Dynamic Pricing Engine for Wireless Ad Revenue Optimization

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Solution Overview

Problem

E-commerce sites face challenges in determining the value of Internet advertisements and their impact on customer procurement and product profitability due to inadequate measurement criteria and the difficulty in tracking consumer behavior, leading to inefficient pricing strategies.

Innovation Solution

A virtual or physical e-commerce application with an interface that calculates net margin and dynamically adjusts bid/cost or product pricing based on real-time advertising costs, consumer behavior, and various parameters such as location, shipping costs, and advertising expenses, integrating dynamic pricing and procurement support.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Ease of operation

If standard e-commerce transaction techniques are used, then customers can access pricing and product information, but the ability to draw customers in and capture them while they are not sure where to look is insufficient

Engineering Contradiction:
Improvecustomer acquisitionVSAvoidcustomer capture efficiency
Core Design Contradiction:
Ease of operationVSProductivity

Solution Approach 1:

The patent introduces search engines as intermediary systems between customers and e-commerce sites. These search engines analyze customer search queries and return targeted lists of relevant e-commerce sites, acting as a mediator that connects customers who are unsure where to look with the appropriate shopping destinations. This resolves the contradiction by enhancing customer capture efficiency through the intermediary's ability to match customer needs with relevant sites.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent implements feedback mechanisms where e-commerce sites provide information about their products, pricing, and customer service quality to search engines. The search engines then use this feedback to refine their search results and provide more accurate recommendations to customers. This feedback loop improves customer acquisition by ensuring that customers are directed to sites that best meet their needs.

Inventive Principle:
Principle #23Feedback

2Loss of information

If multiple screens are opened for comparison shopping, then consumers have access to broader information, but processing times for Internet graphics and data become a constraint

Engineering Contradiction:
Improveinformation accessibilityVSAvoidprocessing time
Core Design Contradiction:
Loss of informationVSLoss of time

Solution Approach 1:

The patent segments the information retrieval process by having the search engine divide and conquer the task of finding relevant e-commerce sites. Instead of requiring customers to manually open multiple screens to compare information, the search engine segments the search space into manageable results based on customer queries, pre-processing and organizing information before presentation to the customer.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The search engine performs preliminary actions by pre-analyzing customer search queries and pre-compiling lists of relevant e-commerce sites before the customer even begins their shopping journey. This preliminary processing reduces the time customers would otherwise spend opening multiple screens and manually comparing information, as the relevant sites are already identified and presented in an organized manner.

Inventive Principle:
Principle #10Preliminary action

3Device complexity

If inadequate measurement criteria are used for advertising value, then advertising placement is simplified, but the ability to determine impact on customer procurement and product profitability is insufficient

Engineering Contradiction:
Improveadvertising measurement systemVSAvoidadvertising effectiveness measurement
Core Design Contradiction:
Device complexityVSMeasurement precision

Solution Approach 1:

The patent implements comprehensive feedback mechanisms that track customer behavior across multiple screens and e-commerce sites. By monitoring what customers view, click on, and ultimately purchase, the system gathers detailed feedback data about advertising effectiveness. This feedback is then used to precisely measure the impact of advertisements on customer procurement and product profitability, resolving the contradiction between system complexity and measurement precision.

Inventive Principle:
Principle #23Feedback

Solution Approach 2:

The patent replaces traditional mechanical measurement methods (such as simple impression counting) with advanced analytical systems that use data mining, statistical analysis, and behavioral tracking. These computational methods substitute for simpler mechanical counting systems, enabling precise measurement of advertising effectiveness by analyzing complex patterns in customer behavior data rather than relying on basic exposure metrics.

Inventive Principle:
Principle #28Mechanics substitution (Replace mechanical system)

4Productivity

If dynamic pricing and procurement support is integrated, then real-time decision-making is enabled, but the complexity of calculating net margin and adjusting bid/cost increases

Engineering Contradiction:
Improvedecision-making speedVSAvoidpricing calculation system
Core Design Contradiction:
ProductivityVSDevice complexity

Solution Approach 1:

The patent merges multiple functions into an integrated pricing and procurement support system. Instead of having separate systems for calculating net margin, adjusting bid/cost, and making procurement decisions, the patent combines these functions into a unified system that processes all calculations and decisions in real-time. This integration resolves the contradiction by enabling fast decision-making through consolidated processing, even though the system complexity increases.

Inventive Principle:
Principle #5Merging (Combining)

Solution Approach 2:

The patent implements dynamic pricing and procurement adjustments that automatically adapt to changing market conditions, customer behavior, and advertising costs in real-time. The system continuously updates net margin calculations and bid/cost adjustments based on current data, making the pricing system dynamic rather than static. This dynamic approach enables rapid decision-making by automatically responding to changing conditions without requiring manual intervention, despite the increased computational complexity.

Inventive Principle:
Principle #15Dynamics

Data Source

PatentUS10938584B2Advertising revenue system for wireless telecommunications providers using the sharing of display space of wireless devices
Publication Date: 2021.03.02 DRESDEN SCOTT
  • US10938584B2 patent drawing
  • US10938584B2 patent drawing
  • US10938584B2 patent drawing

AI summary

The present invention assists the critical real-time decision making required to make important decision on bidding on various customer procurement commodities in a wireless display advertising markets. The invention provides dynamic pricing as a function of the criteria of the wireless advertising criteria, such as exposures, type of advertisers and geography. In a preferred embodiment, the present invention is a virtual or physical e-commerce application with an interface connected to the wireless advertisement procurement vendors (either the advertising vendor or the wireless telecommunication vendor). A pool of bidders can analyze any tracking data for effective placement in the wireless advertising spaces, such as cell phones, PDAs, or laptops connected to a public or private WAN, based on a number of factors.