Ad Network Optimization via Tiered Frequency Cap Adjustment

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Solution Overview

Problem

Online advertising networks face challenges in maximizing revenue due to the fragmentation of the market among numerous ad networks, leading to inefficiencies in ad placement and revenue generation for website publishers.

Innovation Solution

An ad optimization platform that tiers ad networks based on pricing data and adjusts frequency caps to optimize ad placement, ensuring higher-revenue generating ad networks are prioritized and utilized more frequently.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Adaptability or versatility

If ad networks are fragmented among numerous networks, then ad placement options increase, but revenue generation efficiency decreases

Engineering Contradiction:
Improvead placement optionsVSAvoidrevenue generation efficiency
Core Design Contradiction:
Adaptability or versatilityVSProductivity

Solution Approach 1:

The patent segments ad networks into multiple tiers based on performance metrics such as fill rate, CPM, and response time. This segmentation allows the system to manage numerous ad networks efficiently by organizing them into hierarchical groups, where higher-tier networks are prioritized for ad placement. This resolves the contradiction by maintaining diverse ad placement options while improving revenue efficiency through structured selection.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent applies local quality by assigning different characteristics and priorities to different segments (tiers) of ad networks. Higher tiers receive preferential treatment in ad placement decisions based on their superior performance metrics. This allows the system to optimize revenue generation by directing traffic to high-performing networks while still maintaining relationships with numerous networks for diverse placement options.

Inventive Principle:
Principle #3Local quality

2Productivity

If frequency cap is increased for higher-revenue ad networks, then ad impressions and revenue increase, but ad network performance assessment complexity increases

Engineering Contradiction:
Improvead revenueVSAvoidperformance assessment system
Core Design Contradiction:
ProductivityVSDevice complexity

Solution Approach 1:

The patent changes key parameters such as fill rate, CPM (cost per mille), and response time to establish performance thresholds for tier assignment. By monitoring and adjusting these parameters, the system can dynamically assign ad networks to appropriate tiers and adjust frequency caps accordingly. This resolves the contradiction by providing a structured parameter-based approach that simplifies the assessment of numerous networks while enabling optimized frequency cap management for maximum revenue.

Inventive Principle:
Principle #35Parameter changes

Solution Approach 2:

The patent implements feedback mechanisms that continuously monitor ad network performance metrics and use this information to adjust tier assignments and frequency caps. The system collects data on fill rates, CPM, and response times, assesses network performance against established criteria, and dynamically adjusts frequency allocation. This feedback loop enables automated performance assessment that reduces complexity while maximizing revenue from high-performing networks.

Inventive Principle:
Principle #23Feedback

Data Source

PatentUS9208507B2AD network optimization system and method thereof
Publication Date: 2015.12.08 MAGNITE INC
  • US9208507B2 patent drawing
  • US9208507B2 patent drawing
  • US9208507B2 patent drawing

AI summary

A system and method for optimizing advertisements. To maximize revenue, a plurality of ad networks are tiered based on their pricing data, and in one embodiment, their cost per thousand impressions (CPM). Each tier includes a pricing data range. Periodically, the system may increase and decrease frequency caps for the ad networks to adjust the ad networks in the tiers. Frequency caps may be increased for an ad network when the CPM for the ad network is above the CPM range for the ad network's tier. The frequency caps may be decreased for the ad network when the CPM for the ad network is below the CPM range for the ad network's tier. For each ad network request received, the system traverses through the tiers of the plurality of ad networks for an ad network that is capable of serving an ad based on the ad network's frequency cap.