Keyword Advertising Ranking via Bid Price and Click-Through Rate
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Solution Overview
Problem
Current keyword advertising systems prioritize advertisers with higher bid prices, leading to uneven exposure and potential overcharging, neglecting long-term contracts and click-through rates, which can result in suboptimal advertising effectiveness and profitability for both advertisers and searchers.
Innovation Solution
A keyword advertising system that selects and ranks search listings based on bid price and click-through rate (CTR), while also considering advertising period, to provide more balanced and relevant search results, ensuring better visibility for high-bid and long-term contracts, and charging advertisers reasonably per click.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Quantity of substance
If search listings are ranked solely by bid price, then advertisers with higher bid prices receive preferential exposure, but advertising costs become excessive and long-term contracts are undervalued
Solution Approach 1:
The patent transforms the single-parameter bid price ranking into a multi-parameter ranking system that incorporates bid price, advertising period, and click-through rate. This parameter expansion allows the system to balance immediate bid competitiveness with long-term contract value and actual user engagement, resolving the contradiction between exposure quantity and cost efficiency.
Solution Approach 2:
The patent introduces dynamic ranking adjustments based on click-through rate feedback. The system continuously monitors user interaction with search listings and adjusts rankings in real-time, allowing high-CTR listings to rise regardless of bid price. This dynamic mechanism ensures that advertising effectiveness, not just bid magnitude, drives exposure, thereby reducing wasted spend on low-performing ads.
2Reliability
If only bid price is considered for selection, then high-bid advertisers are prioritized, but long-term advertising contracts are not adequately reflected
Solution Approach 1:
The patent applies preliminary weighting to advertising period length before final ranking. Long-term contracts receive a time-based multiplier or priority boost in the selection process, ensuring that advertisers committed to extended periods are recognized and rewarded. This preliminary consideration prevents short-term bid spikes from completely overshadowing valuable long-term partnerships.
Solution Approach 2:
The patent creates a composite evaluation metric that combines bid price, advertising period, and historical performance data into a unified ranking score. This composite approach integrates multiple dimensions of advertiser value, allowing the system to simultaneously recognize high bids, long-term commitments, and proven effectiveness, thereby improving selection accuracy without sacrificing contract duration considerations.
3Device complexity
If the same criterion is used for both selection and ordering of search listings, then the process is simple, but balance between advertiser and searcher profits is difficult to achieve
Solution Approach 1:
The patent segments the ranking process into distinct stages: initial selection based on bid price and advertising period, followed by secondary ordering based on click-through rate and user engagement metrics. This segmentation allows each stage to optimize for different objectives—selection focuses on advertiser commitment and budget, while ordering focuses on user relevance and experience—thereby achieving balance without excessive overall complexity.
Solution Approach 2:
The patent implements feedback loops where click-through rate data from user interactions is fed back into the ranking system to continuously refine search listing ordering. This feedback mechanism ensures that the system learns from actual user behavior and adjusts rankings to better match user intentions, improving user experience quality while maintaining a relatively simple and transparent ranking process.
Data Source
AI summary
Provided is a keyword advertising system extracting search listings in response to a search request, the system comprising: an interface receiving bid price information corresponding to a keyword from an advertiser; a search information database storing search listings associated with the advertisers in association with each of the received bid price information; a ranking module generating a search result list by referring to the search information database, in response to a search request from a searcher; and a search results providing module providing the searcher with the generated search result list; wherein the ranking module generates the search result list by performing the steps of: identifying a keyword received from the searcher in association with the search request; selecting N of search listings from the at least one search result listing corresponding to the identified keyword, based on the bid price information; and ordering the selected search listings in order of click through rate.