EVOLUTION OF AUCTION MECHANISMS: FROM CLASSICAL FORMAT TO DIGITAL ADVERTISING AUCTIONS AND THE TASK OF THREE-SIDE OPTIMIZATION

Bogdanov Nikita Romanovich, Saradgishvili Sergey Erikovich

The article examines the evolution of auction mechanisms from classical formats (English, Dutch, first-price, and second-price auctions) to modern digital advertising auctions. The paper substantiates the formulation of a three-sided optimization problem for advertising auctions, which simultaneously accounts for the interests of the platform (revenue maximization), the advertiser (campaign cost-effectiveness), and the user (quality and relevance of advertising). Drawing on auction theory, game theory, and contemporary industry practices, it is demonstrated that the transition to multi-attribute and algorithmically managed auctions represents a natural stage of institutional development. The paper concludes that a formal multi-criteria optimization model is required, incorporating strategic behavior constraints and long-term user-experience effects.

Keywords:auction theory, advertising auctions, GSP, VCG, multi-criteria optimization, programmatic advertising, ad quality, algorithmic bidding