Optimal pricing and advertisement slot allocation
AssigneeGoogle Inc.
InventorRoss Koningstein
Life of this patent
Estimating the term…
Abstract
An allocation subsystem allocates advertisement slots based on cumulative demand of the advertisement slots. The cumulative demand can be based on a softened demand curve for advertisers that have submitted bids for allocation of the advertisement slot. The demand curves can be adjusted to regulate a variance of the advertisers spend rate throughout a budget period.
Claims23
A computer-implemented method, comprising:
- accessing maximum bids for advertisers, the maximum bids being maximum prices that the advertisers agree to pay for allocation of advertisement slots;
- identifying, by a processing system, a cumulative supply;
- for each of a plurality of advertisers, generating, by a processing system, a softened demand curve based on the maximum bid corresponding to the advertiser, the softened demand curve specifying a plurality of pairs of price and demand for the advertiser;
- identifying, by a processing system, a common price at which the cumulative supply satisfies cumulative demand for advertisement slots, the common price being a price at which a page revenue satisfies a page revenue threshold;
- and
- allocating, by a processing system, the advertisement slots to each advertiser based on a portion of the cumulative supply demanded by each advertiser at the common price.
A system, comprising:
- a first data store storing maximum bids for advertisers, the maximum bids being maximum prices that the advertisers agree to pay for allocation of an advertisement slot;
- a second data store storing publisher data specifying advertisement slots for presentation of advertisements;
- and
- an allocation subsystem comprising one or more processors coupled to each of the first data store and the second data store to generate a softened demand curve for the respective advertisers based on the maximum bids corresponding to each of the respective advertisers and allocate to the advertisers a cumulative supply of advertisement slots for a web page, the cumulative supply being based on a cumulative slot performance of the advertisement slots when allocated to the advertisers at a common price at which a cumulative revenue of the one or more advertisement slots is maximized.
A computer-readable medium encoded with a computer program comprising instructions that when executed operate to cause a computer to perform operations including:
- accessing maximum bids for each of a plurality of advertisers, the maximum bids being maximum prices that each of the plurality of advertisers agree to pay for allocation of advertisement slots;
- identifying, by a processing system, a cumulative supply;
- for each advertiser, generating, by a processing system, a softened demand curve based on the maximum bid corresponding to the advertiser, the softened demand curve specifying a plurality of pairs of price and demand for the advertiser;
- identifying, by a processing system, a common price at which the cumulative supply satisfies cumulative demand for advertisement slots, the common price being a price at which a page revenue satisfies a page revenue threshold;
- and
- allocating, by a processing system, the advertisement slots to each advertiser based on a portion of the cumulative supply demanded by each advertiser at the common price.
A computer-implemented method, comprising:
- obtaining maximum bids for advertisers, the maximum bids being maximum prices that the advertisers will pay for allocation of advertisement slots;
- generating, by a processing system, softened demand curves for the advertisers, the softened demand curves specifying pairs of prices and demands for advertisement slots;
- identifying, by a processing system, a common price at which a cumulative demand for advertisement slots equals a cumulative supply of advertisement slots, the cumulative supply of advertisement slots being measured based on performance metrics for advertisements that have been presented in the advertisement slots;
- and
- allocating, by a processing system, the advertisement slots to the advertisers based on a portion of the cumulative supply that is demanded by each advertiser at the common price.
Dependencies are inferred from the claim text.