U.S. patent application number 10/999499 was filed with the patent office on 2006-05-18 for systems and methods for allocating placement of content items on a rendered page based upon bid value.
This patent application is currently assigned to Microsoft Corporation. Invention is credited to Brian Burdick, David M. Chickering, Sachin Dhawan, David E. Heckerman, Raxit Kagalwala, Li Li, Ying Li, Christopher A. Meek, Tarek Najm, Rajeev Prasad, Murali Vajjiravel.
Application Number | 20060106709 10/999499 |
Document ID | / |
Family ID | 36263190 |
Filed Date | 2006-05-18 |
United States Patent
Application |
20060106709 |
Kind Code |
A1 |
Chickering; David M. ; et
al. |
May 18, 2006 |
Systems and methods for allocating placement of content items on a
rendered page based upon bid value
Abstract
Systems and methods for determining the value of bids placed by
content providers for placement positions on a page, e.g., a web
page, rendered according to a given context, for instance, the
search results listing for a particular query initiated on a search
engine web site, are provided. Additionally, systems and methods
are provided for determining placement of content items, e.g.,
advertisements and/or images, on a rendered page relative to other
content items on the page based upon bid value.
Inventors: |
Chickering; David M.;
(Bellevue, WA) ; Meek; Christopher A.; (Kirkland,
WA) ; Heckerman; David E.; (Bellevue, WA) ;
Burdick; Brian; (Bellevue, WA) ; Li; Li;
(Issaquah, WA) ; Vajjiravel; Murali; (Sammamish,
WA) ; Li; Ying; (Bellevue, WA) ; Prasad;
Rajeev; (Kirkland, WA) ; Kagalwala; Raxit;
(Issaquah, WA) ; Najm; Tarek; (Kirkland, WA)
; Dhawan; Sachin; (Redmond, WA) |
Correspondence
Address: |
SHOOK, HARDY & BACON L.L.P.;(c/o MICROSOFT CORPORTATION)
2555 GRAND BOULEVARD
KANSAS CITY
MO
64108-2613
US
|
Assignee: |
Microsoft Corporation
Redmond
WA
|
Family ID: |
36263190 |
Appl. No.: |
10/999499 |
Filed: |
November 30, 2004 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
10977824 |
Oct 29, 2004 |
|
|
|
10999499 |
Nov 30, 2004 |
|
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Current U.S.
Class: |
705/37 |
Current CPC
Class: |
G06Q 30/02 20130101;
G06Q 30/0256 20130101; G06Q 30/0247 20130101; G06Q 40/04 20130101;
G06Q 30/08 20130101; G06Q 30/0601 20130101; G06Q 30/0241
20130101 |
Class at
Publication: |
705/037 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A computer-implemented method for allocating placement of
content items based upon bid value, the content items to be placed
on a page rendered according to a given context, comprising:
receiving a plurality of bids for a particular placement position
on the page, each bid being associated with a content item; and
determining an expected performance of each particular content item
relative to all content items for which a bid was received.
2. The computer-implemented method of claim 1, further comprising
determining a bid value for each of the plurality of bids.
3. The computer-implemented method of claim 2, wherein determining
the expected performance of each particular content item relative
to the all content items for which a bid was received comprises
determining an expected performance of each particular content item
based upon the bid value of the bid associated therewith relative
to the bid value of the bids associated with all content items for
which a bid was received.
4. The computer-implemented method of claim 3, wherein determining
the expected performance of each particular content item relative
to all content items based upon the bid value of the bid associated
therewith relative to the bid value of the bids associated with all
content items for which a bid was received comprises dividing the
bid value of the bid associated with the particular content item by
a sum of the bid values of the bids associated with all content
items for which a bid was received.
5. The computer-implemented method of claim 4, further comprising
skewing the expected performance of each particular content item
relative to all content items for which a bid was received in favor
of at least one relatively higher performing content item.
6. The computer-implemented method of claim 5, wherein skewing the
expected performance of each particular content item relative to
all content items for which a bid was received in favor of at least
one higher performing content item comprises dividing the bid value
of the bid associated with the particular content item raised to a
particular power by the sum of the bid values of the bids
associated with all content items for which a bid was received
raised to the particular power.
7. The computer-implemented method of claim 1, further comprising
randomly allocating placement of each of the plurality of content
items in the particular placement position on the page based upon
the relative expected performance thereof.
8. The computer-implemented method of claim 7, further comprising
displaying each of the plurality of content items in the particular
placement position on the page in accordance with its randomly
allocated placement.
9. The computer-implemented method of claim 1, wherein receiving a
plurality of bids for a particular placement position on the page
comprises receiving at least one of the plurality of bids through
an auction.
10. The computer-implemented method of claim 1, wherein the given
context is determined based upon a search query.
11. A computer programmed to perform the steps recited in claim
1.
12. A computer-readable medium having computer-executable
instructions embodied thereon for presenting a user interface on a
display device, the user interface for allocating the placement of
content items based upon bid value, the content items to be placed
on a page rendered according to a given context, comprising: code
for receiving a plurality of bids for a particular placement
position on the page, each bid being associated with a content
item; and code for determining an expected performance of each
particular content item relative to all content items for which a
bid was received.
13. The computer-readable medium of claim 12, further comprising
code for determining a bid value for each of the plurality of
bids.
14. The computer-readable medium of claim 13, wherein the code for
determining the expected performance of each particular content
item relative to all content items for which a bid was received
comprises code for determining an expected performance of each
particular content item based upon the bid value of the bid
associated therewith relative to the bid values of the bids
associated with all content items for which a bid was received.
15. The computer-readable medium of claim 14, wherein the code for
determining the expected performance of each particular content
item relative to all content items based upon the bid value of the
bid associated therewith relative to the bid values of the bids
associated with all content items for which a bid was received is
capable of dividing the bid value of the bid associated with the
particular content item by a sum of the bid values of the bids
associated with all content items for which a bid was received.
16. The computer-readable medium of claim 15, further comprising
code for skewing the expected performance of each particular
content item relative to all content items for which a bid was
received in favor of at least one relatively higher performing
content item.
