Automated Bidding Using Pre-calculated Guidelines
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Solution Overview
Problem
Real-time bidding in online content advertising faces challenges due to the limitations of using cookies, which can be spoofed, ephemeral, and complex to analyze, leading to latency issues that put bidder processes at a competitive disadvantage.
Innovation Solution
Implementing a system where bidder processes use 'bidding guidelines' based on IP addresses and pre-calculated data, such as demand slope and historical consumption statistics, to quickly determine and submit bids, reducing the reliance on cookies and minimizing latency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If bidder processes use cookies to determine bids, then user behavior analysis can be performed, but latency increases and competitive advantage is lost
Solution Approach 1:
The system pre-calculates and stores bidding guidelines including demand slope data and historical consumption statistics in volatile memory before auctions begin. This preliminary preparation eliminates the need for real-time cookie analysis during the auction, reducing latency while maintaining accurate user behavior analysis through pre-processed data.
2Adaptability or versatility
If bidder processes analyze cookies in real-time, then bid calculations can be personalized, but system complexity and processing time increase
Solution Approach 1:
The system performs complex cookie analysis and generates personalized bidding guidelines in advance, storing results in volatile memory. During auctions, bidder processes simply retrieve pre-computed guidelines rather than performing complex real-time analysis, maintaining bid personalization while dramatically simplifying the auction-time system complexity.
Solution Approach 2:
The system introduces an intermediary layer (bidding guidelines stored in volatile memory) between the cookie data and the bid calculation process. This intermediary pre-processes and structures the data, allowing simple retrieval during auctions rather than complex real-time processing.
3Speed
If bidder processes use IP addresses instead of cookies, then bidding speed increases, but user behavior tracking stability improves
Solution Approach 1:
The system pre-calculates bidding guidelines using IP addresses and stores them in volatile memory before auctions. This approach leverages the stability of IP addresses as identifiers while performing all complex analysis in advance, enabling both fast retrieval during auctions and accurate user behavior tracking through pre-processed data.
Data Source
AI summary
Systems, methods, and computer-readable media (transitory and non-transitory) are provided herein for automated bidding on auctioned online content. In various embodiments, a bidder process operating on a bidder management computing system may determine an IP address associated with an impression to be populated with consumable content. The impression may be solicited by a content auction computing system. The bidder process may retrieve, e.g., from volatile memory local to the bidder process management computing system, bidding guidelines associated with the IP address. The bidder process may determine, based on the retrieved bidding guidelines, a bid for a particular consumable content item to populate the solicited impression. The bidder process may then submit the bid to the content auction computing system.