ADAPTIVE BIDDING SCHEME FOR GUARANTEED DELIVERY CONTRACTS

• US 20100100471A1
• Filed: 10/22/2008
• Published: 04/22/2010
• Est. Priority Date: 10/22/2008
• Status: Abandoned Application

• Current Assignee: Oath Inc. (Verizon Communications Inc.)
• Original Assignee: Yahoo! Inc. (Apollo Global Management, Inc.)
• Inventors: McAfee, R. Preston, Kantak, Darshan V., Li, Sai-Ming
• Application Number:
  US12/255,979
• Publication Number:
  US 20100100471A1
• Time in Patent Office: Days
• US Class Current: 705/37
• 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

Disclosed are apparatus and methods for providing a bidding mechanism for guaranteed delivery contracts. In one embodiment, a method includes (i) providing a plurality of bid parameters that were updated based on a current delivery and/or a running cost per impression for such guaranteed delivery contract; (ii) if the advertisement impression is eligible to serve the guaranteed delivery contract, determining whether to submit a bid for the advertisement impression for the guaranteed delivery contract based on one or more of the bid parameters; and (iii) if it is determined that a bid is to be submitted for the guaranteed delivery contract, submitting a bid for the advertisement impression for the guaranteed delivery contract so that a bid amount is selected to be limited by one or more of the bid parameters.

Claims

1. A method for bidding for an advertisement impression for a guaranteed delivery contract wherein the advertisement impression corresponds to a plurality of user target attributes for which an on-line advertisement can be displayed, the method comprising:

providing a plurality of bid parameters that were updated based on a current delivery and/or a running cost per impression for such guaranteed delivery contract;

if the advertisement impression is eligible to serve the guaranteed delivery contract, determining whether to submit a bid for the advertisement impression for the guaranteed delivery contract based on one or more of the bid parameters; and

if it is determined that a bid is to be submitted for the guaranteed delivery contract, submitting a bid for the advertisement impression for the guaranteed delivery contract so that a bid amount is selected to be limited by one or more of the bid parameters.

2. The method of claim 1, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number that is generated uniformly between 0.0 and 1.0 is less than a first bid parameter that corresponds to an adjustable probability value of submitting a bid for the guaranteed delivery contract.

3. The method of claim 1, wherein the bid amount is selected as a random number that is generated uniformly to be between zero and a second bid parameter that corresponds to a maximum value of the bid for the guaranteed delivery contract.

4. The method of claim 1, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number is less than a first bid parameter, α

, that corresponds to an adjustable probability value of submitting a bid and wherein the bid amount is selected as a random number that is less than a second bid parameter, p*, that corresponds to a maximum value of the bid, the method further comprising;

after each period k of a campaign duration that is divided into a plurality of periods N for such guaranteed delivery contract, adjusting the first and second bid parameters based on a current delivery after such each period as compared to a delivery goal after such each period and based on a running cost per impression (CPI) after such period as compared to a maximum average CPI for the campaign.

5. The method of claim 4, wherein:

the first parameter is increased and the second parameter is increased when the current delivery d(k) is less than the goal delivery g(k) and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both decreased when the current delivery is greater than the goal delivery and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both increased when the current delivery is less than the goal delivery and the running CPI is less than the maximum CPI after such each period; and

the first parameter is decreased and the second parameter is increased when the current delivery is greater than the goal delivery and the running CPI is less than the maximum CPI after such each period.

6. The method of claim 4, wherein the first and second parameters are limited by the following bounds:

$\mathrm{\alpha <br><br>}<br><br>\left(k+1\right)=\max <br><br>\left(\min <br><br>\left(\mathrm{\alpha <br><br>}<br><br>\left(k\right)+\mathrm{\beta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),1\right),0\right)$ $p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{\mathrm{\rho <br><br>}}}^{*}\right)$

where c(k) is the cost incurred at the end of period k, d(k) is the current delivery at the end of period k, α

(k) is the first parameter at the end of period k, p*(k) is the second parameter at the end of period k, β and

γ

are small positive numbers that represent the adaptation rates, and p* is the maximum value for p*.

7. The method of claim 6, wherein the second parameter is further adjusted according to:

$p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right)-\mathrm{\eta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{p}}^{*}\right)$

where η

is a small positive number.

8. An apparatus for bidding for an advertisement impression for a guaranteed delivery contract wherein the advertisement impression corresponds to a plurality of user target attributes for which an on-line advertisement can be displayed, the apparatus comprising at least a processor and a memory, wherein the processor and/or memory are configured to perform the following operations:

providing a plurality of bid parameters that were updated based on a current delivery and/or a running cost per impression for such guaranteed delivery contract;

if the advertisement impression is eligible to serve the guaranteed delivery contract, determining whether to submit a bid for the advertisement impression for the guaranteed delivery contract based on one or more of the bid parameters; and

if it is determined that a bid is to be submitted for the guaranteed delivery contract, submitting a bid for the advertisement impression for the guaranteed delivery contract so that a bid amount is selected to be limited by one or more of the bid parameters.

9. The apparatus of claim 8, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number that is generated uniformly between 0.0 and 1.0 is less than a first bid parameter that corresponds to an adjustable probability value of submitting a bid for the guaranteed delivery contract.

10. The apparatus of claim 8, wherein the bid amount is selected as a random number that is generated uniformly to be between zero and a second bid parameter that corresponds to a maximum value of the bid for the guaranteed delivery contract.

