Auction-Pricing Many Substitute Products

• US 20090112653A1
• Filed: 10/31/2007
• Published: 04/30/2009
• Est. Priority Date: 10/31/2007
• Status: Active Grant

• Current Assignee: R2 Solutions LLC (Acacia Research Corporation)
• Original Assignee: Yahoo! Inc. (Apollo Global Management, Inc.)
• Inventors: Li, Sai-Ming (Eliot), Chang, Chi-Chao, McAfee, Randolph Preston, Kantak, Darshan
• Granted Patent: US 8,156,032 B2
• Time in Patent Office: Days
• US Class Current: 705/7
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method of providing advertising services selects a finite set of topics, and arranges the selected set of topics into a hierarchical structure. The method classifies impression items into the nodes within the hierarchical structure, and allows bidding against the nodes within the hierarchical structure. Some embodiments allow a bidder to request a refinement of the hierarchical structure. These embodiments receive such a request, and compare the request to a set of criteria. If the request meets the set of criteria, then based on the request, the method divides a first node in the hierarchical structure to at least a second and third node. The method allows bidders to bid on each of the first, second, and third nodes. Preferably, the method receives several bids for one or more of the nodes within the hierarchical structure, and calculates an equilibrium price for each node. The bids are for purchasing the right to present content in relation to a node. The method optionally measures a performance for the nodes within the hierarchical structure. Based on the measure of performance for the nodes, the method preferably removes an under-performing node from the hierarchical structure. Generation and/or maintenance of an under-performing node may lower the price of one or more nodes in the hierarchical structure. Additional embodiments include a system and/or a computer readable medium for performing the foregoing.

Claims

1. A method of providing advertising services, the method comprising:

selecting a finite set of topics;

arranging the selected set of topics into a hierarchical structure;

classifying impression items into the nodes within the hierarchical structure;

allowing bidding against the nodes within the hierarchical structure.

2. The method of claim 1, further comprising:

allowing a bidder to request a refinement of the hierarchical structure;

receiving such a request;

comparing the request to a set of criteria.

3. The method of claim 2, further comprising:

determining that the request meets the set of criteria;

based on the request, dividing a first node in the hierarchical structure to at least a second and third node.

4. The method of claim 3, further comprising:

allowing bidders to bid on at least one of the second and third nodes.

5. The method of claim 1, further comprising:

receiving a plurality of bids for a first node within the hierarchical structure; and

calculating an equilibrium price the first node, the bids for purchasing the right to present content in relation to a node.

6. The method of claim 1, further comprising:

measuring a performance for the nodes within the hierarchical structure.

7. The method of claim 6, further comprising:

based on the measure of performance for the nodes, removing an underperforming node from the hierarchical structure.

8. A computer readable medium storing a program for providing advertising services, the program comprising sets of instructions for:

selecting a finite set of topics;

arranging the selected set of topics into a hierarchical structure;

classifying impression items into the nodes within the hierarchical structure;

allowing bidding against the nodes within the hierarchical structure.

9. The computer readable medium of claim 8, further comprising:

allowing a bidder to request a refinement of the hierarchical structure;

receiving such a request;

comparing the request to a set of criteria.

10. The computer readable medium of claim 9, further comprising:

determining that the request meets the set of criteria;

based on the request, dividing a first node in the hierarchical structure to at least a second and third node.

11. The computer readable medium of claim 10, further comprising:

allowing bidders to bid on at least one of the second and third nodes.

12. The computer readable medium of claim 8, further comprising:

receiving a plurality of bids for a first node within the hierarchical structure;

calculating an equilibrium price the first node, the bids for purchasing the right to present content in relation to a node.

13. The computer readable medium of claim 8, further comprising:

measuring a performance for the nodes within the hierarchical structure.

14. The computer readable medium of claim 13, further comprising:

based on the measure of performance for the nodes, removing an underperforming node from the hierarchical structure.

15. A system for providing advertising services, the system comprising a set of modules for:

selecting a finite set of topics;

arranging the selected set of topics into a hierarchical structure;

classifying impression items into the nodes within the hierarchical structure;

allowing bidding against the nodes within the hierarchical structure.

16. The system of claim 15, the set of modules further comprising modules for:

allowing a bidder to request a refinement of the hierarchical structure;

receiving such a request;

comparing the request to a set of criteria.

17. The system of claim 16, further comprising modules for:

determining that the request meets the set of criteria;

based on the request, dividing a first node in the hierarchical structure to at least a second and third node.

18. The system of claim 17, further comprising a module for:

allowing bidders to bid on at least one of the second and third nodes.

19. The system of claim 15, further comprising modules for:

receiving a plurality of bids for a first node within the hierarchical structure; and

calculating an equilibrium price the first node, the bids for purchasing the right to present content in relation to a node.

20. The system of claim 15, further comprising a module for:

measuring a performance for the nodes within the hierarchical structure.

21. The system of claim 20, further comprising a module for:

based on the measure of performance for the nodes, removing an underperforming node from the hierarchical structure.