# US 8,788,345 B2 · Method and apparatus for advertising bidding

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- Number: US 8,788,345 B2
- Document ID: US8788345B2
- Status: Granted
- Kind: B2
- Application number: 13/618,827
- Filed: 2012-09-14
- Published: 2013-01-10
- Granted: 2014-07-22
- Earliest claimed: 2003-02-26
- Assignees: Adobe Systems Incorporated
- Applicants: Anil Kamath
- Inventors: Anil Kamath
- Web page: https://patentgrep.com/patent/US8788345B2

## CPC

- G06Q 30/0275: {Auctions}
- G06Q 30/02: Marketing; Price estimation or determination; Fundraising
- G06Q 30/0244: {Optimization}
- G06Q 30/0269: {based on user profile or attribute}
- G06Q 30/08: Auctions
- G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR

## Abstract

Methods, articles, and systems for determining a bidding strategy for on-line query answer set or contextual advertisement positions for marketing options is described herein.

## Claims

### Claim 1

A method for determining a bidding strategy to be used when buying advertising by placing one or more bids for a plurality of marketing options, the method comprising:
facilitating, by a computing device, prior to placement of one or more bids, specification of one or more models that model one or more performance parameters for a plurality of marketing options which are placed at different advertising positions on different web sites;
determining, by the computing device, prior to placing the one or more bids, a bidding strategy, wherein the bidding strategy directs allocation of monetary resources to place the one or more bids among the plurality of marketing options;
wherein determining the bidding strategy comprises solving, by the computing device, an objective function configured to optimize at least one performance parameter for the plurality of marketing options using the specified one or more models; and
after determining the bidding strategy, outputting, by the computing device, the determined bidding strategy for use in placing the one or more bids among the marketing options.

### Claim 2 (depends on 1)

The method of claim 1, wherein facilitating specification of the one or more models comprises, facilitating, by the computing device, specification of a model configured to model, for each of the marketing options, the one or more performance parameters based at least in part on a prediction of demographic information about visitors who will view that marketing option.

### Claim 3 (depends on 1)

The method of claim 1, wherein facilitating specification of one or more models comprises, facilitating, by the computing device, specification of a model configured to model, for each of the marketing options, the one or more performance parameters based at least in part on a prediction of an identity of visitors who will view that marketing option.

### Claim 4 (depends on 3)

The method of claim 3, wherein determining the bidding strategy comprises determining, by the computing device, the bidding strategy with reference to a web page and a visitor in response to the visitor requesting to view the web page.

### Claim 5 (depends on 1)

The method of claim 1, wherein facilitating specification of the one or more models comprises facilitating, by the computing device, specification of a model configured to model the one or more performance parameters based at least in part on the plurality of advertising positions occupied by the marketing options.

### Claim 6 (depends on 5)

The method of claim 5, wherein the plurality of advertising positions occupied by the marketing options are modeled as responsive to monetary resources allocated to the one or more bids placed among the marketing options.

### Claim 7 (depends on 1)

The method of claim 1, wherein the plurality of marketing options comprises a paid listing in an on-line query answer set, and a contextual advertisement.

### Claim 8 (depends on 1)

The method of claim 1, wherein outputting the determined bidding strategy comprises generating, by the computing device, one or more visualizations describing the bidding strategy.

### Claim 9 (depends on 8)

The method of claim 8, further comprising receiving, by the computing device, indications of one or more constraints;
wherein solving the objective function comprises solving, by the computing device, the objective function subject to the one or more constraints; and
wherein generating the one or more visualizations comprises generating, by the computing device, visualizations which show a first objective value determined through a first solution to the objective function solved subject to a first constraint and a second objective value determined through a second solution solved subject to a second constraint.

### Claim 10 (depends on 9)

The method of claim 9, wherein generating the one or more visualizations comprises generating one or more curves showing how objective values change as at least one of the constraints changes.

### Claim 11 (depends on 9)

The method of claim 9, wherein determining the bidding strategy subject to the one or more constraints comprises determining the bidding strategy subject to a constraint requiring a cost limit for a cost-per-conversion measure.

### Claim 12 (depends on 9)

The method of claim 9, wherein determining the bidding strategy subject to the one or more constraints comprises determining the bidding strategy subject to a constraint requiring a cost limit for expenditures on an advertising channel.

