Dynamic Meta-Search Proxy Bidding for Profitable Auction Participation
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Solution Overview
Problem
Metasearch systems lack technology to optimize revenue and profitability by managing participation in meta-auctions based on run-time factors, leading to inefficient bidding strategies that do not account for varying profit margins and conversion rates across different service durations.
Innovation Solution
An affiliate system uses run-time information and pre-computed values to determine profitability and likelihood of conversion, adjusting bids dynamically to participate in metasearch auctions effectively, considering factors like length of stay, property margin, and advance purchase window.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If metasearch systems use fixed bid prices for all service durations, then bidding simplicity is maintained, but revenue optimization is lost due to inability to account for varying profit margins across different service durations
Solution Approach 1:
The patent implements dynamic bid pricing where the bid price varies based on service duration. The system calculates different bid prices for different length of stay values, transforming the static fixed-price bidding into a dynamic multi-price strategy that adapts to specific service duration requirements, thereby optimizing revenue while maintaining manageable complexity through automated calculations
Solution Approach 2:
The system changes the bid price parameter based on the length of stay parameter. By establishing a relationship between service duration and bid price, the system automatically adjusts bidding parameters to reflect varying profit margins, enabling revenue optimization without requiring manual intervention for each service duration scenario
2Quantity of substance
If metasearch systems participate in all meta-auctions, then traffic exposure is maximized, but profitability decreases due to participation in low-value auctions with poor conversion rates
Solution Approach 1:
The patent applies local quality by treating different meta-auctions with different participation strategies based on their specific characteristics. Instead of uniform participation, the system evaluates each auction's conversion rate and traffic value locally, selecting only those auctions that meet profitability thresholds, thereby optimizing the quality of traffic exposure rather than maximizing quantity alone
Solution Approach 2:
The system engages in partial action by participating in only a subset of meta-auctions rather than all available auctions. By applying conversion rate thresholds and profitability filters, the system selectively participates in high-value auctions, achieving sufficient traffic exposure through targeted participation rather than exhaustive engagement
3Ease of operation
If bid prices are set without considering conversion rates, then bidding process is simplified, but economic viability is compromised as the system cannot distinguish between high and low value conversions
Solution Approach 1:
The patent implements preliminary action by pre-calculating bid prices based on expected conversion rates before participating in meta-auctions. The system establishes bid pricing strategies in advance that incorporate conversion rate projections, allowing automated economic viability assessments without adding complexity to the actual bidding execution, thereby maintaining operational simplicity while ensuring economic soundness
Data Source
AI summary
Various methods are provided for programmatically providing a platform for responding dynamically providing a response to a property level availability call through API request based on run-time information. One example method may comprise receiving the property level availability call, the property level availability call configured to elicit a response identifying an availability of one or more of the plurality of specified properties for a specified time frame, determining, based on an associated bid, whether an affirmative response to the property level availability call is profitable, and in an instance in which the affirmative response is profitable, causing transmission of the affirmative response.