Dynamic Bid Allocation for Stable Online Campaign Event Rates
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Solution Overview
Problem
Existing systems for controlling event rates in online campaigns are unstable and sensitive to perturbations, leading to volatile and inadequately controlled event rates, requiring manual tuning and resulting in inefficient allocation of budget and content delivery.
Innovation Solution
A feedback-based control system that dynamically updates bid allocations across campaign segments to ensure the campaign-level event rate meets or exceeds a minimum threshold, using a continuous mapping function to smoothly control event rates rather than binary threshold mechanisms.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Device complexity
If binary threshold mechanisms are used to control event rates, then the control system is simple to implement, but the event rates become volatile and inadequately controlled
Solution Approach 1:
The patent implements a feedback-based control system that continuously monitors event rates and dynamically adjusts bid allocations in response to deviations from target rates. This closed-loop feedback mechanism transforms the open-loop binary threshold approach into a responsive control system that maintains stability while adapting to changing conditions, directly resolving the contradiction between simplicity and stability.
Solution Approach 2:
The system transitions from static binary threshold mechanisms to dynamic continuous control by adjusting bid allocations proportionally based on the magnitude and direction of event rate deviations. This dynamic adjustment allows the system to respond smoothly to perturbations rather than switching abruptly between fixed states, thereby improving event rate control stability without significantly increasing complexity.
2Reliability
If manual tuning is performed to stabilize event rates, then event rate control improves, but the process becomes time-consuming and inefficient
Solution Approach 1:
The control system is designed to automatically monitor event rates, calculate deviations from targets, and adjust bid allocations without human intervention. This self-service capability eliminates the need for manual tuning while maintaining stable event rate control, directly addressing the contradiction between reliability and time loss by automating what was previously a manual process.
Solution Approach 2:
The continuous feedback loop automatically detects event rate deviations and triggers appropriate bid allocation adjustments without requiring manual tuning. This automated feedback mechanism replaces time-consuming manual interventions with real-time system responses, improving both reliability and efficiency simultaneously.
3Ease of operation
If bid allocations are not dynamically adjusted, then the system is simple to operate, but budget allocation and content delivery become inefficient
Solution Approach 1:
The system implements dynamic bid allocation that automatically adjusts spending across campaign segments based on real-time event rate performance. This dynamic approach optimizes budget allocation efficiency by shifting resources toward high-performing segments while maintaining simplicity through automated control, resolving the contradiction between ease of operation and productivity.
Solution Approach 2:
The system automatically changes bid allocation parameters in response to event rate deviations, enabling efficient budget allocation without requiring complex manual configuration. This parameter adjustment mechanism improves productivity while maintaining ease of operation by handling optimization calculations automatically based on predefined control rules.
Data Source
AI summary
Allocating bids for providing content within a segmented campaign is controlled to ensure that an event rate associated with the provided content meets or exceeds a threshold rate. A campaign-level event rate, associated with the provided content, is estimated and provided as a feedback signal. This feedback signal is employed to dynamically update bid allocations for each of the segments, which in turn varies the number or rate of provided impressions and events. Such feedback enables the control of the campaign-level rate and ensures that the campaign-level rate meets or exceeds the rate threshold. To control these rates, the number of total impressions, as well as the number of associated events, is temporally sampled across the campaign segments. Based on the number of impressions and events, the campaign-level event rate is estimated and employed as the feedback signal. Updating the bid allocations may be based on the Beta Distribution.