to solve the bidding problem in search engine advertising. In cooperation with the online marketing agency SoQuero, we developed a fully automated bidding decision support system, PROSAD (Profit Optimizing Search...