"Economics of Web Design" by Yury Lifshits
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This document contains a presentation on web design economics. It discusses an "Anti-AdWords Theorem" which states that under a proposed mathematical model, the design of Google AdWords that separates organic and advertising search results can be "stupid" and improved by another presentation that increases both relevance and revenue. It also covers dynamic design and increasing key numbers for owners and users, and proposes a project to build a hit counter analysis tool.
"Economics of Web Design" by Yury Lifshits
- 1. Economics of Web-Design Yury Lifshits Caltech http://yury.name CS Club, Steklov Institute, 2008 1 / 35
- 2. A camel is a horse designed by a committee Vogue’1958 2 / 35
- 3. A camel is a horse designed by a committee Vogue’1958 Less is more 2 / 35
- 4. A camel is a horse designed by a committee Vogue’1958 Less is more 1855, Robert Browning (English poet) 2 / 35
- 5. Outline 1 Anti-AdWords Theorem 3 / 35
- 6. Outline 1 Anti-AdWords Theorem 2 Dynamic Design 3 / 35
- 7. Outline 1 Anti-AdWords Theorem 2 Dynamic Design 3 Hit Counter Project Proposal 3 / 35
- 8. 1 Anti-AdWords Theorem 4 / 35
- 9. Problem Statement Given 10 organic search results and 5 sponsored results place them on 15 slots on a webpage 5 / 35
- 10. Math model (1/2) Every link i: Price pi Relevance ri 6 / 35
- 11. Math model (1/2) Every link i: Price pi Relevance ri Attractiveness ai 6 / 35
- 12. Math model (1/2) Every link i: Price pi Relevance ri Attractiveness ai Every slot j: Attention share sj 6 / 35
- 13. Math Model (2/2) Matching M: Place every link i to slot j = M(i) 7 / 35
- 14. Math Model (2/2) Matching M: Place every link i to slot j = M(i) User clicks on link i with probability proportional to sM(i) + ai 7 / 35
- 15. Payoffs Expected relevance: 8 / 35
- 16. Payoffs Expected relevance: 15 Rel(M) = (sM(i) + ai) · ri i=1 8 / 35
- 17. Payoffs Expected relevance: 15 Rel(M) = (sM(i) + ai) · ri i=1 Expected revenue: 8 / 35
- 18. Payoffs Expected relevance: 15 Rel(M) = (sM(i) + ai) · ri i=1 Expected revenue: 15 Rev(M) = (sM(i) + ai) · pi i=1 8 / 35
- 19. Payoffs Expected relevance: 15 Rel(M) = (sM(i) + ai) · ri i=1 Expected revenue: 15 Rev(M) = (sM(i) + ai) · pi i=1 Attractiveness is not important 8 / 35
- 20. Pareto-Optimal Matching M is Pareto-Optimal iff there is no M such that Rel(M) < Rel(M ), Rev(M) < Rev(M ) 9 / 35
- 21. Pareto-Optimal Matching M is Pareto-Optimal iff there is no M such that Rel(M) < Rel(M ), Rev(M) < Rev(M ) Otherwise M is stupid 9 / 35
- 22. Example (1/2) Attention Link Relevance Price 50% O1 2 - 40% A1 0 25$ 10% A2 1 20$ 1.1 12$ 10 / 35
- 23. Example (2/2) Attention Link Relevance Price 50% A2 1 20$ 40% O1 2 - 10% A1 0 25$ 1.3 12.5$ 11 / 35
- 24. Anti-AdWords Left — organic, right — advertising 12 / 35
- 25. Anti-AdWords Left — organic, right — advertising Under presented model AdWords design can be stupid 12 / 35
- 26. Anti-AdWords Left — organic, right — advertising Under presented model AdWords design can be stupid That is, another presentation can improve both relevance and revenue 12 / 35
- 27. Notation Page attention structure P: 20% 18% 15% . . . 4% 2% 13 / 35
- 28. Notation Page attention structure P: 20% 18% 15% . . . 4% 2% Fixed design D: Ad slots, organic slots 20% 18% 15% . . . 4% 2% 13 / 35
- 29. Anti-AdWords Theorem ∀P ∀∗ D ∃ links L such that any matching M ∈ D is stupid for L 14 / 35
- 30. Alternative to AdWords Single list for sponsored and organic results 15 / 35
- 31. Alternative to AdWords Single list for sponsored and organic results Tradeoff ranking 15 / 35
- 32. Further questions Do we need to keep 10 Organic guarantee? 16 / 35
- 33. Further questions Do we need to keep 10 Organic guarantee? Adwords redundancy? 16 / 35
- 34. Further questions Do we need to keep 10 Organic guarantee? Adwords redundancy? Quantify possible Adwords inprovements 16 / 35
- 35. Further questions Do we need to keep 10 Organic guarantee? Adwords redundancy? Quantify possible Adwords inprovements Find all rankings on a trade-off curve 16 / 35
- 36. 2 Dynamic Design 17 / 35
- 37. Increase Key Numbers Owners utility User utility 18 / 35
- 38. Key Numbers for Owner 19 / 35
- 39. Key Numbers for Owner Ad revenue Number of users Volume of content Amount of feedback User time online Brand recognition 19 / 35
- 40. Key Numbers for User 20 / 35
- 41. Key Numbers for User # of matches (dating) # of job offers # of answers (QA) # interesting stories (news) # of compliments (social networks) 20 / 35
- 42. Design = tool for increasing key numbers 21 / 35
- 43. Main Challenge 22 / 35
- 44. Main Challenge Quantify Design 22 / 35
- 45. Design Decisions What to display With what priorities? 23 / 35
- 46. Quantify Internal Priorities Attention budgets and auctions 24 / 35
- 47. Dynamic Design Choices based on opportunity (user, action, time) knowledge 25 / 35
- 48. Design Mechanisms 26 / 35
- 49. Design Mechanisms Chosen by owner Fresh User voted Random Personalized Paid 26 / 35
- 50. Minimalism? Design complexity = # of links Links with CTR < .001 are worse than ads One random big instead many static small 27 / 35
- 51. Links to kill Amazon: “Add to wedding registry” Google: “Report yourself” Yahoo: “Horoscopes” 28 / 35
- 52. Django MTV Tricks Template inheritance If/for loops in templates Exceptions 29 / 35
- 53. 3 Hit Counter Project Proposal 30 / 35
- 54. Hit Analysis Easy: incoming hits Hard: outgoing hits 31 / 35
- 55. Outgoing Hits Ajax solution 32 / 35
- 56. Outgoing Hits Ajax solution Can be blocked 32 / 35
- 57. Outgoing Hits Ajax solution Can be blocked Inverted index 32 / 35
- 58. Outgoing Hits Ajax solution Can be blocked Inverted index 32 / 35
- 59. Outgoing Hits Ajax solution Can be blocked Inverted index Internal hits only Goto 32 / 35
- 60. Outgoing Hits Ajax solution Can be blocked Inverted index Internal hits only Goto Bad for SEO 32 / 35
- 61. Call for Feedback Volunteers for hit counter project? 33 / 35
- 62. Links http://yury.name Homepage http://yury.name/newweb.html Tutorial “The New Web” http://yury.name/reputation.html Tutorial “Reputation Systems” 34 / 35
- 63. Thanks for your attention! Questions? 35 / 35