METHOD OF DETERMINING COST-PER-CLICK FOR KEYWORD ADVERTISEMENT

• US 20080249842A1
• Filed: 04/03/2008
• Published: 10/09/2008
• Est. Priority Date: 04/04/2007
• Status: Abandoned Application

• Current Assignee: Naver Corporation
• Original Assignee: NHN Corporation
• Inventors: Song, Ki Ho, Lee, Joongoo
• Application Number:
  US12/062,460
• Publication Number:
  US 20080249842A1
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0201 Market modelling; Market analysis; Collecting market data
• CPC Class Codes: G06Q 30/0256 User search

Abstract

Disclosed is a method of computing a cost-per-click for a keyword advertisement. The method comprises receiving a plurality of submissions of proposed keyword advertisements for an identical keyword. Each submission comprises an advertisement content and a willing cost-per-click. The advertisement content of each submission or historical data is analyzed so as to generate a first index for each submission. A mathematical operation using the willing cost-per-click and the first index is performed so as to generate a second index for each submission. The second indexes of the submissions are ordered so as to generate rankings of the submissions. A cost-per-click for each submission is computed. A first computed cost-per-click for a first submission having a first rank is computed using the second index of a second submission having a second rank that is immediately next to the first rank.

Claims

1. A method of computing a cost-per-click for a keyword advertisement, the method comprising:

receiving a plurality of submissions of proposed keyword advertisements for an identical keyword, each submission comprising an advertisement content and a willing cost-per-click;

analyzing the advertisement content of each submission based on relevance of the advertisement content of the submission to the identical keyword, thereby generating a first index for each submission;

performing a mathematical operation using the willing cost-per-click and the first index so as to generate a second index for each submission;

ordering the second indexes of the plurality of submissions so as to generate rankings of the plurality of submissions, wherein each of the plurality of submissions for the identical keyword has a rank; and

computing a cost-per-click for at least part of the plurality of submissions, wherein a first computed cost-per-click for a first submission having a first rank is computed using the second index of a second submission having a second rank that is immediately next to the first rank.

2. The method of claim 1, wherein the advertisement content comprises information that is to be displayed on a search result page in response to a search using the keyword.

3. The method of claim 1, wherein the advertisement content comprises information contained in a webpage, an anchor tag of which is placed on a search result page in response to a search using the keyword.

4. The method of claim 1, wherein the first index is a value indicative of the degree of relevance of the advertisement content of the submission to the keyword.

5. The method of claim 1, wherein analyzing comprises counting the keyword and its derivative terms in the advertisement content, wherein the more the keyword and its derivative terms are, the higher the first index is.

6. The method of claim 1, wherein the mathematical operation comprises at least one selected from the group consisting of a summation of the first index and the willing cost-per-click, a multiplication of one or more predetermined coefficients with at least one of the first index and the willing cost-per-click, a multiplication of the first index and the willing cost-per-click, a division of the first index by the willing cost-per-click, a division of the willing cost-per-click by the first index, a deduction of the first index from the willing cost-per-click, and deduction of the willing cost-per-click from the first index.

7. The method of claim 1, further comprising sending a first computed cost-per-click to a first advertiser of the first submission.

8. The method of claim 7, further comprising:

receiving an acceptance of the first computed cost-per-click from the first advertiser;

conducting a keyword advertisement for the first advertiser; and

charging to the first advertiser at the first computed cost-per-click.

9. The method of claim 1, wherein the first computed cost-per-click is between the willing cost-per-click of the first submission and the willing cost-per-click of the second submission.

10. The method of claim 1, wherein the first computed cost-per-click is not greater than the willing cost-per-click of the first submission.

11. The method of claim 1, wherein the first computed cost-per-click is greater than the willing cost-per-click of the second submission as a function of the willing cost-per-click of the second submission.

12. The method of claim 1, wherein the first rank is immediately higher than the second rank.

13. The method of claim 1, wherein the keyword comprises one or more word.

14. The method of claim 1, further comprising:

providing historical data of clicking-throughs for at least part of the proposed keyword advertisements; and

analyzing the historical data so as to modify the first index for the at least part of the proposed keyword advertisements.

15. The method of claim 1, wherein each submission further comprises a desired rank, wherein the method further comprising:

determining whether the desired rank is higher or lower than the rank of the submission generated by ordering the second indexes, wherein if the desired rank is higher than the rank of the submission generated by ordering, the cost-per-click is not computed for the particular submission.

16. A method of computing a cost-per-click for a keyword advertisement, the method comprising:

receiving a plurality of submissions of proposed keyword advertisements for an identical keyword, each submission comprising a willing cost-per-click and an address of a webpage that is to be displayed on a search result page in response to a search using the keyword;

providing historical data of clicking-throughs for at least part of the proposed keyword advertisements that have been previously serviced;

analyzing the historical data so as to generate a first index for the at least part of the proposed keyword advertisements;

performing a mathematical operation using the willing cost-per-click and the first index so as to generate a second index for each submission;

ordering the second indexes of the plurality of submissions so as to generate rankings of the plurality of submissions, wherein each of the plurality of submissions for the identical keyword has a rank; and

computing a cost-per-click for one or more of the plurality of submissions, wherein the cost-per-click of a first one of the plurality of submissions having a first rank is computed using the second index of a second one of the plurality of submissions having a second rank that is immediately next to the first rank.

17. The method of claim 16, wherein analyzing the historical data comprises ranking the numbers of clicking-throughs for the at least part of the proposed keyword advertisements, wherein the first index is generated based on the ranking of the numbers.

18. The method of claim 17, wherein the greater the number is, the higher the first index is.

19. The method of claim 16, wherein the first index is generated further based on the degree of relevance of the advertisement content of the submission to the keyword.

20. The method of claim 16, wherein the mathematical operation comprises at least one selected from the group consisting of a summation of the first index and the willing cost-per-click, a multiplication of one or more predetermined coefficients with at least one of the first index and the willing cost-per-click, a multiplication of the first index and the willing cost-per-click, a division of the first index by the willing cost-per-click, a division of the willing cost-per-click by the first index, a deduction of the first index from the willing cost-per-click, and deduction of the willing cost-per-click from the first index.

21. The method of claim 16, wherein the first computed cost-per-click is between the willing cost-per-click of the first submission and the willing cost-per-click of the second submission.

22. The method of claim 16, wherein the first computed cost-per-click is not greater than the willing cost-per-click of the first submission.

23. The method of claim 16, wherein the first rank is immediately higher than the second rank.

24. The method of claim 16, wherein each submission further comprises a desired rank, wherein the method further comprising:

determining whether the desired rank is higher or lower than the rank of the submission generated by ordering the second indexes, wherein if the desired rank is higher than the rank of the submission generated by ordering, the cost-per-click is not computed for the particular submission.