Method and apparatus for optimizing long term revenues in online auctions
AssigneeNetseer, Inc.
InventorsSudhir K. SINGH, Vwani P. Roychowdhury, Behnam A. Rezaei
Life of this patent
Estimating the term…
Abstract
A method and apparatus for optimizing long-term revenues in online auctions of distinguishable units of an item. For example, the item might be a specific keyword in sponsored search where the distinguishable units could be different slots for putting ads. The system can estimate parameters such as relevance and value by using a notion of fairness and can optimize the revenue by effecting the users' incentives and by improving the bidding language. In general, the method and the system can also be used for equivalent offline auctions.
Claims32
A method for auctioning an item having a plurality of distinct units to a plurality of bidders, each of the plurality of distinct units having at least one different quality, the method comprising:
- a. Designating at least one of the plurality of distinct units as fair slots;
- and
- b. Determining a subset of the plurality of bidders who qualify for the fair slots (qualified bidders) using a qualifying rule.
A method for optimizing long term revenue in a system for auctioning of a plurality of slots to a plurality of bidders by effecting user incentives, the method comprising:
- a. Receiving a plurality of bids for the plurality of slots from the plurality of bidders;
- b. Ranking the plurality of bidders by relevance and choosing a plurality of top bidders;
- c. Assigning at least some of the plurality of slots to the plurality of top bidders using an allocation rule;
- d. Charging the plurality of top bidders who have been assigned at least some of the plurality of slots using a pricing scheme;
- e. Providing the assigned slots to the plurality of top bidders.
A method for optimizing long term revenue in a system for auctioning of a plurality of slots to a plurality of bidders by improving a bidding language, the method comprising designating at least one slot of the plurality of slots as express slots, wherein bidders are allowed to express allocation level preferences with respect to the express slots, the allocation level preferences comprising a list of excluded bidders for each bidder that the bidder does not desire to appear in the express slots.
A method for enabling payment level preferences of bidders in an auction of plurality of slots to a plurality of bidders, the method comprising:
- a. Receiving from each bidder bid information, the bid information comprising an amount the bidder wants to pay per impression, the extra amount the bidder wants to pay if the bidder gets a click and an extra amount the bidder is willing to pay if the bidder gets a conversion;
- b. Using a qualifying rule to identify bidders who will actually participate;
- c. Using an allocation rule to assign the plurality of slots to the participating bidders;
- and
- d. Using a pricing scheme to determine payments from the participating bidders.
A method for estimating a relevance score of a new bidder in auctioning of a plurality of advertisement slots to a plurality of bidders, the method comprising:
- a. Receiving a plurality of bids for the plurality of advertisement slots from the plurality of bidders;
- b. Ranking the bidders using a product of respective bids and respective relevances (RBR), wherein the new bidder is assigned an initial relevance such that the new bidder obtains an advertisement slot without causing any loss in an expected revenue of an auctioneer with respect to that coming from other bidders in absence of the new bidder;
- and
- c. Estimating a true relevance of the new bidder proportionally to a number of activations of an advertisement of the bidder.
Dependencies are inferred from the claim text.