Method and system for online advertising

• US 20040148222A1
• Filed: 01/24/2003
• Published: 07/29/2004
• Est. Priority Date: 01/24/2003
• Status: Abandoned Application

• Current Assignee: adMarketplace, Inc.
• Original Assignee: adMarketplace, Inc.
• Inventors: Waltz, James, Sabella, John
• Application Number:
  US10/351,689
• Publication Number:
  US 20040148222A1
• Time in Patent Office: Days
• US Class Current: 705/14
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0242 Determining effectiveness of advertisements
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A method and a system for online advertising in an advertisement auction environment. A current cost per click (CPC) for the advertisement is calculated. A click through rate (CTR) for the advertisement is calculated. An effective cost for the advertisement is calculated. Also, effective costs of a set of advertisements are calculated. The effective cost of the advertisement is compared with the effective costs of the set of advertisements to determine rankings of the advertisement and the set of advertisements. Priority statuses of the advertisement and of the set of advertisements are determined. A first set of data is transmitted to an advertiser that includes the effective cost for the advertisement, the effective costs of the set of advertisements, the rankings of the advertisement and the set of advertisements, the maximum price to the first priority status, the click through rate of the advertisement, the first rank status click through rate (the CTR for the best performing advertisement), a maximum price for a collection of advertisements that the advertisement is associated with, the priority statuses of the advertisements, and other data. A second set of data is received from the advertiser that includes changes to the advertisement and to the current CPC of the advertisement.

Claims

1. A method for online advertising in an advertisement auction environment, comprising:

(a) calculating a current cost per click for an advertisement, the cost per click being a price for the advertisement;

(b) calculating a click through rate of the advertisement, the click through rate being a ratio of a number of times the advertisement has been accessed divided by a number of times that the advertisement has been displayed;

(c) calculating an effective cost of the advertisement as a function of the cost per click and the click through rate;

(d) calculating effective costs for a set of advertisements, each of the set of advertisements being related to the advertisement;

(e) comparing the effective cost of the advertisement and the effective costs of the set of advertisements to determine rankings, the rankings ranking the advertisement and the set of advertisements;

(f) determining priority statuses of the advertisement and the set of advertisements;

(g) transmitting a first set of data including the current cost per click for the advertisement, the click through rate of the advertisement, the effective cost of the advertisement, the effective costs for the set of advertisements, the rankings, and the priority statuses; and

(h) receiving a second set of data relating to the advertisement, the second set of data including changes to the advertisement and to the current cost per click;

wherein the advertising auction environment presents a plurality of advertisers with data regarding advertisements.

2. The method of claim 1, wherein the method is performed using a computing arrangement in communication with a processor via a communications network.

3. The method of claim 2, wherein the processor includes a computer server arrangement.

4. A computer-readable storing medium storing a set of instructions, the set of instructions capable of being executed by a processor to implement a method for online advertising in an advertisement auction environment, the set of instructions performing the steps of:

(a) calculating a current cost per click for an advertisement, the cost per click being a price for the advertisement;

(b) calculating a click through rate of the advertisement, the click through rate being a ratio of a number of times the advertisement has been accessed divided by a number of times that the advertisement has been displayed;

(c) calculating an effective cost of the advertisement as a function of the cost per click and the click through rate;

(d) calculating effective costs for a set of advertisements, each of the set of advertisements being related to the advertisement;

(e) comparing the effective cost of the advertisement and the effective costs of the set of advertisements to determine rankings, the rankings ranking the advertisement and the set of advertisements;

(f) determining priority statuses of the advertisement and the set of advertisements;

(g) transmitting a first set of data including the current cost per click for the advertisement, the click through rate of the advertisement, the effective cost of the advertisement, the effective costs for the set of advertisements, the rankings, and the priority statuses; and

(h) receiving a second set of data relating to the advertisement, the second set of data including changes to the advertisement and to the current cost per click;

wherein the advertising auction environment presents a plurality of advertisers with data regarding advertisements.

5. The computer-readable storing medium of claim 4, wherein the method is performed using a computing arrangement in communication with a processor via a communications network.

6. The computer-readable storing medium of claim 5, wherein the processor includes a computer server arrangement.

7. A system comprising:

a processor;

at least one computing arrangement configured to communicate with the processor via a communications network; and

a computer-readable storing medium storing a set of instructions, the set of instructions capable of being executed by the processor to implement a method for online advertising in an advertisement auction environment, the set of instructions performing the steps of;

(a) calculating a current cost per click for an advertisement, the cost per click being a price for the advertisement;

(b) calculating a click through rate of the advertisement, the click through rate being a ratio of a number of times the advertisement has been accessed divided by a number of times that the advertisement has been displayed;

(c) calculating an effective cost of the advertisement as a function of the cost per click and the click through rate;

(d) calculating effective costs for a set of advertisements, each of the set of advertisements being related to the advertisement;

(e) comparing the effective cost of the advertisement and the effective costs of the set of advertisements to determine rankings, the rankings ranking the advertisement and the set of advertisements;

(f) determining priority statuses of the advertisement and the set of advertisements;

(g) transmitting a first set of data including the current cost per click for the advertisement, the click through rate of the advertisement, the effective cost of the advertisement, the effective costs for the set of advertisements, the rankings, and the priority statuses; and

(h) receiving a second set of data relating to the advertisement, the second set of data including changes to the advertisement and to the current cost per click;

wherein the advertising auction environment presents a plurality of advertisers with data regarding advertisements.