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Predicting Hourly Internet Traffic in the RTB System – Panel Approach

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  • Michał Bernardelli

    (SGH Warsaw School of Economics)

Abstract

The aim of this article is to provide a method allowing to control the costs in the real time bidding system related with the bid request traffic. Hourly limits of expenses are predicted based on the historical data. This approach allows to diversify the costs through the whole day, instead spending them immediately at the beginning of the day. To improve the accuracy, a proposed method includes a panel econometric model, where hours are panels. Results are evaluated on the basis of off-line comparison tests between the panel (fixed effects estimator) and non-panel model (ordinary least squares estimator). It turns out, that in most cases the panel method gives more accurate predictions.

Suggested Citation

  • Michał Bernardelli, 2017. "Predicting Hourly Internet Traffic in the RTB System – Panel Approach," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 47, pages 11-26.
    • Handle: RePEc:sgh:annals:i:47:y:2017:p:lis.26
    as

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    File URL: http://rocznikikae.sgh.waw.pl/p/roczniki_kae_z47_01.pdf
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    References listed on IDEAS

    as
    1. Baltagi, Badi H. & Bresson, Georges & Pirotte, Alain, 2003. "Fixed effects, random effects or Hausman-Taylor?: A pretest estimator," Economics Letters, Elsevier, vol. 79(3), pages 361-369, June.
    2. Michał Bernardelli, 2015. "Cheater detection in Real Time Bidding system – panel approach," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 39, pages 11-24.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    real time bidding; fixed effects estimator; panel data; bid request;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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