GSP based Internet ads auction

Internet, which is developing so rapidly as an advertising media, is becoming an irreplaceable marketing channel. In recent years, search engine giant Google uses a new mechanism of advertising auction based on Generalized Second Price (GSP) is a global research hot spot. How to extend this mechanism to more websites where there is sales auction is becoming a hot question in this industry. Based on this purpose, this paper presents a model of GSP based Internet advertising auction and discusses the advertiser revenue and the conditions of Nash equilibrium under it. According to the Nash equilibrium conditions, the numeric area of seller revenue is caculated.