Real-time bidding

A computer program product comprising instructions which, when the program is executed by a computer, cause the computer to carry out steps of:

• (a) receiving historical data on the winning bids of previous auctions and also the losing bids of previous auctions and estimating the likely win price for a future auction,
• (b) receiving data on a maximum bid for winning a future auction and the estimated win price from the estimator, and causing the hardware resource to be employed in entering the future auction only when a budget is not less than the estimated win price,
• (c) creating a set of training data from the historical data on the winning bids and the losing bids, calculating an overall loss function based on the set, and calculating first and second order derivatives of the overall loss function to generate a win price model,
• (d) using the data that is most recent to create an updated training data set,
• (e) tuning the updated win price model using a number M of boosting iterations of training, calculating the win price model, creating the updated training data set, and calculating the updated win price model, and
• (f) using the updated training data set to generate an updated win price model, wherein an early stopping mechanism stops learning so that M equals approximately 25, wherein M is greater than or equal to 1, and wherein the computer carries out a further step of calculating a likelihood function of historical wins and a likelihood function of historical losses and combining these functions to create the overall loss function.

A data processing apparatus for minimizing usage of computer hardware resources in an automated real-time auction, comprising a machine learning estimator configured to calculate a likelihood function of historical wins, the machine learning estimator further configured to calculate a likelihood function of historical losses, the machine learning estimator further configured to carry out steps of:

• (a) receiving historical data on the winning bids of previous auctions and also the losing bids of previous auctions and estimating the likely win price for a future auction,
• (b) receiving data on a maximum bid for winning a future auction and the estimated win price from the estimator, and causing the hardware resource to be employed in entering the future auction only when a budget is not less than the estimated win price,
• (c) creating a set of training data from the historical data on the winning bids and the losing bids, calculating an overall loss function based on the set, and calculating first and second order derivatives of the overall loss function to generate a win price model,
• (d) using the data that is most recent to create an updated training data set, and
• (e) using the updated training data set to generate an updated win price model, wherein the computer carries out a further step of calculating a likelihood function of historical wins and a likelihood function of historical losses and combining these functions to create the overall loss function, and
• (f) receiving a profit margin goal which is used to adjust the estimated win price to ensure that auctions are only won with a sufficient profit margin.

A data processing apparatus for minimizing usage of computer hardware resources in an automated real-time auction, comprising a machine learning estimator configured to calculate a likelihood function of historical wins, the machine learning estimator further configured to calculate a likelihood function of historical losses, the machine learning estimator further configured to carry out steps of:

• (a) receiving historical data on the winning bids of previous auctions and also the losing bids of previous auctions and estimating the likely win price for a future auction,
• (b) receiving data on a maximum bid for winning a future auction and the estimated win price from the estimator, and causing the hardware resource to be employed in entering the future auction only when a budget is not less than the estimated win price,
• (c) creating a set of training data from the historical data on the winning bids and the losing bids, calculating an overall loss function based on the set, and calculating first and second order derivatives of the overall loss function to generate a win price model,
• (d) using the data that is most recent to create an updated training data set,
• (e) tuning the updated win price model using a number M of boosting iterations of training, calculating the win price model, creating the updated training data set, and calculating the updated win price model, and
• (f) using the updated training data set to generate an updated win price model, wherein an early stopping mechanism stops learning so that M equals approximately 25, wherein M is greater than or equal to 1, and wherein the computer carries out a further step of calculating a likelihood function of historical wins and a likelihood function of historical losses and combining these functions to create the overall loss function.

A method of minimizing usage of computer hardware resource in an automated real-time auction, comprising the steps of:

• (a) receiving historical data on the winning bids of previous auctions and also the losing bids of previous auctions and estimating the likely win price for a future auction,
• (b) receiving data on a maximum bid for winning a future auction and the estimated win price from the estimator, and causing the hardware resource to be employed in entering the future auction only when a budget is not less than the estimated win price,
• (c) creating a set of training data from the historical data on the winning bids and the losing bids, calculating an overall loss function based on the set, and calculating first and second order derivatives of the overall loss function to generate a win price model,
• (d) using the data that is most recent to create an updated training data set, and
• (e) using the updated training data set to generate an updated win price model, wherein the computer carries out a further step of calculating a likelihood function of historical wins and a likelihood function of historical losses and combining these functions to create the overall loss function, and
• (f) receiving a profit margin goal which is used to adjust the estimated win price to ensure that auctions are only won with a sufficient profit margin.

A method of minimizing usage of computer hardware resource in an automated real-time auction, comprising the steps of:

• (a) receiving historical data on the winning bids of previous auctions and also the losing bids of previous auctions and estimating the likely win price for a future auction,
• (b) receiving data on a maximum bid for winning a future auction and the estimated win price from the estimator, and causing the hardware resource to be employed in entering the future auction only when a budget is not less than the estimated win price,
• (c) creating a set of training data from the historical data on the winning bids and the losing bids, calculating an overall loss function based on the set, and calculating first and second order derivatives of the overall loss function to generate a win price model,
• (d) using the data that is most recent to create an updated training data set,
• (e) tuning the updated win price model using a number M of boosting iterations of training, calculating the win price model, creating the updated training data set, and calculating the updated win price model, and
• (f) using the updated training data set to generate an updated win price model, wherein an early stopping mechanism stops learning so that M equals approximately 25, wherein M is greater than or equal to 1, and wherein the computer carries out a further step of calculating a likelihood function of historical wins and a likelihood function of historical losses and combining these functions to create the overall loss function.