17. The computer-readable medium of claim 16, wherein the code for
skewing the expected performance of each particular content item
relative to all content items for which a bid was received in favor
of at least one relatively higher performing content item is
capable of dividing the bid value of the bid associated with the
particular content item raised to a particular power by the sum of
the bid values of the bids associated with all content items for
which a bid was received raised to the particular power.
18. The computer-readable medium of claim 12, further comprising
code for randomly allocating placement of each of the plurality of
content items in the particular placement position on the page
based upon the relative expected performance thereof.
19. The computer-readable medium of claim 18, further comprising
code for displaying each of the plurality of content items in the
particular placement position on the page in accordance with its
randomly allocated placement.
20. A computer-implemented method for determining a bid value for a
content item to be placed on a page rendered according to a given
context, comprising: receiving a base bid associated with the
content item; determining whether base bid adjustment is desired;
and if base bid adjustment is not desired, determining the bid
value for the content item based upon the base bid.
21. The computer-implemented method of claim 20, wherein if base
bid adjustment is desired, the method further comprises determining
one or more incremental values by which the base bid is to be
adjusted, each incremental value being associated with a targeting
attribute.
22. The method of claim 21, wherein the targeting attribute is
selected from the group consisting of a location of a user, a day
of the week, a time of the day, a gender of the user, and a
particular placement position on the page.
23. The computer-implemented method of claim 21, further comprising
determining whether the targeting attribute associated with at
least one of the one or more incremental values is present.
24. The computer-implemented method of claim 23, wherein if the
targeting attribute associated with at least one of the one or more
incremental values is not present, the method further comprises
determining the bid value for the content item based upon the base
bid.
25. The computer-implemented method of claim 23, wherein if the
targeting attribute associated with at least one of the one or more
incremental values is present, the method further comprises
determining the bid value for the content item based upon the base
bid adjusted by the one or more incremental values for which the
associated targeting attribute is present.
26. The computer-implemented method of claim 20, wherein receiving
a bid associated with a content item comprises receiving the bid
through an auction.
27. The computer-implemented method of claim 20, wherein the given
context is determined based upon a search query.
28. A computer-readable medium having computer-executable
instructions embodied thereon for presenting a user interface on a
display device, the user interface for determining a bid value for
a content item to be placed on a page rendered according to a given
context, comprising: code for receiving a base bid associated with
the content item; code for determining whether base bid adjustment
is desired; and if base bid adjustment is not desired, code for
determining the bid value for the content item based upon the base
bid.
29. The computer-readable medium of claim 28, wherein if base bid
adjustment is desired, the computer-readable medium further
comprises code for determining one or more incremental values by
which the base bid is capable of being adjusted, each incremental
value being associated with a targeting attribute.
30. The computer-readable medium of claim 29, further comprising
code for determining whether the targeting attribute associated
with at least one of the one or more incremental values is
present.
31. The computer-readable medium of claim 30, wherein if the
targeting attribute associated with at least one of the one or more
incremental values is not present, the computer-readable medium
further comprises code for determining the bid value for the
content item based upon the base bid.
32. The computer-readable medium of claim 30, wherein if the
targeting attribute associated with at least one of the one or more
incremental values is present, the computer-readable medium further
comprises code for determining the bid value for the content item
based upon the base bid adjusted by the one or more incremental
values for which the associated targeting attribute is present.
33. A user interface embodied on at least one computer-readable
medium, the user interface for determining the bid value for a
content item to be placed on a page rendered according to a given
context, comprising: a base bid display area configured to display
a base bid, the base bid being associated with the content item;
and a targeting attribute selection area configured to display one
or more selectable targeting attribute links based upon which the
base bid is capable of being adjusted.
34. The user interface of claim 33, wherein the targeting attribute
selection area is configured to display one or more of a location
of a user, a day of the week, a time of the day, a gender of a
user, and a particular placement position on the page.
35. The user interface of claim 33, further comprising a search
phrase display area configured to receive input indicative of at
least one search phrase on which a search query is to be
performed.
36. The user interface of claim 33, further comprising an attribute
option display area configured to display at least one attribute
option within each targeting attribute upon which the base bid is
capable of being adjusted.
37. The user interface of claim 36, whereby following any of the
plurality of selectable targeting attribute links allows a user to
select or input at least one targeting attribute in the attribute
option display area.
38. The user interface of claim 37, further comprising an pricing
increment display area configured to display a pricing increment to
be associated with at least one attribute option within each
targeting attribute upon which the base bid is capable of being
adjusted.
39. The user interface of claim 38, wherein if the user selects or
inputs at least one targeting attribute in the attribute option
display area, the pricing increment to be associated therewith is
capable of being selected or input in the pricing increment display
area.
40. The user interface of claim 33, wherein the user interface is
viewable on a display device coupled with a computer.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of commonly assigned
application U.S. application Ser. No. 10/977,824, filed on Oct. 29,
2004, entitled "Systems and Methods for Determining Bid Value for
Content Items to be Placed on a Rendered Page", which is hereby
incorporated herein by reference.
STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not applicable.
TECHNICAL FIELD
[0003] The present invention relates to computing environments.
More particularly, the present invention relates to systems and
methods for determining the value of bids placed by content
providers for placement positions on a rendered page, e.g., a web
page. Additionally, the present invention relates to systems and
methods for determining the placement of content items, e.g.,
advertisements and/or images, on a rendered page relative to other
content items on the page.
BACKGROUND OF THE INVENTION
[0004] Searching and choosing products and services through
computer-based search engines has become increasingly prolific in
recent years. As such, content providers, i.e., those companies
and/or individuals desiring content specific to their product(s) or
service(s) to be displayed as a result of a given search engine
query, e.g., advertisers, have begun to understand the value that
placement of content items, e.g., descriptors or advertisements of
their products or services, as a result of a search engine query
can have on their sales.