11. The apparatus of claim 8, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number is less than a first bid parameter, α

, that corresponds to an adjustable probability value of submitting a bid and wherein the bid amount is selected as a random number that is less than a second bid parameter, p*, that corresponds to a maximum value of the bid, wherein the processor and/or memory are further configured to perform the following operation;

after each period k of a campaign duration that is divided into a plurality of periods N for such guaranteed delivery contract, adjusting the first and second bid parameters based on a current delivery after such each period as compared to a delivery goal after such each period and based on a running cost per impression (CPI) after such period as compared to a maximum average CPI for the campaign.

12. The apparatus of claim 11, wherein:

the first parameter is increased and the second parameter is increased when the current delivery d(k) is less than the goal delivery g(k) and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both decreased when the current delivery is greater than the goal delivery and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both increased when the current delivery is less than the goal delivery and the running CPI is less than the maximum CPI after such each period; and

the first parameter is decreased and the second parameter is increased when the current delivery is greater than the goal delivery and the running CPI is less than the maximum CPI after such each period.

13. The apparatus of claim 11, wherein the first and second parameters are limited by the following bounds:

$\mathrm{\alpha <br><br>}<br><br>\left(k+1\right)=\max <br><br>\left(\min <br><br>\left(\mathrm{\alpha <br><br>}<br><br>\left(k\right)+\mathrm{\beta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),1\right),0\right)$ $p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{\mathrm{\rho <br><br>}}}^{*}\right)$

where c(k) is the cost incurred at the end of period k, d(k) is the current delivery at the end of period k, α

(k) is the first parameter at the end of period k, p*(k) is the second parameter at the end of period k, β and

γ

are small positive numbers that represent the adaptation rates, and p* is the maximum value for p*.

14. The apparatus of claim 13, wherein the second parameter is further adjusted according to:

$p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right)-\mathrm{\eta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{p}}^{*}\right)$

where η

is a small positive number.

15. At least one computer readable storage medium having computer program instructions stored thereon for bidding for an advertisement impression for a guaranteed delivery contract wherein the advertisement impression corresponds to a plurality of user target attributes for which an on-line advertisement can be displayed and that are arranged to perform the following operations:

providing a plurality of bid parameters that were updated based on a current delivery and/or a running cost per impression for such guaranteed delivery contract;

if the advertisement impression is eligible to serve the guaranteed delivery contract, determining whether to submit a bid for the advertisement impression for the guaranteed delivery contract based on one or more of the bid parameters; and

if it is determined that a bid is to be submitted for the guaranteed delivery contract, submitting a bid for the advertisement impression for the guaranteed delivery contract so that a bid amount is selected to be limited by one or more of the bid parameters.

16. The at least one computer readable storage medium of claim 15, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number that is generated uniformly between 0.0 and 1.0 is less than a first bid parameter that corresponds to an adjustable probability value of submitting a bid for the guaranteed delivery contract.

17. The at least one computer readable storage medium of claim 15, wherein the bid amount is selected as a random number that is generated uniformly to be between zero and a second bid parameter that corresponds to a maximum value of the bid for the guaranteed delivery contract.

18. The at least one computer readable storage medium of claim 15, wherein it is determined that a bid is to be submitted for the guaranteed delivery contract when a randomly selected number is less than a first bid parameter, α

, that corresponds to an adjustable probability value of submitting a bid and wherein the bid amount is selected as a random number that is less than a second bid parameter, p*, that corresponds to a maximum value of the bid, wherein the computer program instructions are further arranged to perform the following operation;

after each period k of a campaign duration that is divided into a plurality of periods N for such guaranteed delivery contract, adjusting the first and second bid parameters based on a current delivery after such each period, d(k), as compared to a delivery goal after such each period, g(k) and based on a running cost per impression (CPI) after such period as compared to a maximum average CPI for the campaign.

19. The at least one computer readable storage medium of claim 18, wherein:

the first parameter is increased and the second parameter is increased when the current delivery d(k) is less than the goal delivery g(k) and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both decreased when the current delivery d(k) is greater than the goal delivery g(k) and the running CPI is greater than the maximum CPI after such each period;

the first parameter and the second parameter are both increased when the current delivery d(k) is less than the goal delivery g(k) and the running CPI is less than the maximum CPI after such each period; and

the first parameter is decreased and the second parameter is increased when the current delivery d(k) is greater than the goal delivery g(k) and the running CPI is less than the maximum CPI after such each period.

20. The at least one computer readable storage medium of claim 18, wherein the first and second parameters are limited by the following bounds:

$\mathrm{\alpha <br><br>}<br><br>\left(k+1\right)=\max <br><br>\left(\min <br><br>\left(\mathrm{\alpha <br><br>}<br><br>\left(k\right)+\mathrm{\beta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),1\right),0\right)$ $p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{\mathrm{\rho <br><br>}}}^{*}\right)$

where c(k) is the cost incurred at the end of period k, d(k) is the current delivery at the end of period k, α

(k) is the first parameter at the end of period k, p*(k) is the second parameter at the end of period k, β and

γ

are small positive numbers that represent the adaptation rates, and p* is the maximum value for p*.

21. The at least one computer readable storage medium of claim 20, wherein the second parameter is further adjusted according to:

$p^{*}<br><br>\left(k+1\right)=\min \left(\max \left(p^{*}<br><br>\left(k\right)-\mathrm{\gamma <br><br>}\left(\frac{c<br><br>\left(k\right)}{d<br><br>\left(k\right)}-\mathrm{\rho <br><br>}\right)-\mathrm{\eta <br><br>}<br><br>\left(g<br><br>\left(k\right)-d<br><br>\left(k\right)\right),\mathrm{\rho <br><br>}\right),{\stackrel{\_}{p}}^{*}\right)$

where η

is a small positive number.