### Claim 13

An article of manufacture comprising a tangible, non-transitory computer-readable medium having instructions stored thereon that, responsive to execution by a computing device, cause the computing device to perform operations comprising:
facilitating, prior to placement of one or more bids for buying advertising, specification of one or more models that model one or more performance parameters for a plurality of marketing options which are placed at different advertising positions on different web sites;
wherein facilitating specification of the one or more models comprises facilitating specification of a model configured to model, for each of the marking options, the one or more performance parameters based at least in part on a prediction of demographic or identity information about visitors who will view marketing option;
determining, prior to placing the one or more bids, a bidding strategy wherein the bidding strategy directs allocation of monetary resources to place the one or more bids among the plurality of marketing options; and
after determining the bidding strategy, outputting the determined bidding strategy for use in placing the one or more bids among the marketing options.

### Claim 14 (depends on 13)

The article of claim 13, wherein facilitating specification of the one or more models comprises facilitating specification of a model configured to model the one or more performance parameters based at least in part on the plurality of advertising positions on the multiple web sites.

### Claim 15 (depends on 13)

The article of claim 13, wherein the bidding strategy directs allocation of monetary resources to place the one or more bids among the plurality of marketing options; and
wherein determining the bidding strategy comprises solving an objective function configured to optimize at least one performance parameter for the plurality of marketing options using the specified one or more models.

### Claim 16 (depends on 13)

The article of claim 13, wherein outputting the determined bidding strategy comprises generating one or more visualizations describing the bidding strategy.

### Claim 17 (depends on 15)

The article of claim 15, wherein the operations further comprise receiving indications of one or more constraints; and
wherein solving the objective function comprises solving the objective function subject to the one or more constraints; and
wherein generating the one or more visualizations comprises generating visualizations which show a first objective value determined through a first solution to the objective function solved subject to a first constraint and a second objective value determined through a second solution solved subject to a second constraint.

### Claim 18

An apparatus, comprising:
one or more computer processors;
memory, coupled to the one or more computer processors, containing programming instructions, which, when executed on the one or more computer processors, cause the apparatus to:
facilitate, prior to placement of one or more bids for buying advertising, specification of one or more models that model one or more performance parameters for a plurality of marketing options, wherein facilitating specification of one or more models comprises facilitating specification of a model configured to model the one or more performance parameters based at least in part on the plurality of marketing options being placed at a plurality of different advertising positions on different web sites;
determine, prior to placing the one or more bids, a bidding strategy wherein the bidding strategy directs allocation of monetary resources to place the one or more bids among the plurality of marketing options; and
after determining the bidding strategy, output the determined bidding strategy for use in placing the one or more bids among the marketing options, wherein the output bidding strategy directs bids to one or more of the marketing options.

### Claim 19 (depends on 18)

The apparatus of claim 18, wherein facilitating specification of the one or more models comprises facilitating specification of a model configured to model, for each of the marketing options, the one or more performance parameters based at least in part on a prediction of demographic or identity information about visitors who will view that marketing option.

### Claim 20 (depends on 18)

The apparatus of claim 18, wherein determining the bidding strategy comprises generating a solution for an objective function configured to optimize at least one performance parameter for the plurality of marketing options using the specified one or more models.

### Claim 21 (depends on 18)

The apparatus of claim 18, wherein outputting the determined bidding strategy comprises generating one or more visualizations describing the bidding strategy.

### Claim 22 (depends on 21)

The apparatus of claim 21, wherein the programming instructions, when executed on the one or more computer processors, further cause the apparatus to receive indications of one or more constraints;
wherein determining the bidding strategy comprises generating one or more solutions to an objective function configured to optimize at least one performance parameter for the plurality of marketing options using the specified one or more models, subject to the one or more constraints; and
wherein generating one or more visualizations comprises generating visualizations which show a first objective value determined through a first solution to the objective function solved subject to a first constraint and a second objective value determined through a second solution solved subject to a second constraint.

### Claim 23 (depends on 5)

The method of claim 5, wherein:
facilitating specification of the model comprises facilitating, by the computing device, specification of a model configured to model the one or more performance parameters based at least in part on a plurality of audiences of the different web sites; and
wherein the output bidding strategy directs bids to marketing options which result in different numbers of impressions of the advertising to different sizes of audiences of the different websites.

### Claim 24 (depends on 1)

The method of claim 1, wherein the objective function is configured to maximize, for one or more of the plurality of marketing options, an amount of traffic for a given budget.

### Claim 25 (depends on 1)

The method of claim 1, wherein the objective function is configured to minimize, for one or more of the plurality of marketing options, the cost to generate traffic from a targeted group of visitors.