Activity-Based Advertising Payment System
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Solution Overview
Problem
Existing Internet advertising systems struggle to accurately predict and target users' activities, leading to inefficiencies in delivering activity-based advertisements, which limits their effectiveness and incentivizes advertisers to invest in conventional methods.
Innovation Solution
A system that predicts users' future activities based on contextual data and confirms predictions to charge advertisers only when the predicted activities occur, using a pay-per-confirmed-prediction model that auctions advertising opportunities and allows for bid adjustments based on prediction accuracy, incorporating insurance options for advertisers.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If activity-based advertising is delivered to mobile devices, then advertising effectiveness is improved by targeting customer needs dynamically, but prediction accuracy of customer future activity deteriorates due to the dynamic and uncertain nature of mobile user behavior
Solution Approach 1:
The patent implements dynamic prediction models that continuously adapt to changing user behavior patterns in mobile environments. The system updates activity predictions in real-time based on new contextual data, allowing the advertising system to maintain effectiveness despite the inherently dynamic and uncertain nature of mobile user behavior.
Solution Approach 2:
The system changes prediction parameters and confidence thresholds based on the specific context and user profile. By adjusting the stringency of prediction criteria according to different situations, the system balances between achieving accurate predictions and maintaining advertising effectiveness across diverse mobile usage scenarios.
2Area of stationary object
If advertisers pay for activity-based advertising based on predictions, then advertising reach is improved, but financial risk increases when predictions are inaccurate
Solution Approach 1:
The patent implements a payment model where advertisers pay partially based on prediction confidence levels. When predictions have lower confidence, advertisers pay reduced amounts or receive refunds, allowing the system to maintain broad advertising reach while protecting advertisers from excessive financial risk when prediction accuracy is uncertain.
Solution Approach 2:
The system establishes a feedback loop where actual user behavior outcomes are fed back to adjust future payment amounts. Advertisers receive feedback on prediction accuracy, and subsequent payments are adjusted based on this feedback, creating a self-regulating mechanism that balances advertising reach with financial risk management.
3Stability of the object's composition
If conventional advertising methods are used, then advertiser investment is stable and predictable, but advertising targeting capability deteriorates compared to activity-based approaches
Solution Approach 1:
The patent creates a universal advertising platform that can accommodate both conventional and activity-based advertising approaches within a single system. Advertisers can choose their preferred level of engagement and payment structure, allowing the system to maintain investment stability for conservative advertisers while providing advanced targeting capabilities for those willing to embrace activity-based advertising.
Data Source
AI summary
One embodiment of the present invention provides a system for facilitating presentation of activity-based advertising. During operation, the system receives a set of contextual data of a customer and makes a prediction of the customer's future activity. The system then receives a number of advertisements from the advertisers. Based on the prediction, the system chooses a received advertisement to present to the customer. The system further determines the customer's subsequent activity and confirms the prediction of the customer's activity. The system then receives payments from the advertisers whose advertisement is presented based on whether the prediction is confirmed.