Bid Efficiency Module for Automated PPC Multiplier Adjustment
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Solution Overview
Problem
Pay-per-click (PPC) third-party content providers face inefficiencies in bidding due to manual analysis of performance data, leading to inappropriate bids and increased costs, as they struggle to optimize bids in real-time based on parameters like geographic region, time of day, and device type.
Innovation Solution
A computer-implemented method and system that uses a bid efficiency improvement module to analyze historical performance data, calculate bid multipliers for discrete states such as geographic regions, times of day, and device types, and automatically adjust bids to improve efficiency and profitability.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If manual analysis of performance data is used to determine bid values, then bid accuracy can be improved, but time consumption increases and real-time optimization is lost
Solution Approach 1:
The patent replaces the manual mechanical analysis process with an automated computer-implemented system. The bid efficiency improvement module automatically retrieves performance data, calculates bid multipliers, and adjusts bids without human intervention, eliminating time consumption while maintaining or improving bid accuracy through systematic data processing.
Solution Approach 2:
The system enables self-service by allowing the bid optimization process to operate autonomously. The bid efficiency improvement module continuously monitors performance data and automatically adjusts bid multipliers based on calculated metrics, freeing content providers from manual analysis while maintaining optimal bid accuracy through automated feedback loops.
2Productivity
If bid multipliers are calculated based on multiple parameters (geographic region, time of day, device type), then bid efficiency is improved, but system complexity increases
Solution Approach 1:
The patent segments the bid optimization process into distinct parameter categories (geographic region, time of day, device type). Each parameter is processed independently to calculate specific bid multipliers, which are then combined to determine final bid adjustments. This segmentation manages complexity by breaking down the multifaceted optimization problem into manageable, independent components.
Solution Approach 2:
The bid efficiency improvement module serves multiple functions within a single system: retrieving performance data, analyzing multiple parameter types, calculating various bid multipliers, and adjusting bids across different dimensions. This multi-functionality consolidates complexity into a unified system rather than requiring separate mechanisms for each optimization aspect.
3Loss of time
If automated bid optimization is implemented, then time and effort for manual analysis is reduced, but system complexity and implementation difficulty increase
Solution Approach 1:
The patent introduces a bid efficiency improvement module as an intermediary between performance data and bid placement. This module acts as a mediator that automatically processes performance data, calculates appropriate bid multipliers, and communicates adjustments to the bidding system, eliminating manual analysis while providing a clear, structured interface that manages implementation complexity.
Solution Approach 2:
The system implements continuous feedback loops where performance data is retrieved, analyzed, and used to calculate bid multipliers that are then applied to subsequent bids. The results are monitored and fed back into the system for further optimization. This automated feedback mechanism reduces manual analysis time while providing a systematic framework that manages implementation complexity through established feedback principles.
Data Source
AI summary
Systems and methods for improving a content provider's bid efficiency in an auction are disclosed. A bid efficiency improvement module of a data processing system identifies a keyword on which a third-party content provider has placed a bid to serve at least one third-party content item. The module retrieves third-party content performance data for the identified keyword. The module determines that the third-party content performance data is sufficient to calculate one or more bid multipliers for the identified keyword. The bid multipliers are calculated based on the retrieved third-party content performance data. The bid multipliers are based on one of a geographic region in which the third-party content item is to be served, a time-of-day at which the third-party content item is to be served, or a type-of-device on which the third-party content item is to be served. The calculated bid multipliers are stored in a memory.