On-device auction budget controller for privacy-preserving ad targeting

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Solution Overview

Problem

Existing targeted advertising techniques face challenges in balancing user privacy with effective ad targeting, as they rely on collecting personal data, which is restricted by regulations like GDPR, and may lead to compromised privacy and weaker ad targeting.

Innovation Solution

The implementation of a system that conducts on-device advertising auctions within a privacy-preserving environment, using a trusted server to manage real-time data and ensure that ad budgets are controlled and paced to meet target configurations while preventing over-spending.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If personal data is collected and leveraged for targeted advertising, then ad targeting effectiveness is improved, but user privacy is compromised

Engineering Contradiction:
Improvead targeting effectivenessVSAvoiduser privacy compromise
Core Design Contradiction:
ProductivityVSObject-affected harmful factors

Solution Approach 1:

The patent introduces an intermediary system that enables targeted advertising without direct access to personal data. The system uses encrypted user profiles and secure multi-party computation to allow advertisers to target users based on demographics and interests while keeping personal data isolated on user devices or in secure enclaves, thus resolving the contradiction between targeting effectiveness and privacy protection

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent replaces the traditional mechanical data collection and processing system with a cryptographic system. Instead of centrally collecting and analyzing personal data, the system uses encrypted computations, secure enclaves, and privacy-preserving protocols to enable targeting decisions without exposing raw personal data, thereby maintaining both effectiveness and privacy

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

2Object-affected harmful factors

If personal data collection is restricted by privacy regulations, then user privacy is protected, but ad targeting effectiveness deteriorates

Engineering Contradiction:
Improveuser privacy protectionVSAvoidad targeting effectiveness
Core Design Contradiction:
Object-affected harmful factorsVSProductivity

Solution Approach 1:

The patent changes the parameters of data representation and processing. Instead of using raw personal data, the system transforms data into encrypted formats, aggregated statistics, and derived features that retain targeting utility while complying with privacy regulations. The system uses differential privacy, k-anonymity, and other parameter transformations to maintain effectiveness under regulatory constraints

Inventive Principle:
Principle #35Parameter changes

Solution Approach 2:

The patent segments the advertising system into separate functional components: data collection, data processing, and ad delivery. Personal data is segmented and kept in isolated secure enclaves or federated learning environments, while only aggregated insights and encrypted signals are shared with advertising systems, enabling compliance while maintaining targeting capability

Inventive Principle:
Principle #1Segmentation

3Productivity

If advertising platforms collect meaningful personal data, then targeted advertising performance is improved, but compliance with privacy regulations becomes difficult

Engineering Contradiction:
Improvetargeted advertising performanceVSAvoidregulatory compliance
Core Design Contradiction:
ProductivityVSReliability

Solution Approach 1:

The patent introduces privacy-preserving intermediaries such as trusted execution environments, secure enclaves, and federated learning servers that act as mediators between data sources and advertising systems. These intermediaries enable performance improvement through better targeting while ensuring regulatory compliance by design, as they process data in a privacy-preserving manner and provide audit trails for compliance verification

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent implements feedback mechanisms that monitor both advertising performance and compliance metrics in real-time. The system provides feedback loops that adjust targeting strategies to maintain effectiveness while staying within regulatory boundaries, and offers transparency reports and audit capabilities to demonstrate compliance to regulators

Inventive Principle:
Principle #23Feedback

Data Source

PatentUS12243073B1On-device auction budget delivery controller
Publication Date: 2025.03.04 AMAZON TECH INC
  • US12243073B1 patent drawing
  • US12243073B1 patent drawing
  • US12243073B1 patent drawing

AI summary

A system can be configured to provide an advertiser budget control system designed to work within the confines of a privacy preserving content delivery environment intended to reduce or eliminate third-party cookies. This system uses a control system, a PID controller and duty cycle, to control budget delivery to place content within a browser. The control system can be used to stably deliver budget with real-time delivery rate updates while also preventing over-spending of budget.