Performance-based online advertising system and method

• US 20050097204A1
• Filed: 09/23/2004
• Published: 05/05/2005
• Est. Priority Date: 09/23/2003
• Status: Active Grant

• Current Assignee: Marchex Incorporated
• Original Assignee: Marchex Incorporated
• Inventors: Korman, Walter, Keister, John, Christothoulou, Peter, Horowitz, Russell C., Caldwell, Ethan, Busby, John
• Granted Patent: US 7,668,950 B2
• Time in Patent Office: Days
• US Class Current: 705/14.69
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0273 Determination of fees for advertising
• CPC Class Codes: G06Q 30/0277 Online advertisement

Abstract

A system, method, and computer program product for online advertising, including computing and dynamically updating a cost-per-click (CPC) value of an advertisement for an advertisement traffic source based on a variable; and automatically uploading and distributing the advertisement to the traffic source. The variable includes price, advertisement traffic source, and/or advertiser variableS. Further embodiments include dynamically updating an advertisement listing that has a cost-per-acquisition (CPA)-based value with associated CPC or cost-per-1000 (CPM) values; and distributing the advertisement listing to an advertisement distribution network that serves the listing based on the CPC or CPM values. The distribution network includes CPC-based, CPA-based, and/or CPM-based distribution networks. Further embodiments include determining a CPC value for a CPA-based advertisement; and placing the advertisement on an advertising network at the determined CPC based on a ratio of an expected number of conversions at a CPA value divided by a number of clicks at the CPC.

Claims

1. A computer-implemented method for online advertising, comprising:

computing and dynamically updating a cost-per-click (CPC) value of an advertisement for an advertisement traffic source based on a variable; and

automatically uploading and distributing the advertisement to the advertisement traffic source,

wherein the variable includes a price variable, an advertisement traffic source variable, and/or an advertiser variable.

2. The method of claim 1, wherein the price variable includes a cost-per-acquisition (CPA) an advertiser is willing to pay for the advertisement, and/or a targeted conversion rate based on a cost-per-1000 (CPM), CPC, and/or the CPA.

3. The method of claim 1, wherein the advertiser variable includes a type of product associated with the advertisement, a type of conversion associated with the advertisement, a keyword associated with the advertisement, and/or a copy type associated with the advertisement.

4. The method of claim 1, wherein the advertisement traffic source variable includes an advertising distribution network associated with the advertisement traffic source, a conversion rate associated with the advertisement, a clickthrough rate associated with the advertisement, a rank of the advertisement on a web page associated with the advertisement traffic source, and/or a location of the advertisement on a web page associated with the advertisement traffic source.

5. The method of claim 4, wherein the conversion rate is based on a number of conversions in a predetermined time period divided by a number of clicks in the predetermined time period.

6. The method of claim 1, wherein the advertiser variable includes a geographical location of a customer searching for the advertisement of the advertiser, a time of day a customer is searching for the advertisement of the advertiser, a day of week a customer is searching for the advertisement of the advertiser, and/or a previous purchase made by a customer of the advertiser.

7. The method of claim 1, further comprising computing a cost-per-acquisition (CPA) an advertiser is willing to pay for the advertisement based on another advertisement competing with the distributed advertisement.

8. The method of claim 1, further comprising selecting a keyword associated with the advertisement based on a past performance of the selected keyword, a past performance of a category of keywords associated with the selected keyword, and/or a product associated with the selected keyword.

9. The method of claim 1, further comprising automatically tracking sales based on the advertisement.

10. A computer program product for online advertising, including one or more computer-readable instructions configured to cause one or more computer processors to perform the steps recited in claim 1.

11. A computer-implemented system for online advertising, including one or more computer processors configured to perform the steps recited in claim 1.

12. A computer-implemented method for online advertising, comprising:

dynamically updating an advertisement listing that has a cost-per-acquisition (CPA)-based value with an associated cost-per-click (CPC) value or cost-per-1000 (CPM) value; and

distributing the advertisement listing to an advertisement distribution network that serves the advertisement listing based on the CPC value or the CPM value,

wherein the advertisement distribution network includes a CPC-based advertisement distribution network, a CPA-based advertisement distribution network, and/or a CPM-based advertisement distribution network.

13. The method of claim 12, wherein the updating step is based on analyzing sample data obtained from serving the advertisement listing for a predetermined period of time.

14. The method of claim 12, further comprising:

automatically inserting the advertisement listing into the advertisement distribution network; and

managing the advertisement listing in the advertisement distribution network to approximate a targeted CPA-based value.

15. The method of claim 12, further comprising:

measuring a performance of the advertisement listing based on a variable; and

dynamically updating a rank of the advertisement listing in the advertisement distribution network to reflect a performance of the advertisement listing based on the variable.

16. The method of claim 15, wherein the variable includes a number of clicks associated with the advertisement listing, a number of conversions associated with the advertisement listing, a clickthrough rate associated with the advertisement listing, a conversion rate associated with the advertisement listing, and/or monetization over time associated with the advertisement listing.

17. The method of claim 12, further comprising:

tracking a click on the advertisement listing or a visit of a user to a site of an advertiser associated with the advertisement listing, across multiple user sessions; and

determining a subsequent conversion of the advertisement listing by the user based on the click or the visit of the user to the site of the advertiser.

18. The method of claim 12, further comprising outputting the advertisement listing in a CPC-based ranked order, a CPA-based ranked order, and/or a CPM-based ranked order.

19. A computer program product for online advertising, including one or more computer-readable instructions configured to cause one or more computer processors to perform the steps recited in claim 12.

20. A computer-implemented system for online advertising, including one or more computer processors configured to perform the steps recited in claim 12.

21. A computer-implemented method for online advertising, the method comprising the steps of:

determining a cost-per-click (CPC) value for a cost-per-acquisition (CPA)-based advertisement; and

placing the advertisement on an advertising network at the determined cost-per-click (CPC),

wherein the placement of the advertisement is determined based on a ratio of an expected number of conversions, associated with the advertisement, at a cost-per-acquisition (CPA) value, associated with the advertisement, divided by a number of clicks, associated with the advertisement, at the CPC value determined for the advertisement.

22. The method of claim 21, wherein the advertising network includes a CPC-based advertising network, a CPA-based advertising network, and/or a cost-per-1000 (CPM)-based advertising network.

23. The method of claim 22, further comprising:

determining a keyword associated with the advertisement; and

placing the advertisement and the associated keyword on the CPC advertising network.

24. The method of claim 21, further comprising determining the CPC value for the advertisement based on a price determined to acquire a paying customer associated with the advertisement, wherein the determined price is lower than a price an advertiser is willing to pay for the customer.

25. The method of claim 21, further comprising raising the CPC value for the advertisement when the ratio is above a profit value.

26. The method of claim 21, further comprising lowering the CPC value for the advertisement when the ratio is below a profit value.

27. The method of claim 21, further comprising removing the advertisement from the advertising network when the ratio is below a profit value.

28. A computer program product for online advertising, including one or more computer-readable instructions configured to cause one or more computer processors to perform the steps recited in claim 21.

29. A computer-implemented system for online advertising, including one or more computer processors configured to perform the steps recited in claim 21.