Methods for improving sponsored search revenue are often tested or deployed within a small submarket of the larger marketplace. For many applications, the ideal submarket contains a small number of nodes, a large amount of spend-ing within the submarket, and a small amount of spending leaving the submarket. We introduce an efficient algorithm for finding submarkets that are optimal for a user-specified tradeoff between these three quantities. We apply our algo-rithm to find submarkets that are both dense and isolated in a large spending graph from Yahoo! sponsored search.
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