Managing bids in a real-time auction for advertisements

• US 8,831,987 B2
• Filed: 04/20/2011
• Issued: 09/09/2014
• Est. Priority Date: 12/19/2006
• Status: Active Grant

• Current Assignee: Magnite, Inc.
• Original Assignee: The Rubicon Project Incorporated
• Inventors: Knapp, Jason J. A., Blanco, Fabrizio
• Primary Examiner(s): Baird, Edward
• Application Number:
  US13/091,121
• Publication Number:
  US 20120030034A1
• Time in Patent Office: 1,238 Days
• Field of Search: 705/37, 705/14, 705/14.4
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0255 based on user history
• CPC Class Codes: G06Q 30/0269 based on user profile or attribute
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0277 Online advertisement
• CPC Class Codes: G06Q 30/08 Auctions

Abstract

A method and system conduct an auction for advertising across multiple markets. A first market conducts a first auction for a first advertising impression. A first bid is selected as the auction winner and a ratio is computed as the first bid plus a spread to the second highest bid. The price to be paid is the lower of the first bid or the first bid multiplied by the ratio. The first bid, second bid, and spread are transmitted to a second market for a second advertising impression auction. The second market respects the rules of the first market'"'"'s auction where such that if the first bid is selected as the winner, a ratio is computed as the first bid plus the spread to the next highest bid. The price to be paid for the second impression is the first bid multiplied by the new ratio.

Claims

1. A method for conducting an auction for advertising, said method comprising:

receiving, by a computing system conducting an auction of a first market, a maximum bid from a first advertiser for placement of a first advertisement in the first market for an advertising impression in the first market;

determining, by the computing system, a maximum bid from a second advertiser for placement of a second advertisement in the first market, the maximum bid from the second advertiser being a next highest bid amount to that of the maximum bid from the first advertiser;

selecting, by the computing system, the maximum bid from the first advertiser associated with the first advertisement as a winner of the first auction in the first market;

computing, by the computing system, a first market ratio defined by the maximum bid from the second advertiser plus a spread above the maximum bid from the second advertiser divided by the maximum bid from the first advertiser;

determining, by the computing system, a first price to be paid by the first advertiser for placement of the first advertisement in the first market, the first price to be paid being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the first market ratio;

transmitting, from the computing system of the first market via a communications channel, the maximum bid from the first advertiser, the maximum bid from the second advertiser, and the spread to an auction in a second market for an advertising impression in the second market, the auction in the second market being operated by the computing system;

determining, by the computing system, a maximum bid from a third advertiser for placement of a third advertisement in the second market;

selecting, by the computing system, the maximum bid from the first advertiser as a winner of the auction in the second market as a result of the maximum bid from the first advertiser being the highest bid in the second market;

determining, by the computing system, a second price to be paid by the first advertiser, the second price being for placement of the first advertisement in the second market by;

determining, by the computing system, a next highest bid in the second market by comparing the maximum bid from the second advertiser and the maximum bid from the third advertiser;

computing, by the computing system, a second market ratio defined by the next highest bid in the second market plus a spread above the next highest bid in the second market divided by the maximum bid from the first advertiser; and

computing, by the computing system, the second price to be paid by the first advertiser, the second price being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the second market ratio; and

notifying, by the computing system communicating via the communications channel, the first market of the second price to be paid in the second market by the first advertiser.

2. The method of claim 1, wherein the auction in the first market comprises an asynchronous auction wherein bids are placed ahead of an actual occurrence of an impression.

3. The method of claim 1, wherein the maximum bid from the first advertiser comprises a bid that has been converted to a predicted cost per thousand impressions (CPM) bid.

4. The method of claim 1, wherein the maximum bid from the third advertiser comprises a default bid for the second market.

5. The method of claim 1, wherein the maximum bid from the third advertiser comprises a highest bid received from multiple third party bidders.

6. The method of claim 1, wherein the second market notifies the first market when redirecting an impression back to the first market.

7. The method of claim 1, wherein the second market notifies the first market using a pixel or server side message.

8. The method of claim 1, wherein conducting the auctions includes performing dynamic bidding in real time.

9. The method of claim 8, wherein conducting the auctions includes performing bidding that is dynamic and occurs in real time, and wherein conducting the auctions further include transmitting a variety of types of information about a user to receive an advertisement for which the auction is being conducted to solicit the bids.

10. The method of claim 9, wherein transmitting a variety of types of information includes transmitting at least one of prior bidding experiences, particular user based information based on a cookie, IP address information, and GPS based location information.

11. A system for conducting an auction for advertising comprising:

a computing system configured to conduct a first auction for an advertising impression in a first market, said computing system configured to;

receive, at the first market, a maximum bid from a first advertiser for placement of a first advertisement in the first market for the first advertising impression;

determine, at the first market, a maximum bid from a second advertiser for placement of a second advertisement, the maximum bid from the second advertiser being a next highest bid amount to that of the maximum bid from the first advertiser, auction winner;

compute a first market ratio defined by the maximum bid from the second advertiser plus a spread above the maximum bid from the second advertiser divided by the maximum bid from the first advertiser; and

determine a first price to be paid by the first advertiser for placement of the first advertisement in the first market, the first price to be paid being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the first market ratio;

the computing system further being configured to;

receive the maximum bid from the first advertiser, the maximum bid from the second advertiser, and the spread to an auction in a second market;

conduct the auction in the second market for a second advertising impression by;

determining, at the second computing system, a maximum bid from a third advertiser for placement of a third advertisement;

selecting the maximum bid from the first advertiser as a winner of the auction in the second market as a result of the maximum bid from the first advertiser being the highest bid in the second market;

determining a second price to be paid by the first advertiser for placement of the first advertisement in the second market by;

determining a next highest bid in the second market by comparing the maximum bid from the second advertiser and the maximum bid from the third advertiser;

computing a second market ratio defined by the next highest bid in the second market plus a spread above the next highest bid in the second market divided by the maximum bid from the first advertiser; and

computing the second price to be paid by the first advertiser, the second price being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the second market ratio; and

notify the first market of the second price to be paid in the second market by the first advertiser.

