Automated price maintenance for use with a system in which advertisements are rendered with relative preference based on performance information and price information

• US 8,762,203 B2
• Filed: 10/25/2010
• Issued: 06/24/2014
• Est. Priority Date: 11/08/2002
• Status: Active Grant

• Current Assignee: Google LLC (Alphabet Inc.)
• Original Assignee: Google Inc. (Alphabet Inc.)
• Inventors: Veach, Eric, Kamangar, Salar Arta
• Primary Examiner(s): CHAMPAGNE, DONALD
• Application Number:
  US12/911,605
• Publication Number:
  US 20110040614A1
• Time in Patent Office: 1,338 Days
• Field of Search: 705/14.46, 705/14.54, 705/14.55, 705/14.71
• US Class Current: 705/14.46
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0243 Comparative campaigns
• CPC Class Codes: G06Q 30/0247 Calculate past, present or future revenues
• CPC Class Codes: G06Q 30/0257 User requested
• CPC Class Codes: G06Q 30/0273 Determination of fees for advertising
• CPC Class Codes: G06Q 30/0275 Auctions

Abstract

A cost maintenance scheme useful with an advertising system which orders ads in a manner that maximizes both their relevance and their economic value, and which provides a fair bidding process in which a winning bidder is assured of not having paid too much. Ordering may be done based on accepted maximum ad bid information and/or ad performance information. For example, this information may be used to determine a position value. Cost may be determined based on accepted maximum ad bid information and/or performance information. Billing the determined cost may be subject to a condition precedent.

Claims

1. A computer-implemented method comprising:

a) for each of a plurality of ads, determining, by a computer system including a least one computer, an ad preference value as a function of performance information associated with the ad and a maximum cost for a result bid associated with the ad, wherein the performance information associated with the ad includes an actual or expected selection rate of the ad; and

b) determining, by the computer system, a cost for each of the plurality of ads using performance information of the ad and the maximum cost for a result bid associated with an ad having a next lower ad preference value to the ad, the determined cost being lower than the maximum cost for a result bid associated with the ad.

2. The computer-implemented method of claim 1 wherein, for each of the plurality of ads, the maximum cost for a result bid associated with the ad is a maximum cost per selection bid.

3. The computer-implemented method of claim 2 further comprising:

c) accepting, by the computer system, result information indicating whether or not a selection on one of the plurality of ads occurred; and

d) billing, by the computer system, the cost determined to an advertiser associated with the one of the plurality of ads only if the accepted result information indicates that a selection occurred.

4. The computer-implemented method of claim 1 wherein the ad preference value is a placement value.

5. The computer-implemented method of claim 1 wherein each of the plurality of ads is associated with a group of one or more keywords.

6. The computer-implemented method of claim 1 wherein, for each of the plurality of ads, the maximum cost for a result bid is a maximum average cost per result associated with the ad.

7. The computer-implemented method of claim 1 wherein, for each of the plurality of ads, the maximum cost for a result bid is a maximum cost for an incremental result bid associated with the ad.

8. Apparatus comprising:

a) one or more processors;

b) at least one input device; and

c) one or more storage devices storing processor-executable instructions which, when executed by one or more processors, perform a method of;

1) for each of a plurality of ads, determining an ad preference value as a function of performance information associated with the ad and a maximum cost for a result bid associated with the ad, wherein the performance information associated with the ad includes an actual or expected selection rate of the ad, and

2) determining a cost for each of the plurality of ads using performance information of the ad and the maximum cost for a result bid associated with an ad having a next lower ad preference value to the ad, the determined cost being lower than the maximum cost for a result bid associated with the ad.

9. The apparatus of claim 8 wherein, for each of the plurality of ads, the maximum cost for a result bid associated with the ad is a maximum cost per selection bid.

10. The apparatus of claim 9 wherein the method further includesaccepting result information indicating whether or not a selection on one of the plurality of ads occurred, andbilling the cost determined to an advertiser associated with the one of the plurality of ads only if the accepted result information indicates that a selection occurred.

11. The apparatus of claim 8 wherein the ad preference value is a placement value.

12. The apparatus of claim 8 wherein each of the plurality of ads is associated with a group of one or more keywords.

13. The apparatus of claim 8 wherein, for each of the plurality of ads, the maximum cost for a result bid is a maximum average cost per result associated with the ad.

14. The apparatus of claim 8 wherein, for each of the plurality of ads, the maximum cost for a result bid is a maximum cost for an incremental result bid associated with the ad.

15. A computer-implemented method comprising:

a) for each of a plurality of ads, determining, by a computer system including a least one computer, an ad preference value as a function of performance information associated with the ad and a maximum cost for a result bid associated with the ad, wherein the performance information associated with the ad includes an actual or expected conversion rate of the ad; and

b) determining, by the computer system, a cost for each of the plurality of ads using performance information of the ad and the maximum cost for a result bid associated with an ad having a next lower ad preference value to the ad, the determined cost being lower than the maximum cost for a result bid associated with the ad.

16. The computer-implemented method of claim 15 wherein, for each of the plurality of ads, the maximum cost for a result bid associated with the ad is a maximum cost per conversion bid.

17. The computer-implemented method of claim 15 further comprising:

c) accepting, by the computer system, result information indicating whether or not a conversion on one of the plurality of ads occurred; and

d) billing, by the computer system, the cost determined to an advertiser associated with the one of the plurality of ads only if the accepted result information indicates that a conversion occurred.

18. The computer-implemented method of claim 15 wherein the ad preference value is a placement value.

19. The computer-implemented method of claim 15 wherein each of the plurality of ads is associated with a group of one or more keywords.