Dynamic Ad Bid Adjustment via Merchant Availability
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Solution Overview
Problem
Advertisers face challenges in optimizing their bids for electronic advertising spaces due to the lack of real-time adjustments based on merchant system availability, leading to inefficient resource allocation and reduced advertising effectiveness.
Innovation Solution
A computer-implemented method that adjusts bids for electronic advertising spaces by continuously monitoring merchant system availability through a reservation calendar, allowing for dynamic bidding adjustments based on changing availability and marketing preferences, thereby optimizing ad placement and resource allocation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If advertisers use static bids for advertising spaces, then bidding process is simple, but advertising effectiveness is reduced due to lack of real-time adjustments based on merchant availability
Solution Approach 1:
The patent implements dynamic bidding by continuously adjusting bid amounts based on real-time merchant system availability data from reservation calendars. The bidding system transitions from static to dynamic, automatically modifying bids as availability changes, thereby improving advertising effectiveness without requiring manual intervention.
Solution Approach 2:
The system establishes a feedback loop where bid decisions are continuously informed by real-time availability data from merchant reservation calendars. This feedback mechanism allows the bidding system to adapt to changing merchant capacity, optimizing ad placement effectiveness while maintaining automated operation.
2Productivity
If advertisers bid without considering merchant availability, then resource allocation is simple, but advertising spend is inefficient and unnecessary
Solution Approach 1:
The system performs preliminary assessment of merchant availability through reservation calendar data before placing bids. By checking availability in advance and adjusting bids accordingly, the system prevents unnecessary advertising spend on unavailable capacity while optimizing resource allocation to high-probability conversion opportunities.
Solution Approach 2:
The bidding system dynamically changes bid parameters based on merchant availability metrics. When availability is high, bids are increased to capture conversion opportunities; when availability is low, bids are reduced or withdrawn, thereby optimizing advertising resource allocation and eliminating wasteful spend.
3Productivity
If real-time bid adjustments are implemented, then advertising effectiveness is improved, but system complexity increases
Solution Approach 1:
The bidding system operates autonomously by automatically retrieving availability data from merchant reservation calendars and adjusting bids without human intervention. This self-service capability implements real-time optimization while keeping the system manageable through automation rather than manual complexity.
Solution Approach 2:
The system integrates multiple functions into a unified bidding platform: retrieving availability data, analyzing conversion probability, calculating optimal bid amounts, and executing bids. This multi-functional integration improves conversion rates while managing complexity through consolidation rather than separate systems.
Data Source
AI summary
An advertising system receives, from a merchant system, marketing information, bidding preferences for auctions for advertising spaces, and a merchant system reservation calendar comprising an availability for the merchant system. The advertising system receives a notice of an auction for an advertising space from an advertising platform. The advertising system determines a first bid for the auction based on the availability of the merchant system, the marketing information, and the merchant system's bidding preferences and transmits the first bid to the advertising platform. The advertising system receives a notice of an incomplete auction from the advertising platform. The advertising system receives, from the merchant system, an updated merchant system reservation calendar comprising an updated availability and determines a second bid for the advertising space auction. The advertising system transmits the second bid to the advertising platform. The advertising system receives a notice of a completed auction from the advertising platform.