Dwell Time Based Advertising Pricing Model
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Solution Overview
Problem
Conventional online advertising pricing models, such as CPM-based models, fail to accurately reflect user engagement and market value, leading to unfair contract negotiations and inefficient ad placement, as they do not account for dwell time, a critical measure of user interaction.
Innovation Solution
Implementing a dwell-time based pricing model for both guaranteed delivery (GD) and non-guaranteed delivery (NGD) display advertising contracts, where advertisers pay for total user time spent on page impressions, and using Cost Per Time Unit (CPTU) for NGD contracts, to ensure fair and effective pricing by leveraging user engagement metrics.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If CPM-based pricing models are used for online advertising, then advertising revenue can be generated through impression counting, but the pricing fails to accurately reflect user engagement and market value
Solution Approach 1:
The patent changes the pricing parameter from simple impression counting (CPM) to dwell time measurement (CPTU). By measuring the actual time users spend viewing advertisements and converting this temporal parameter into pricing units, the system achieves precise measurement of user engagement while maintaining a relatively simple pricing structure based on time units.
2Measurement precision
If dwell time measurement is implemented to improve pricing accuracy, then market value reflection improves, but contract negotiation complexity increases
Solution Approach 1:
The patent introduces a standardized conversion parameter (eCPTU - expected cost per time unit) that translates various advertising metrics into a common temporal framework. This allows complex market value reflections to be negotiated through a unified parameter system, reducing negotiation complexity while maintaining precision.
Solution Approach 2:
The eCPTU metric serves as an intermediary that bridges the gap between complex dwell time measurements and simplified pricing agreements. By using this intermediate metric, the system can accurately reflect market value through standardized time-based units that facilitate easier contract negotiations.
3Productivity
If advertisement selection is based on eCPTU metrics, then ad placement efficiency improves, but calculation complexity increases
Solution Approach 1:
The patent converts diverse advertising performance metrics into a standardized eCPTU parameter, enabling direct comparison and selection of advertisements based on a single efficiency metric. This parameter unification simplifies the ad placement decision process while maintaining high calculation precision through consistent time-based measurements.
Data Source
AI summary
A method for online advertising, is provided, including: receiving a request for a web page from a client device; in response to the request, selecting an advertisement for presentation on the web page, and transmitting the web page to the client device; determining a duration of exposure of the advertisement when the web page is presented on the client device; determining a level of performance of a guaranteed presentation amount associated with the advertisement, the level of performance based on the duration of exposure of the advertisement. In another embodiment, a plurality of candidate advertisements are identified for presentation on a requested web page; for each candidate, an expected cost per time unit (eCPTU) of exposure is determined; one candidate advertisement is selected for presentation on the web page based on the eCPTU's; the web page is transmitted to a client device.