Automated Seller Engine for Dynamic Advertising Budget Allocation

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Solution Overview

Problem

In the field of web-based e-commerce, sellers face challenges in optimizing their business objectives, such as profit, revenue, and inventory management, due to the complexity of dynamic market conditions, numerous advertising channels, and the need for real-time decision-making, which existing technologies fail to address effectively.

Innovation Solution

The development of an automated real-time system, known as the Automated Real-Time Iterative System For On-Demand Transactions (ARTIST), which includes a seller automated engine (SAEJ) that optimizes pricing strategies, allocates advertising budgets, and dynamically adjusts advertising across various media channels to meet business targets, using real-time market data and business objectives.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If sellers manually optimize pricing and advertising allocation, then business objectives can be optimized, but time consumption and operational complexity increase significantly

Engineering Contradiction:

Improveoptimization speedVSAvoiddecision-making time

Core Design Contradiction:

ProductivityVSLoss of time

Solution Approach 1:

The seller automated engine performs self-optimization by automatically adjusting pricing and advertising allocation based on real-time market conditions and business objectives, eliminating the need for manual intervention and enabling continuous autonomous optimization

Inventive Principle:

Principle #25Self-service

Solution Approach 2:

The patent replaces manual mechanical optimization processes with an automated computational engine that uses algorithms to analyze market data, evaluate pricing strategies, and allocate advertising budgets, substituting human decision-making with automated systems

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

2Adaptability or versatility

If sellers increase advertising expenditure across multiple channels, then business visibility and reach improve, but cost control and expenditure minimization become more difficult

Engineering Contradiction:

Improveadvertising channel coverageVSAvoidadvertising expenditure

Core Design Contradiction:

Adaptability or versatilityVSLoss of energy

Solution Approach 1:

The system dynamically adjusts advertising expenditure across multiple channels in real-time based on performance metrics, market conditions, and business objectives, enabling flexible allocation that adapts to changing conditions while controlling overall spend

Inventive Principle:

Principle #15Dynamics

Solution Approach 2:

The automated engine changes advertising parameters such as bid prices, budget allocation, and channel mix based on real-time analysis of return on investment, allowing optimization of expenditure across different advertising channels

Inventive Principle:

Principle #35Parameter changes

3Speed

If sellers implement real-time optimization systems, then responsiveness to market conditions improves, but system complexity and implementation difficulty increase

Engineering Contradiction:

Improveresponse speedVSAvoidsystem complexity

Core Design Contradiction:

SpeedVSDevice complexity

Solution Approach 1:

The optimization system is segmented into modular components including the seller automated engine, market data feeds, pricing modules, and advertising allocation modules, allowing complex real-time optimization to be achieved through coordinated simpler functional units

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS8924245B2System for and method of automatic optimizing quantitative business objectives of sellers (advertisers) with synergistic pricing, promotions and advertisements, while simultaneously minimizing expenditures and discovery and optimizing allocation of advertising channels that optimize such objectives

Publication Date: 2014.12.30 PEAK SILVER ADVISORS LLC

AI summary

A system for and method of automatic optimizing quantitative business objectives of sellers (advertisers) with synergistic pricing, promotions and advertisements, while simultaneously minimizing expenditure and discovery and optimizing allocation of advertising channels that optimize such objectives.