Dynamic Pay-Per-Performance Advertising System
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Solution Overview
Problem
Current advertising systems lack dynamic pricing mechanisms to accurately charge advertisers based on the performance of their advertisements, such as the number of connections or deals generated, leading to inefficiencies in revenue generation and customer engagement.
Innovation Solution
Implementing a system that dynamically determines the performance event of a listing based on user responses, allowing advertisers to pay a fee per predetermined event, such as a telephonic connection or deal completion, using data processing systems and computer-readable media to track and bill advertisers for measurable outcomes.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If advertisers pay for traditional web advertisements with limited information, then advertisement delivery is simple, but revenue generation is insufficient and customer engagement is low
Solution Approach 1:
The patent implements dynamic pricing for advertisements based on real-time performance metrics such as number of calls, deals closed, or other measurable outcomes. The advertising system dynamically adjusts prices and selects from multiple event types (call events, deal events, etc.) based on advertiser performance, transforming static advertising into a dynamic, results-driven model that increases revenue generation capability
Solution Approach 2:
The system changes the pricing parameter from fixed costs to variable costs based on performance events. Advertisers are charged differently based on the type and outcome of user interactions (e.g., per call initiated, per deal closed), allowing the advertising system to optimize revenue by selecting and adjusting pricing parameters according to actual performance data
2Measurement precision
If advertisers pay based on number of visits to their websites, then payment is measurable, but it does not accurately reflect actual advertising performance such as connections or deals generated
Solution Approach 1:
The patent implements feedback mechanisms that track user responses to advertisements (calls initiated, deals closed, etc.) and use this information to dynamically adjust advertising prices and select appropriate event types. The system continuously monitors performance metrics and feeds this information back into the pricing algorithm, enabling precise measurement of actual advertising performance rather than just visit counts
Solution Approach 2:
The system introduces an intermediary layer that tracks and verifies performance events between the advertiser and the advertising platform. This intermediary mechanism captures and validates events such as calls and deals, ensuring accurate measurement while managing the tracking and billing complexity through automated event verification and attribution
3Productivity
If the system dynamically determines performance events based on user responses, then revenue generation becomes more precise, but the system complexity increases
Solution Approach 1:
The patent segments the advertising performance measurement into distinct event types (call events, deal events, conversion events, etc.). Each event type is tracked and priced separately based on its value to the advertiser. This segmentation allows the system to precisely measure and price different performance outcomes while managing complexity through modular event categorization and specialized tracking for each event type
Data Source
AI summary
Methods and apparatuses to dynamically determine the performance event of a listing based on the progress levels of responses received in response to a presentation of the listing. One embodiment includes: providing a listing on behalf of an entity for presentation to a user; identifying an event from a set of predetermined events based on communications made by the user responsive to a presentation of the listing; and charging the entity a fee per the event identifying from the set of predetermined events.