Ad Auction System with Cost-Per-View and Impression Bid Fallback
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
In online advertising, publishers face risks when accepting cost-per-view bids as they may not receive payment if the ad is not viewed, leading to potential losses and missed opportunities for cost-per-impression bids.
Innovation Solution
Implementing a system that accepts both cost-per-view and cost-per-impression bids, where if the cost-per-view bid creative is not viewed within a specified time, the cost-per-impression bid creative is served instead, ensuring payment from either buyer, thus mitigating the risk for the publisher.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of energy
If a publisher accepts only cost-per-view bids, then the publisher may achieve higher potential revenue when ads are viewed, but the publisher faces the risk of not receiving payment if the ad is not viewed
Solution Approach 1:
The system performs preliminary action by obtaining a backup creative from a cost-per-impression bid in advance, before the ad space is actually served. This backup creative is ready to be displayed if the primary cost-per-view creative is not viewed, ensuring that the publisher will receive payment regardless of whether the ad is viewed or not.
Solution Approach 2:
The system applies beforehand cushioning by having a fallback cost-per-impression bid ready to compensate for the risk of the cost-per-view bid not being fulfilled. This cushioning mechanism ensures that the publisher is protected against the risk of non-payment while still allowing them to pursue higher revenue opportunities through cost-per-view bids.
2Reliability
If a publisher accepts only cost-per-impression bids, then the publisher receives guaranteed payment for every ad served, but the publisher misses out on higher revenue opportunities from cost-per-view bids
Solution Approach 1:
The system applies dynamics by making the ad serving strategy flexible and adaptive. Instead of committing to a single pricing model, the system dynamically selects between cost-per-view and cost-per-impression bids based on real-time conditions. The system can switch from a cost-per-view primary bid to a cost-per-impression backup bid if the ad is not viewed, optimizing both revenue potential and payment reliability.
3Device complexity
If the system selects only a single winning bid for an ad space, then the auction process is simple, but the publisher cannot mitigate the risk of not receiving payment from cost-per-view bids
Solution Approach 1:
The system performs preliminary action by selecting and preparing a backup creative from a cost-per-impression bid during the auction process, before the ad space is actually served. This allows the system to maintain a relatively simple single-bid appearance while actually having a fallback mechanism in place to ensure payment security.
Data Source
AI summary
Methods, systems, and apparatus, including computer programs encoded on a computer storage medium, for receiving, from a client device, an ad request for an ad space being for presentation in a user interface of an application on the client device, sending, to bidder systems, a bid request on the ad space, receiving bids from the bidder systems, selecting, from the received bids, a cost-per-view bid corresponding to a first creative and a cost-per-impression bid corresponding to a second creative, and sending a message to the client device wherein the message comprises respective identifiers of the first and second creatives, and wherein the client device is configured to obtain the first creative and present the first creative in the ad space if the ad space is in view one the client device within a specified time period.