[0005] For instance, if a user accesses a hosting web site, e.g., a
search engine web site, and appropriately inputs a query for
"Hawaiian hotels", it is the user's desire to have a listing of
hotels in Hawaii displayed as a result of the query. There are,
however, numerous hotels in Hawaii and the order in which
descriptors of these hotels are displayed as a result of the query
can have a significant impact on whether or not the user will
access information associated with a particular hotel, e.g., by
selecting a particular content item or descriptor on the query
results page which links the user to additional information about
the associated hotel. For example, a user is more likely to access
information associated with a hotel that is displayed in one of the
top three positions in a vertical listing of hotel links that is
displayed as a result of the query than to access the information
associated with a hotel that appears at the bottom of the display
list. As such, determining the order in which the various content
items or descriptors appear in the displayed query results listing
has become a task of great interest to search engine web sites and
content providers alike, both of whom would like to maximize their
revenue.
[0006] Typically, search engines permit content providers to bid
for particular words and/or phrases, such words and/or phrases
being referred to herein as "bid terms", as a way for determining
the order in which content items or descriptors which provide links
to the content providers' information will be displayed. Bids are
typically made as cost-per-click (CPC) commitments. That is, the
content provider bids a dollar amount it is willing to pay each
time a user selects or clicks on a displayed content item (e.g., an
advertisement or image) as a result of the search engine query and
thus accesses the information associated therewith.
[0007] One method that search engines may use to determine
placement of different content descriptors or advertisements is to
simply rank by the CPC bid and give the best or most prominent
placement to the content provider bidding the highest amount. For
instance, Hotel A may "bid" or agree to pay the search engine $1.00
for each user that accesses its information as a result of
appearing in the search results of a given query while Hotel B may
"bid" or agree to pay the search engine $1.50 for each user that
accesses its information upon appearing in the query results. In
this instance, Hotel B would "win" the bid and, accordingly, its
content descriptor would be placed in a more prominent position on
the web page on which the results of a search initiated by a query
that exactly or partially matches the bid terms are displayed. For
instance, a descriptor of Hotel B may be displayed in the first
position of a plurality of vertically aligned content item
positions that are displayed as a result of the query.
[0008] One drawback to this approach, however, is that it does not
take into account the probability that a user will access the
information associated with the advertisement (or other content)
and, accordingly, all of the risk resides with the search engine.
For instance, in an extreme example, a content provider may place
an inordinately large bid for an advertisement that has a
click-through-rate (CTR) of zero. Such scenario would result in the
advertisement being placed prominently on the web page as the
result of an appropriate query with no charge to the content
provider and, thus, no profit to the search engine.
[0009] Another method that search engines may use to determine the
placement of content items as the result of a particular query is
to take the product of the content-provider's CPC bid and the
probability that a user will access the information associated with
the advertisement (or other content item) and provide the most
prominent placement to the content provider having the highest
product. In this way, the search engine may minimize its risk with
respect to the above-described scenario wherein click-through
probability was not taken into account and, accordingly, can
attempt to maximize its expected profit. However, the probability
that a user will access the information associated with a
particular content item or descriptor may be difficult to
determine, particularly when the content provider lacks a history
with the search engine that can be empirically evaluated.
[0010] Additionally, in either of the above-described placement
scenarios, content providers are unable to view the bids that are
being placed by their competitors. As such, the only way that they
can determine how their bids compare to their competitors is by
examining the position they are awarded on the search engine web
site relative to other content providers as a result of an
appropriate query.
[0011] Accordingly, a method for determining relative placement of
content items as the result of a search engine query wherein risk
to the search engine may be minimized while its profit may be
maximized would be desirable. Further, it would be advantageous if
the relative placement of content items could be altered as the
search engine developed a history with the content providers that
is capable of being empirically evaluated. Additionally, a system
and method for permitting providers to view information regarding
their bids relative to their competitors prior to the ultimate
placement being determined would be advantageous.
BRIEF SUMMARY OF THE INVENTION
[0012] The present invention relates to systems and method for
determining the placement of content items or descriptors, e.g.,
advertisements and/or images, on a rendered page (e.g., a web page)
relative to other content items on the page, such systems and
methods being based upon bid value. Accordingly, in one aspect, the
present invention is directed to a computer-implemented method for
determining bid values for content to be placed on a rendered page
according to a given context, e.g., the search results listing for
a particular query initiated on a search engine web site. The
method includes receiving a plurality of bids each associated with
a content item, at least one of the plurality of bids being based
upon a pricing model that is different from a pricing model upon
which at least one other of the plurality of bids is based, and
determining a bid value for each of the plurality of bids. For
example, contemplate a scenario wherein two bids are received. In
one scenario, each of the bids may be based upon a single pricing
model, the pricing model for the first bid being different from the
pricing model of the second bid. In another example, the first bid
may be based upon a combination of more than one pricing model
while the second bid may be based upon a single pricing model,
whether the same as one of the pricing models on which the first
bid is based or different therefrom.
[0013] In one pricing models, i.e., a cost-per-click (CPC) pricing
model, a bid value may be determined as a CPC bid multiplied by the
click-through rate (CTR) of a content item (e.g., an advertisement
or image). In another aspect, the present invention is directed to
a computer-implemented method for estimating CTR for content items
to be placed on a page (e.g., a web page) rendered in accordance
with a given context, for instance, the search results for a
particular query initiated on a search engine web site, the
estimate being based, in part, upon observed data.
[0014] In yet another aspect, the present invention is directed to
a computer-implemented method for determining relative placement of
content items based upon bid value, the content items to be placed
on a page (e.g., a web page) rendered according to a given context.
The method includes receiving a plurality of bids, each associated
with a content item, and determining relative placement of the
content items on the page according to Vickrey-like or modified
Vickrey-like auction principles.
[0015] In another embodiment, the present invention is directed to
a computer-implemented method for introducing randomness into the
relative placement of content items based upon bid value, the
content items to be placed on a page (e.g., a web page) rendered
according to a given context. In one embodiment of the present
invention, randomness is introduced by permitting each content
provider placing a bid on a particular placement position on the
rendered page to have its content item allocated to that particular
placement position at a frequency proportional to the expected
performance of its content item relative to the expected
performance of the content items of all content providers placing
bids for the same position.
