Online search, as well as keyword-based contextual advertising on third-party publishers, is primarily priced using pay-per-click: advertisers pay only when a consumer clicks on the advertisement. Slots for advertisements are auctioned, and per-click bids are weighted by the probability of a click given that the advertisement is displayed (the click-through rate) in addition to other factors.
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Faculty
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Initiative on Business and Environmental Sustainability
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Research Labs & Initiatives
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