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<article-title>An Advanced Bidding Agent for Advertisement Selection on Public Displays</article-title>
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<author><a href="mailto:acr@ecs.soton.ac.uk"><name>Alex Rogers</name></a></author>
<aff>Electronics and Computer Science<br/> University of Southampton, Southampton, SO17 1BJ, UK</aff>

<author><a href="mailto:astrdod@ash-college.ac.il"><name>Esther David</name></a></author>
<aff>Ashkelon College, Ashkelon, Israel.</aff>

<author><a href="mailto:trp@ecs.soton.ac.uk"><name>Terry R. Payne</name></a></author>
<aff>Electronics and Computer Science<br/> University of Southampton, Southampton, SO17 1BJ, UK</aff>

<author><a href="mailto:nrj@ecs.soton.ac.uk"><name>Nicholas R. Jennings</name></a></author>
<aff>Electronics and Computer Science<br/> University of Southampton, Southampton, SO17 1BJ, UK</aff>


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<title>ABSTRACT</title>
<p>In this paper we present an advanced bidding agent that participates
in first-price sealed bid auctions to allocate advertising space
on <italic>BluScreen</italic> &#8211; an experimental public advertisement system that
detects users through the presence of their Bluetooth enabled devices.
Our bidding agent is able to build probabilistic models of
both the behaviour of users who view the adverts, and the auctions
that it participates within. It then uses these models to maximise the
exposure that its adverts receive. We evaluate the effectiveness of
this bidding agent through simulation against a range of alternative
selection mechanisms including a simple bidding strategy, random
allocation, and a centralised optimal allocation with perfect foresight.
Our bidding agent significantly outperforms both the simple
bidding strategy and the random allocation, and in a mixed population
of agents it is able to expose its adverts to 25% more users than
the simple bidding strategy. Moreover, its performance is within
7.5% of that of the centralised optimal allocation despite the highly
uncertain environment in which it must operate.</p>
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