[0016] In still another embodiment, the present invention is
directed to a computer-implemented method for determining bid
values based upon one or more targeting attributes for which a
bidder (e.g., a content provider) may desire to place an
incrementally different bid. The method permits a bidder to
allocate a "base bid" for a basic good and then incrementally
adjust the base bid for each attribute that it perceives as being
of increased or decreased value. Subsequently, at the time an
auction for the good is run, the total for each bidder's base bid
and all of the incremental values which hold true regarding the
good's attributes may be summed and a bid value determined.
[0017] In another embodiment, the present invention is directed to
a computer-implemented method for determining the relative
placement of content items of varying shapes and sizes based upon
bid value, the content items to be placed on a page (e.g., a web
page) rendered according to a given context. The method permits
content providers to bid for mixed or bundled content items
positions if, e.g., the content item desired to be placed on the
rendered page does not fit within the parameters of a single
defined content item position.
[0018] In yet another embodiment, the present invention is directed
to a computer-implemented method for estimating the relative
placement position of a particular content item based upon a
proposed bid and displaying such position estimate to a content
provider. Further, the present invention is directed to a
computer-implemented method for estimating the value a content
provider would have to bid to have a high likelihood of having its
content item placed in a desired content item position and
displaying the bid value/pricing estimate to the content
provider.
BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWING
[0019] The present invention is described in detail below with
reference to the attached drawing figures, wherein:
[0020] FIG. 1 is a block diagram of an exemplary computing
environment suitable for use in implementing the present
invention;
[0021] FIG. 2 is a flow diagram showing a computer-implemented
method for determining bid values for content items (e.g.,
advertisements or images) in accordance with an embodiment of the
present invention;
[0022] FIGS. 3A and 3B are flow diagrams showing
computer-implemented methods for normalizing and estimating,
respectively, click-through-rates (CTR) in accordance with
embodiments of the present invention;
[0023] FIG. 4 is a flow diagram showing a computer-implemented
method for using Vickrey-like auction principles to determine
relative placement of content items on a rendered page in
accordance with an embodiment of the present invention;
[0024] FIG. 5 is a flow diagram showing a computer-implemented
method for determining the price a winning bidder must pay for
being awarded an item using Vickrey-like auction principles in
accordance with an embodiment of the present invention;
[0025] FIG. 6 is a flow diagram showing a computer-implemented
method for introducing randomness into the relative placement
allocation of content items on a rendered page in accordance with
an embodiment of the present invention;
[0026] FIG. 7 is a flow diagram showing a computer-implemented
method for determining bid values based upon one or more targeting
attributes in accordance with an embodiment of the present
invention;
[0027] FIG. 8A is an illustrative screen display of an exemplary
user interface (UI) wherein a search phrase (or bid term) and base
bid may be indicated and displayed;
[0028] FIG. 8B is an illustrative screen display of an exemplary UI
wherein targeting based upon user location may be indicated and
displayed;
[0029] FIG. 8C is an illustrative screen display of an exemplary UI
wherein targeting based upon the day of the week on which a search
is being conducted may be indicated and displayed;
[0030] FIG. 8D is an illustrative screen display of an exemplary UI
wherein targeting based upon the time of day on which a search is
being conducted may be indicated and displayed;
[0031] FIG. 8E is an illustrative screen display of an exemplary UI
wherein targeting based upon the awarded placement position may be
indicated and displayed;
[0032] FIG. 9 is a flow diagram showing a computer-implemented
method for determining relative placement of content items of
varying shapes and/or sizes in accordance with an embodiment of the
present invention;
[0033] FIG. 10 is a schematic diagram showing an example in which a
mixed or bundled auction methodology may be implemented in
accordance with an embodiment of the present invention;
[0034] FIG. 11 is a flow diagram showing a computer-implemented
method for estimating the position on a rendered page where a
content item is likely to appear in accordance with an embodiment
of the present invention;
[0035] FIG. 12 is an illustrative screen display of an exemplary
user interface (UI) wherein a base bid may be entered or selected
by a bidder and displayed in accordance with an embodiment of the
present invention;
[0036] FIG. 13 is an illustrative screen display of an exemplary
user interface (UI) having an expanded advanced price calculator
options area relative to the screen display of FIG. 12;
[0037] FIG. 14 is a flow diagram showing a computer-implemented
method for determining a position estimate based upon a determined
bid value in accordance with an embodiment of the present
invention;
[0038] FIG. 15 is an illustrative screen display of an exemplary
user interface (UI) wherein desired position and frequency
information may be entered or selected by a bidder and displayed in
accordance with an embodiment of the present invention;
[0039] FIG. 16 is an illustrative screen display of an exemplary
user interface (UI) having an expanded advanced price calculator
options area relative to the screen display of FIG. 15;
[0040] FIG. 17 is a flow diagram showing a computer-implemented
method for estimating the value a content provider would have to
bid to have a high likelihood of having its content item placed in
a desired content item position in accordance with an embodiment of
the present invention;
[0041] FIG. 18 is a flow diagram showing a computer-implemented
method for determining a bid value/pricing estimate based upon a
desired content item position and frequency in accordance with an
embodiment of the present invention; and
[0042] FIG. 19 is a flow diagram showing a computer-implemented
method for selecting content items to be placed on a rendered page,
the content items having varying shapes and/or sizes, in accordance
with an embodiment of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0043] The present invention provides systems and methods for
determining the placement of content items or descriptors, e.g.,
advertisements and/or images, on a rendered page (e.g., a web page)
relative to other content items on the page. Additionally, the
present invention provides systems and methods for determining
relative placement of content items on a rendered page based upon
bid value, the bid values being determined based upon a plurality
of pricing models. The present invention further provides systems
and methods for estimating click-through-rates for content items to
be placed on a rendered page based, in part, upon observed data.
