Dynamic Bid Management for Real-Time Search Advertising
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Solution Overview
Problem
Advertiers face challenges in effectively bidding on online advertising opportunities due to high overhead, limited ability to anticipate search terms, poor differentiation between individual queries, and inefficiencies in managing bids for varying search conditions.
Innovation Solution
A software facility that allows search engines to send dynamic bid invitations to advertisers based on search queries, enabling them to submit customized bids and messages in real-time, with features like caching bids, user profiling, and criteria-based notifications to optimize ad relevance and reduce overhead.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If advertisers use prospective advertising bids to bid on search result advertising opportunities, then they can participate in advertising auctions, but the overhead of managing bids becomes too high and limits the number of search terms they can effectively bid on
Solution Approach 1:
The system enables self-service automated bid management where the advertising bid management system automatically receives search term notifications, determines relevance to advertised items, and submits bids without requiring manual advertiser intervention for each search term. This resolves the contradiction by eliminating the manual overhead while maintaining comprehensive bid coverage across numerous search terms.
Solution Approach 2:
The patent introduces an intermediary advertising bid management system that acts as a mediator between the search engine and advertisers. This intermediary automatically processes search term notifications, evaluates relevance against advertised items, and submits bids on behalf of advertisers. This resolves the contradiction by handling the complex bid management tasks automatically, allowing advertisers to participate in numerous advertising opportunities without proportional increases in management overhead.
2Reliability
If advertisers manually select and optimize search terms for prospective advertising bids, then they can target relevant advertising opportunities, but it takes a substantial period of time to respond to unexpected search terms like news stories or new product announcements
Solution Approach 1:
The system performs preliminary actions by pre-configuring advertised items and their relevant categories in the advertising bid management system before search terms arise. When search term notifications are received, the system immediately checks them against the pre-configured advertised items and submits bids without requiring manual analysis or configuration time. This resolves the contradiction by having all bid parameters prepared in advance, enabling instant response to any search term including unexpected ones like news stories or new product announcements.
3Measurement precision
If prospective advertising bids are used to differentiate between individual advertising opportunities, then some differentiation is possible, but they do a poor job of distinguishing between good and poor prospects across various query dimensions
Solution Approach 1:
The system implements feedback mechanisms by receiving search term notifications that include contextual information about the search query, user profile, and search conditions. The advertising bid management system uses this feedback to dynamically determine bid amounts and advertising messages tailored to each specific opportunity. This resolves the contradiction by using real-time feedback from the search engine to accurately differentiate between advertising opportunities based on multiple query dimensions, enabling precise targeting without requiring complex manual analysis.
Data Source
AI summary
A facility for bidding on a pending advertising opportunity is described. The facility receives at an advertiser a notification from a publisher. The notification contains keywords relating to a content request received by the publisher, and is sent by the publisher between its receipt of the content request and its dispatch of a content response responsive to the content request. In response to receiving the notification, the facility sends to the publisher a dynamic bid. The dynamic bid specifies an advertising message and a bid amount that the advertiser is willing to pay to present the advertising message in connection with a content response responsive to the content request produced by the publisher.