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Princeton University
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Computer Science 448
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For this writeup you will assume an online advertising network. You will work in groups. Both group partners will submit a file writeup_5.txt individually. And you will submit another file cost_5.txt as a group (designate one person to submit this file, and mention the name of the other group partner). The word limit for writeup_5.txt is reduced to 300 words for this writeup. The word limit for cost_5.txt is also 300 words.
Real-time Bidding has been proposed as a way to get external demand into your online advertising platform. In response to concerns about cost, a "Bid Gateway" design has been proposed. Instead of individual ad servers that run the auction calling out to external systems to obtain their bids, an impression causes the bid gateway to make requests of the external systems, to receive the replies (bids), and to return them to the ad servers for incorporation in the auction.
The rest of your management team is getting more bought in. However, this is a key strategic question for the company, so they want to understand the main drivers of cost and of increased revenue.
For this writeup, each team should:For the writeup, think broadly, not just about the cost model. You're encouraged to use arguments based on all kinds of matters, including revenue modeling, efficiency, alternative paths, etc. You are welcome to use arguments based on the cost model (that you developed as a group) as well.
- In a group: Prepare a cost model that includes the main drivers of additional cost in operating this infrastructure (beyond the current cost of ad serving i.e., without real-time bidding). Describe the key parameters in your cost model, write down the final cost equation, and compute the costs for three different potential scenarios (each scenario being a set of values for the parameters). Submit this as cost_5.txt.
- Individual: One team member writes a memo saying why they think real-time bidding is a good idea that the company should build and pursue. Submit this as writeup_5.txt.
- Individual: The other team member writes a memo saying why real-time bidding is not a good idea. Again, submit this as writeup_5.txt