Still further, the present invention provides systems and methods
for introducing randomness into the relative placement of content
items based upon bid value. Additionally, the present invention
provides systems and methods for determining bid values based upon
one or more targeting attributes for which a bidder may desire to
place an incrementally different bid. Further, the present
invention provides systems and methods for determining the relative
placement of content items of varying shapes and sizes based upon
bid value. The present invention further provides systems and
methods for estimating the relative placement position of a
particular content item based upon a proposed bid and displaying
such position estimate to a content provider. Additionally, the
present invention provides systems and methods for estimating the
value a content provider would have to bid to have a high
likelihood of having its content item placed in a desired content
item position and displaying the bid value/pricing estimate to the
content provider.
[0044] Having briefly described an overview of various embodiments
of the present invention, an exemplary operating environment for
the present invention is described below.
Exemplary Operating Environment
[0045] Referring to the drawings in general and initially to FIG. 1
in particular, wherein like reference numerals identify like
components in the various figures, an exemplary operating
environment for implementing the present invention is shown and
designated generally as computing system environment 100. The
computing system environment 100 is only one example of a suitable
computing environment and is not intended to suggest any limitation
as to the scope of use or functionality of the invention. Neither
should the computing environment 100 be interpreted as having any
dependency or requirement relating to any one or combination of
components illustrated in the exemplary operating environment
100.
[0046] The invention is operational with numerous other general
purpose or special purpose computing system environments or
configurations. Examples of well known computing systems,
environments, and/or configurations that may be suitable for use
with the invention include, but are not limited to, personal
computers, server computers, hand-held or laptop devices,
multiprocessor systems, microprocessor-based systems, set top
boxes, programmable consumer electronics, network PCs,
minicomputers, mainframe computers, distributed computing
environments that include any of the above systems or devices, and
the like.
[0047] The invention may be described in the general context of
computer-executable instructions, such as program modules, being
executed by a computer. Generally, program modules include
routines, programs, objects, components, data structures, etc.,
that perform particular tasks or implement particular abstract data
types. The invention may also be practiced in distributed computing
environments where tasks are performed by remote processing devices
that are linked through a communications network. In a distributed
computing environment, program modules may be located in both local
and remote computer storage media including memory storage
devices.
[0048] With reference to FIG. 1, an exemplary system for
implementing the present invention includes a general purpose
computing device in the form of a computer 110. Components of
computer 110 may include, but are not limited to, a processing unit
120, a system memory 130, and a system bus 121 that couples various
system components including the system memory to the processing
unit 120. The system bus 121 may be any of several types of bus
structures including a memory bus or memory controller, a
peripheral bus, and a local bus using any of a variety of bus
architectures. By way of example, and not limitation, such
architectures include Industry Standard Architecture (ISA) bus,
Micro Channel Architecture (MCA) bus, Enhanced ISA (EISA) bus,
Video Electronics Standards Association (VESA) local bus, and
Peripheral Component Interconnect (PCI) bus also known as Mezzanine
bus.
[0049] Computer 110 typically includes a variety of
computer-readable media. Computer-readable media can be any
available media that can be accessed by computer 110 and includes
both volatile and nonvolatile media, removable and non-removable
media. By way of example, and not limitation, computer readable
media may comprise computer storage media and communication media.
Computer storage media includes both volatile and nonvolatile,
removable and non-removable media implemented in any method or
technology for storage of information such as computer-readable
instructions, data structures, program modules or other data.
Computer storage media includes, but is not limited to, RAM, ROM,
EEPROM, flash memory or other memory technology, CD-ROM, digital
versatile disks (DVD) or other optical disk storage, magnetic
cassettes, magnetic tape, magnetic disk storage or other magnetic
storage devices, or any other medium which can be used to store the
desired information and which can be accessed by computer 110.
Communication media typically embodies computer-readable
instructions, data structures, program modules or other data in a
modulated data signal such as a carrier wave or other transport
mechanism and includes any information delivery media. The term
"modulated data signal" means a signal that has one or more of its
characteristics set or changed in such a manner as to encode
information in the signal. By way of example, and not limitation,
communication media includes wired media such as a wired network or
direct-wired connection, and wireless media such as acoustic, RF,
infrared and other wireless media. Combinations of any of the above
should also be included within the scope of computer-readable
media.
[0050] The system memory 130 includes computer storage media in the
form of volatile and/or nonvolatile memory such as read only memory
(ROM) 131 and random access memory (RAM) 132. A basic input/output
system (BIOS) 133, containing the basic routines that help to
transfer information between elements within computer 110, such as
during start-up, is typically stored in ROM 131. RAM 132 typically
contains data and/or program modules that are immediately
accessible to and/or presently being operated on by processing unit
120. By way of example, and not limitation, FIG. 1 illustrates
operating system 134, application programs 135, other program
modules 136, and program data 137.
[0051] The computer 110 may also include other
removable/non-removable, volatile/nonvolatile computer storage
media. By way of example only, FIG. 1 illustrates a hard disk drive
141 that reads from or writes to non-removable, nonvolatile
magnetic media, a magnetic disk drive 151 that reads from or writes
to a removable, nonvolatile magnetic disk 152, and an optical disk
drive 155 that reads from or writes to a removable, nonvolatile
optical disk 156 such as a CD ROM or other optical media. Other
removable/non-removable, volatile/nonvolatile computer storage
media that can be used in the exemplary operating environment
include, but are not limited to, magnetic tape cassettes, flash
memory cards, digital versatile disks (DVDs), digital video tape,
solid state RAM, solid state ROM, and the like. The hard disk drive
141 is typically connected to the system bus 121 through a
non-removable memory interface such as interface 140, and magnetic
disk drive 151 and optical disk drive 155 are typically connected
to the system bus 121 by a removable memory interface, such as
interface 150.
