Client-Based Ad Agent for Dynamic Bid Pricing
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current online advertising systems lack flexibility in targeting specific users and adjusting bid prices dynamically, limiting their ability to effectively reach valuable end users and maximize advertising revenue.
Innovation Solution
A client-based ad agent that analyzes user data to determine whether an advertisement campaign should bid on an impression and sets the appropriate bid price, allowing for real-time decision-making and dynamic pricing based on user value, without requiring modifications to existing advertisement servers or publisher websites.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If bid price settings are fixed when advertisement campaigns are established, then the system is simple to operate, but the system lacks flexibility in dynamically adjusting bids for specific users
Solution Approach 1:
The patent introduces an ad agent as an intermediary component that sits between the advertiser's campaign settings and the advertising delivery system. This ad agent dynamically adjusts bid prices for specific users based on user characteristics and campaign criteria, without requiring modifications to the core advertising delivery system. The ad agent translates fixed campaign settings into dynamic bid decisions, resolving the contradiction between flexibility and system complexity.
Solution Approach 2:
The patent segments the bidding process into two distinct layers: (1) fixed campaign-level settings established by advertisers, and (2) dynamic user-level bid adjustments performed by the ad agent. This segmentation allows the system to maintain simple fixed settings while achieving dynamic flexibility through the ad agent's user-specific bid modifications.
2Measurement precision
If advertisement campaigns target specific types of users, then targeting precision is improved, but the ability to dynamically add and remove specific users is limited
Solution Approach 1:
The patent transforms static user targeting into a dynamic process by enabling the ad agent to evaluate user characteristics in real-time and adjust bid prices accordingly. The system can dynamically add or remove specific users from campaign targeting by modifying bid prices at the user level, allowing advertisers to respond to changing user behavior and campaign performance without reconfiguring entire campaign settings.
Solution Approach 2:
The patent changes the bid price parameter dynamically based on user characteristics and campaign performance. Instead of fixing user targeting lists, the system adjusts the bid price parameter for each user individually, allowing flexible inclusion or exclusion of users by simply changing their bid price to zero or adjusting it based on real-time evaluation of user value.
3Productivity
If fixed bid prices are used for all users, then the system is easy to manage, but the system cannot optimize advertising spend based on individual user value
Solution Approach 1:
The patent implements a self-service mechanism where the ad agent automatically evaluates user characteristics and adjusts bid prices without requiring manual intervention from advertisers. The system autonomously optimizes advertising spend by identifying high-value users and increasing bids for them while reducing or eliminating bids for lower-value users, maintaining ease of operation while achieving revenue optimization.
Solution Approach 2:
The patent incorporates feedback loops where the ad agent continuously monitors user interactions with advertisements and campaign performance metrics. This feedback information is used to dynamically adjust bid prices for individual users, allowing the system to optimize advertising revenue based on real-time performance data while maintaining simple fixed campaign settings.
Data Source
AI summary
A client-based ad agent dynamically determines whether an advertisement campaign should bid on an impression for an end user and/or sets the bid price of the advertisement campaign for the impression. When an opportunity for an impression on a web page is identified, the ad agent accesses user data associated with an end user. The ad agent analyzes the user data to identify the relevance and/or value of serving an impression to the end user to the advertisement campaign. Based on the analysis, the ad agent controls whether the advertisement campaign bids on the impression for the end user and/or sets the bid price of the advertisement campaign for the impression.