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
Engineering 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
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.
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.
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
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.
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.
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
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.
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.
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
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.
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.
Data Source
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.