[0052] The drives and their associated computer storage media
discussed above and illustrated in FIG. 1, provide storage of
computer-readable instructions, data structures, program modules
and other data for the computer 110. In FIG. 1, for example, hard
disk drive 141 is illustrated as storing operating system 144,
application programs 145, other program modules 146, and program
data 147. Note that these components can either be the same as or
different from operating system 134, application programs 135,
other program modules 136, and program data 137. Operating system
144, application programs 145, other programs 146 and program data
147 are given different numbers herein to illustrate that, at a
minimum, they are different copies. A user may enter commands and
information into the computer 110 through input devices such as a
keyboard 162 and pointing device 161, commonly referred to as a
mouse, trackball or touch pad. Other input devices (not shown) may
include a microphone, joystick, game pad, satellite dish, scanner,
or the like. These and other input devices are often connected to
the processing unit 120 through a user input interface 160 that is
coupled to the system bus, but may be connected by other interface
and bus structures, such as a parallel port, game port or a
universal serial bus (USB). A monitor 191 or other type of display
device is also connected to the system bus 121 via an interface,
such as a video interface 190. In addition to the monitor 191,
computers may also include other peripheral output devices such as
speakers 197 and a printer 196, which may be connected through an
output peripheral interface 195.
[0053] The computer 110 may operate in a networked environment
using logical connections to one or more remote computers, such as
a remote computer 180. The remote computer 180 may be a personal
computer, a server, a router, a network PC, a peer device or other
common network node, and typically includes many or all of the
elements described above relative to the computer 110, although
only a memory storage device 181 has been illustrated in FIG. 1.
The logical connections depicted in FIG. 1 include a local area
network (LAN) 171 and a wide area network (WAN) 173, but may also
include other networks. Such networking environments are
commonplace in offices, enterprise-wide computer networks,
intranets and the Internet.
[0054] When used in a LAN networking environment, the computer 110
is connected to the LAN 171 through a network interface or adapter
170. When used in a WAN networking environment, the computer 110
typically includes a modem 172 or other means for establishing
communications over the WAN 173, such as the Internet. The modem
172, which may be internal or external, may be connected to the
system bus 121 via the network interface 170, or other appropriate
mechanism. In a networked environment, program modules depicted
relative to the computer 110, or portions thereof, may be stored in
a remote memory storage device. By way of example, and not
limitation, FIG. 1 illustrates remote application programs 185 as
residing on memory device 181. It will be appreciated that the
network connections shown are exemplary and other means of
establishing a communications link between the computers may be
used.
[0055] Although many other internal components of the computer 110
are not shown, those of ordinary skill in the art will appreciate
that such components and the interconnection are well known.
Accordingly, additional details concerning the internal
construction of the computer 110 need not be disclosed in
connection with the present invention.
[0056] When the computer 110 is turned on or reset, the BIOS 133,
which is stored in the ROM 131, instructs the processing unit 120
to load the operating system, or necessary portion thereof, from
the hard disk drive 141 into the RAM 132. Once the copied portion
of the operating system, designated as operating system 144, is
loaded into the RAM 132, the processing unit 120 executes the
operating system code and causes the visual elements associated
with the user interface of the operating system 134 to be displayed
on the monitor 191. Typically, when an application program 145 is
opened by a user, the program code and relevant data are read from
the hard disk drive 141 and the necessary portions are copied into
RAM 132, the copied portion represented herein by reference numeral
135.
Method for Determining Bid Values Based Upon a Plurality of Pricing
Models
[0057] The subject matter of the present invention is described
with specificity herein to meet statutory requirements. However,
the description itself is not intended to limit the scope of this
patent. Rather, the inventors have contemplated that the claimed
subject matter might also be embodied in other ways, to include
different steps or combinations of steps similar to the ones
described in this document, in conjunction with other present or
future technologies. Moreover, although the terms "step" and/or
"block" may be used herein to connote different elements of methods
employed, the terms should not be interpreted as implying any
particular order among or between various steps herein disclosed
unless and except when the order of individual steps is explicitly
described.
[0058] As previously mentioned, the present invention relates to
systems and methods for determining the value of bids placed by
content providers for placement positions on a rendered page, e.g.,
a web page. As bid value may be measured in terms of dollars paid
to the hosting web site, e.g., a search engine web site, there are
various different pricing models that can be mixed together in a
principled manner to rank content items according to value.
[0059] One such pricing model is referred to herein as a
"cost-per-impression" pricing model or a CPI model (also referred
to as a "cost-per-thousand" or CPM model). In the CPI pricing
model, a content provider, e.g., an advertiser, pays the search
engine a fixed dollar amount each and every time its content item,
e.g., its advertisement or image, is displayed as the result of an
appropriate search engine query. The advertisers' bids in this
pricing model are equivalent to their value and, accordingly, there
is no uncertainty involved in calculating the bid value.
[0060] A second pricing model is referred to herein as a
"cost-per-click" pricing model or a CPC model. In the CPC model,
the content provider pays the search engine a fixed dollar amount
each time a user accesses the information associated with the
content item displayed as the result of an appropriate search
engine query. That is, as content items typically represent
selectable links to more detailed information about the subject
matter thereof, in the CPC model, the content provider pays the
search engine only when a user selects or clicks on its content
item, thus accessing the associated information. The bid value in
this pricing model is the CPC bid multiplied by the
click-through-rate (CTR) of the content item (e.g., the
advertisement or image). Click-through-rate is an unknown value
and, accordingly, it must be estimated. Various methods for
estimating CTR may be utilized, a number of which are discussed
hereinbelow.
[0061] The uncertainty in this scenario rests on the search engine
because if the content item is displayed in a prominent position as
the result of an appropriate query but no users access the
information associated with the item, the search engine receives no
payment from the content provider.
[0062] A third pricing model is referred to herein as a
"cost-per-sale" pricing model or a CPS model. In the CPS model, the
content provider bids a fixed dollar amount it is willing to pay
the search engine for each sale that results from a user being
shown its content item as the result of an appropriate search
engine query. In this scenario, the search engine receives payment
from the content provider only if a user purchases the product or
service indicated by the content item and not if someone merely
accesses the information associated with the content item but does
not complete the sale. The bid value in this case is the CPS bid
multiplied by the expected probability that showing the
advertisement will result in a sale. The expected sales probability
must be estimated, the ease with which this may be done being based
largely upon the history between the content provider and the
search engine.
