Commitment Policy Adjustor for Programmatic Advertising Bids
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Solution Overview
Problem
In programmatic advertising, it is challenging to effectively select and balance advertisements to satisfy contractual commitments between publishers and advertisers due to the high volume of bids and real-time nature of the advertising process.
Innovation Solution
An advertising exchange system that uses a commitment policy adjustor to manage and adjust bidding strategies in real-time, ensuring that contractual agreements are met by assigning advertisements to slots based on predefined commitments, tracking events, and adjusting policies to optimize bid submissions and auction results.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Speed
If real-time bidding is used to handle high volume of ads, then advertising speed is improved, but accuracy of meeting contractual commitments deteriorates
Solution Approach 1:
The system pre-calculates and pre-determines the optimal mix of bid types (open auction, preferred deal, programmatic direct, private marketplace) and pacing strategies before the bidding period begins. This preliminary planning ensures that contractual commitments are met while maintaining real-time bidding speed, as the system simply executes pre-determined strategies rather than calculating optimal mixes during real-time bidding.
2Manufacturing precision
If manual management of bid submissions is used, then accuracy of meeting commitments is improved, but productivity deteriorates
Solution Approach 1:
The system automatically monitors bid submission progress, tracks pacing, and adjusts bid strategies in real-time without human intervention. The automated system calculates optimal bid mixes, manages pacing across multiple bid types, and makes real-time adjustments to meet contractual commitments, thereby maintaining high accuracy while achieving high processing capacity that would be impossible through manual management.
3Adaptability or versatility
If diverse bid types are used to satisfy commitments, then adaptability is improved, but device complexity deteriorates
Solution Approach 1:
The system implements a unified multi-functional platform that handles all four bid types (open auction, preferred deal, programmatic direct, private marketplace) through a single automated system. This universal system manages pacing, tracking, and optimization across all bid types simultaneously, reducing the operational complexity that would arise from managing diverse bid types through separate systems while maintaining the adaptability to meet various contractual commitments.
Data Source
AI summary
Systems, methods, and computer-readable media are disclosed for optimizing a programmatic advertising system by continuously adjusting certain policies with respect to the advertising bids to manage and balance commitments made to publishers and/or advertisers. The policies may be modified to adjust an attach rate and/or a guaranteed bid rate to balance various type of advertising bids (e.g., open auction, private market place deals, preferred deals, etc.) and ensure that commitments publishers and/or advertisers are satisfied. The system may continuously track new bids and may adjust the policies in real time or near real time to achieve certain targets for submissions, impressions, and other well-known advertising metrics.