3min chapter

Data Skeptic cover image

Adwords with Unknown Budgets

Data Skeptic

CHAPTER

The Uncertainty of Ad Budgets

When google is conducting this auction, they're going to apply optimization strategies. Each one has ha this common, inherent uncertainty that they need to think about as they figure out what's the obtumal allocation. If i just make a greedy decision that does the best right now for whatever objective, that really need not be the best way to go about making allocations. I don't want to be overly reductive, but i'm thinking of fe like advertisements for umbrellas. And on a day it rains, maybe there's more searches and more purchases. Google didn't necessarily know it was going to rain, so if all the ad budgets were spent earlier on there would be a loss

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