[0063] A fourth pricing model is referred to herein as a "revenue
sharing" model. With revenue sharing, the content provider bids a
percentage of the sales price that they are willing to pay to the
search engine if a user buys anything as a result of being shown
the content item in the results of an appropriate search engine
query, whether or not the product or service sold is identical to
the product or service associated with the content item. The bid
value is calculated in this instance as the revenue sharing
percentage bid, e.g., 5%, multiplied by the expected sales price.
There is some tracking involved in the revenue sharing pricing
model, the ease with which such tracking may be done being based
upon the history between the content provider and the search
engine, as well as the breadth of products and/or services offered
by the content provider.
[0064] The above-described pricing models all have one feature in
common: they can be evaluated based upon a dollar figure. That is,
the search engine may determine a bid value for each content
provider which may subsequently be compared with the bid values
determined for competing content providers, regardless of which
pricing model each content provider utilized in formulating its
bid. For instance, if content provider A provides the search engine
with a CPI bid and content provider B provides the search engine
with a CPS bid, the search engine can determine the bid value for
each of the bids received and, thus, appropriately compare the
bids. In this way, the search engine can more adequately maximize
its expected revenue. Additionally, as the search engine's expected
revenue can be estimated and/or determined as a dollar amount,
combinations of pricing models with respect to a single content
provider may also be utilized, as more fully described below.
[0065] With reference to FIG. 2, a flow diagram is illustrated
which shows a computer-implemented method 200 for determining bid
values for content items (e.g., advertisements or images) in
accordance with an embodiment of the present invention. The content
items in method 200 may be placed on a page (e.g., a web page)
rendered according to a given context, for instance, the search
results for a particular query initiated on a search engine web
site. Initially, as shown at block 210, the system receives a
plurality of bids each associated with a content item, at least one
of the plurality of bids being based upon a pricing model that is
different from the pricing model upon which at least one other of
the plurality of bids is based. These bids may be, for instance,
based upon CPI bids, CPC bids, CPS bids, or revenue sharing bids,
each of which was hereinabove described. It will be understood by
those of ordinary skill in the art, however, that bids may be
placed based upon a combination of pricing models and such
combinations are intended to be included in the definition of such
term. For instance, a bidder may place a bid for $0.05 per
impression and $0.10 per occasion that an impression is clicked
through. Such variations are intended to be within the scope of the
present invention.
[0066] Depending upon the type of bid received, the system
subsequently determines a bid value for each bid received, as shown
at block 212. As each of the pricing models excepting the CPI
pricing model includes some type of estimated probability in
determining the bid value, in one embodiment, the system may only
accept CPI bids from a content provider until enough user access
data can be collected to determine a reliable CTR estimate, as more
fully described below. Once a reliable CTR estimate may be
determined, the content provider may "graduate" such that the
system accepts CPC bids from it. Similarly, as more user access
data is collected so that it may more confidently be predicted what
the expected sales rate and/or the expected sales revenue for a
given content provider may be, the content provider may "graduate"
such that the system accepts CPS and/or revenue sharing bids from
the content provider. All such variations are contemplated to be
within the scope of the present invention.
[0067] In another embodiment, the system may accept non-CPI bids
from all content providers but adjust the bid according to risk.
One method for adjusting the bid is to add a "risk penalty" to the
bids placed by content providers with which the search engine has
little or no history. The more uncertain the search engine is about
a CTR or sale probability, the larger the risk penalty. The risk
penalty may be used to compute an effective CTR, which may then be
used in determining expected bid value.
[0068] One risk penalty methodology which may be utilized
determines an effective probability equal to the expected or
estimated probability less an amount proportional to the variance
of the estimate of the probability. The variance of the estimate of
the probability, in turn, may be estimated via one of a set of
standard probability models, e.g., the Dirichlet model, as known to
those of ordinary skill in the art. Note that when no data is
available to estimate the probabilities, the effective probability
can go below zero, in which case a CPC bid may be ignored.
[0069] By way of example only, suppose a content provider desires
to place a CPC bid and that a Beta(1,1) prior is used for the
probability of a user clicking on the content item associated
therewith. After the system evaluates user behavior and determines
c clicks (i.e., c occasions wherein a user accesses the information
associated with the content item) and n non-clicks (i.e., n
occasions wherein a user does not access the information associated
with the content item), the posterior probability of a user
clicking is a Beta(1+c, 1+n) distribution. The expected click rate
(i.e., the expected value of the Beta distribution) is accordingly:
E(rate)=(1+c)/(2+c+n).
[0070] The variance of the click rate (i.e., the variance of the
Beta distribution) is
Var(rate)=(1+c)(1+n)/[(2+c+n).sup.2(3+c+n)].
[0071] The effective click-through rate (CTR) may then be
determined as P.sub.click=E(rate)-k.times.Var(rate)
[0072] for some value of k that determines how risk averse the
content provider is. In practice, a prior may be selected that
adequately reflects CTRs, for example, a Beta prior with small
sample size (e.g., 1) and a mean equal to the overall CTR or sales
rate of the content provider site. The risk-adjusted expected
revenue for a bid and, in turn, the bid value, is the CPC bid price
multiplied by the effective click-through rate, P.sub.click.
[0073] Similarly, an effective click-through to sale, P.sub.sale,
may be determined and utilized for computation of the risk-adjusted
expected revenue for CPS bids.
[0074] It should be noted that the above-described risk adjustment
methodology is intended to be exemplary only. Any number of risk
adjustment methodologies may be utilized, as known to those of
ordinary skill in the art, and all such methodologies are intended
to be within the scope of the present invention. For instance, risk
adjustment could be calculated based upon the probability that the
content provider will default on their payment, or the like.
[0075] In another embodiment, risk may be adjusted based upon a
"risk bonus" to favor those content providers for whom CTRs are not
well known, that is, those content providers with whom the search
engine has limited history. In this instance,
P.sub.click=E(rate)+k.times.Var(rate).
[0076] Both the risk penalty and risk bonus embodiments of the
present invention may be augmented to include a bid floor for the
minimum bid for showing a content item using the expected revenue
in the simple case and using risk adjusted expected revenue in the
second case. Additionally, bid terms may be accepted which include
locality specific terms, including, but not limited to, zip code or
the like, as more fully described below. All such variations are
contemplated to be within the scope hereof.
