Keyword Arbitrage System for Ad Placement Providers

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Solution Overview

Problem

There is a lack of mechanisms for searching and managing various types of digital content for embedded advertisements to identify and track keyword usage, guide keyword purchases, and control traffic flow effectively across different advertisement platforms.

Innovation Solution

A system and method that employs a search engine to identify advertisement keywords within diverse content types, rank their similarity, and guide keyword purchases to capitalize on price differentials between sellers and buyers, utilizing a network of devices and databases to manage keyword arbitrage and traffic flow.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Measurement precision

If a search engine is used to identify advertisement keywords within diverse content types, then the ability to identify and track keyword usage is improved, but the complexity of the system increases

Engineering Contradiction:
Improvekeyword identification accuracyVSAvoidsystem complexity
Core Design Contradiction:
Measurement precisionVSDevice complexity

Solution Approach 1:

The system is divided into separate functional modules: a search engine component for identifying keywords, a ranking component for scoring keyword similarity, and an arbitrage detection component for identifying pricing opportunities. Each module performs a specific function, making the overall system more manageable despite its complexity.

Inventive Principle:
Principle #1Segmentation

Solution Approach 2:

The patent introduces an intermediate processing layer that receives diverse content types, extracts keywords, ranks them by similarity, and feeds them to the arbitrage detection system. This intermediary structure handles the complexity of processing multiple content types while maintaining clean interfaces between components.

Inventive Principle:
Principle #24Intermediary (Mediator)

2Measurement precision

If keyword similarity ranking is implemented to guide keyword purchases, then the precision of keyword selection is improved, but the computational resources and time required increase

Engineering Contradiction:
Improvekeyword similarity measurementVSAvoidprocessing time
Core Design Contradiction:
Measurement precisionVSLoss of time

Solution Approach 1:

The system implements keyword similarity ranking that focuses on the most relevant features and top-ranked keywords rather than exhaustively analyzing all possible keyword attributes. This partial action approach achieves sufficient precision for arbitrage detection without requiring complete analysis of all keywords.

Inventive Principle:
Principle #16Partial or excessive action

Solution Approach 2:

The patent employs adjustable similarity scoring parameters that can be tuned to balance precision and processing speed. By changing the weighting parameters in the similarity calculation, the system can optimize for either higher precision or faster processing depending on operational requirements.

Inventive Principle:
Principle #35Parameter changes

3Productivity

If multiple advertisement placement providers are monitored for arbitrage opportunities, then the profitability of keyword purchases is improved, but the complexity of managing multiple providers increases

Engineering Contradiction:
Improvearbitrage opportunity identificationVSAvoidmulti-provider management complexity
Core Design Contradiction:
ProductivityVSDevice complexity

Solution Approach 1:

The system is designed to work with multiple advertisement placement providers through a universal interface that abstracts the specific details of each provider. The core arbitrage detection logic remains the same regardless of which providers are monitored, allowing the system to manage multiple providers without proportionally increasing complexity.

Inventive Principle:
Principle #6Universality (Multi-functionality)

Solution Approach 2:

The system continuously monitors pricing data from multiple providers and uses feedback loops to identify arbitrage opportunities where the same keyword is priced differently across providers. This feedback mechanism automatically adjusts keyword purchase decisions based on real-time pricing information from all monitored providers.

Inventive Principle:
Principle #23Feedback

Data Source

PatentUS8473338B2Methods and systems to facilitate keyword bid arbitrage with multiple advertisement placement providers
Publication Date: 2013.06.25 LEAF GROUP LTD
  • US8473338B2 patent drawing
  • US8473338B2 patent drawing
  • US8473338B2 patent drawing

AI summary

A system and method are directed towards identifying advertisement keywords within a variety of content types, identifying similarity rankings of advertisements based on the keywords, and to the guiding of keyword purchases. In one embodiment, a search is performed based in part on defined selection criteria, and/or scheduling rules. Content that may include advertisements is processed to identify advertisement keywords. A similarity ranking of different advertisements based on keywords therein may be determined. The similarity rankings may be used, with keyword pricing data, to identify instances of keyword arbitrage, guide purchase of keywords, and to control traffic flow to and from advertisements to obtain a benefit from price differentials between what one keyword seller charges for a keyword and what a click buyer will, pay for traffic directed to advertisements with the same or related keyword. In one embodiment, a three-dimensional representation is provided indicating relationships between advertisements across websites.