12. The system of claim 11, wherein the auction in the first market comprises an asynchronous auction wherein bids are placed ahead of an actual occurrence of an impression.

13. The system of claim 11, wherein the maximum bid from the first advertiser comprises a bid that has been converted to a predicted cost per thousand impressions (CPM) bid.

14. The system of claim 11, wherein the maximum bid from the third advertiser comprises a default bid for the second market.

15. The system of claim 11, wherein the maximum bid from the third advertiser comprises a highest bid received from multiple third party bidders.

16. The system of claim 11, wherein the second market notifies the first market when redirecting an impression back to the first market.

17. The system of claim 11, wherein the second market notifies the first market using a pixel or server side message.

18. The system according to claim 11, wherein said computing system is a server.

19. The system according to claim 11, wherein said computing system includes a first computing system and a second computing system, the first computing system conducting the auction in the first market and the second computing system conducting the auction in the second market.

20. A method for conducting an auction for advertising comprising:

conducting, by a computing system, an auction in a first market for an advertising impression in the first market by;

receiving a maximum bid from a first advertiser for placement of a first advertisement in the first market;

determining a maximum bid by a second advertiser for placement of a second advertisement in the first market, the maximum bid from the second advertiser being a next highest bid amount to that of the maximum bid from the first advertiser;

selecting the first advertisement as an auction winner in the auction in the first market;

computing a first market ratio defined by the maximum bid from the second advertiser plus a spread above the maximum bid from the second advertiser divided by the maximum bid from the first advertiser; and

determining a first price to be paid by the first advertiser for placement of the first advertisement in the first market, the first price to be paid being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the first market ratio;

transmitting, from the first computing system via a communications network, the maximum bid from the first advertiser, the maximum bid from the second advertiser, and the spread to a computing system conducting an auction in a second market;

conducting, by the computing system, the auction in the second market for an advertising impression in the second market by;

determining a maximum bid from a third advertiser for placement of a third advertisement in the second market;

selecting the maximum bid from the first advertiser as a an auction winner in the second market;

determining a second price to be paid by the first advertiser for placement of the first advertisement in the second market by;

determining a next highest bid in the second market by comparing the maximum bid from the second advertiser and the maximum bid from the third advertiser;

computing a value based on a fixed percentage of the spread between the highest bid from the first advertiser and the next highest bid on the auction in the second market; and

computing the second price to be paid by the first advertiser based on the computed value; and

notifying, by the computing system, the first market of the second price to be paid in the second market by the first advertiser.

21. The method of claim 20, wherein the second price to be paid by the first advertiser comprises the lesser of (a) the sum of the value and the next highest bid and (b) the maximum bid from the first advertiser.

22. The method of claim 20, wherein the second price to be paid by the first advertiser comprises the value plus a fixed amount.

23. A system for conducting an auction for advertising comprising:

a computing system configured to conduct an auction in a first market for placement of a first advertisement for a first advertising impression in the first market, said computing system being configured to;

receive a maximum bid from a first advertiser for placement of the first advertisement in the first market;

determine a maximum bid from a second advertiser for placement of a second advertisement in the first market, the maximum bid from the second advertiser being a next highest bid amount to that of the maximum bid from the first advertiser;

select the first advertisement as an auction winner of the first auction in the first market;

compute a first market ratio defined by the maximum bid from the second advertiser plus a spread above the maximum bid from the second advertiser divided by the maximum bid from the first advertiser; and

determine a first price to be paid by the first advertiser for placement of the first advertisement in the first market, the first price to be paid being a lower of the maximum bid from the first advertiser and the maximum bid from the first advertiser multiplied by the first market ratio;

said computing system further conducting an auction in a second market, said computing system being further configured to;

receive the maximum bid from the first advertiser, the maximum bid from the second advertiser, and the spread to the second auction in the second market;

conduct the auction for an advertising impression in the second market, by;

determining a maximum bid from a third advertiser for placement of a third advertisement in the second market;

selecting the maximum bid from the first advertiser as a an auction winner of the auction in the second market;

determining a second price to be paid by the first advertiser for placement of the first advertisement in the second market by;

determining a next highest bid between the maximum bid from the second advertiser and the maximum bid from the third advertiser;

computing a value based on a fixed percentage of the spread between the highest bid from the first advertiser and the next highest bid; and

computing the second price to be paid by the first advertiser based on the computed value; and

notify the first market of the second price to be paid in the second market by the first advertiser.

24. The system of claim 23, wherein the second price to be paid by the first advertiser comprises the lesser of (a) the sum of the value and the next highest bid and (b) the maximum bid from the first advertiser.

25. The system of claim 23, wherein the second price to be paid by the first advertiser includes the computed value plus a fixed amount.

26. The system according to claim 23, wherein said computing system is a server.

27. The system according to claim 23, wherein said computing system includes a first computing system and a second computing system, the first computing system conducting the auction in the first market and the second computing system conducting the auction in the second market.