[0077] Referring back to FIG. 2, once the bid values have been
determined, one or more of the content items associated with the
plurality of bids may be selected based upon the respective
determined bid values, for instance, for placement in a prominent
position on the rendered page. This is shown at block 214.
Typically, the content item having the highest bid value will be
awarded the most prominent position upon display. For instance,
contemplate a scenario wherein the positions available for placing
content items are ordered as pos.sub.1, pos.sub.2, pos.sub.3, . . .
, pos.sub.k, with pos.sub.1 being the top link of a vertical
listing of links on a search engine web page that is displayed as
the result of a particular user query, pos.sub.2 being the second
link, and so on. In this instance, the content item having the
highest bid value may be awarded pos.sub.1.
[0078] Subsequently, the one or more selected content items may be
displayed, as indicated at block 216. Alternatively or in
conjunction, as shown at block 218, a ranking for the content items
associated with the plurality of bids may be determined based upon
the respective determined bid values. The selected content items
may subsequently be displayed according to the determined ranking,
as indicated at block 220.
[0079] Next, as indicated at block 222, the system may receive
information about a user, e.g., demographic and/or gender-related
information and the context may be determined based upon the user
information received. This is indicated at block 224. Systems and
methods for utilizing user information to determine bid value are
more fully described below.
Methods for Estimating Click-Through Rates of Content Items on a
Rendered Page
[0080] As previously discussed, one pricing model under which bid
values may be determined is a cost-per-click pricing model or CPC
pricing model. A bid value under this pricing model may be
determined as the CPC bid multiplied by the click-through-rate
(CTR) of the content item (e.g., the advertisement or image).
Click-through-rate is an unknown value and, accordingly it must be
estimated. As one of ordinary skill in the art will appreciate,
appropriately estimating click-through rate (CTR) is important to
ensure appropriate bid value calculations and, e.g., the resultant
relative content item placement on a rendered page. Accordingly,
the present invention further relates to systems and methods for
estimating CTR for content items to be placed on a page (e.g., a
web page) rendered according to a given context, for instance, the
search results for a particular query initiated on a search engine
web site.
[0081] Certain content item positions on a rendered page (e.g., a
web page) have higher CTRs than other content item positions. For
example, a user is more likely to access the information associated
with a content item that is displayed in one of the top three
positions in a vertical listing of content items (i.e., a user is
more likely to "click-through" on a content item that is displayed
in one of the top three positions in a vertical listing of content
items) than to access the information associated with a content
item that appears at the bottom of the display list. As such, in
order to appropriately compare CPC bids for a content item that may
appear in any one of a plurality of content item positions on the
rendered page, historical CTR data must be adjusted such that the
CTR for a more prominent or desired position is comparable to the
CTR for a less prominent or desired position. Otherwise, content
providers having better placement on the rendered page will be
initially unfairly favored.
[0082] In adjusting or "normalizing" CTR, both the position of the
content item on the rendered page as well as its content item type
(e.g., mainline or sidebar) must be considered. The combination of
these two variables is referred to herein as "context". Referring
now to FIG. 3A, a computer-implemented method for normalizing
click-through-rate such that context may be eliminated as a
variable in CPC bid comparisons is shown and designated generally
as reference numeral 300. Initially, as indicated at block 310, a
particular context may be selected as a reference context (r), the
reference context being associated with a particular content item
position/content item type combination. The selected reference
context need not have the highest CTR of the content items on the
rendered page, however, it is currently preferred that the
reference context be one of the contexts with a high CTR (e.g., a
position 1 side-bar) in order to ensure good CTR estimates.
[0083] Subsequently, as indicated at block 312, the CTR of the
reference context (r) may be determined based upon observed data
(CTR.sub.r). The CTR of each context on the rendered page
(represented herein as a dynamic context (j)) relative to the CTR
of the reference context (i.e., CTR.sub.r) may then be determined
and delineated as R.sub.j. This is indicated at block 314.
[0084] For example, contemplate that it is desired to determine the
CTR of a particular context (i) relative to the reference context
and that the reference context, in this example, has a CTR
represented by CTR.sub.1 and given a value equal to one. R.sub.i
(that is, the relative CTR of particular context (i) relative to
CTR.sub.1) may be represented as CTR.sub.i/CTR.sub.1. Thus, a
content item is one-half as likely to be clicked in particular
context (i) than in the reference context, R.sub.i=1/2. (Note that
R.sub.1 (that is the CTR of the reference context (CTR.sub.1)
relative to the CTR of the reference context (CTR.sub.1) will
always be equal to one.)
[0085] In one embodiment, the range of permitted values for R.sub.i
is [1/100, 20]. That is, if the maximum value is exceeded, then
R.sub.i may be set to be equal to 20. Similarly, if R.sub.i is less
than the minimum value, then it may be set to be equal to 1/100. If
the reference context is selected appropriately (i.e., is selected
as one of the contexts on the rendered page having one of the
highest CTRs), then R.sub.i should not reach values that are very
large and certainly should not approach the maximum value.
[0086] Returning to FIG. 3A, the actual number of impressions of a
particular content item (k) in context (j) that are clicked through
subsequently may be determined based on observed data and
designated as Mk.sub.C=1(j). This is indicated at block 316.
Additionally, as indicated at block 318, the actual number of
impressions of the given content item (k) in context (j) that are
not clicked through may also be determined based upon observed data
and designated as Mk.sub.C=0(j).
[0087] Subsequently, as indicated at block 320, the number of
impressions of the given content item (k) that are clicked through
may be normalized to any context on the rendered page, the
normalized number of impressions be designated as Mk.sub.C=1.
Mk.sub.C=1 may be determined based upon the following formula: Mk C
= 1 = j .times. Mk C = 1 .function. ( j ) R j ##EQU1##
[0088] Next, as indicated at block 322, the number of impressions
of the given content item (k) that are not clicked through may be
normalized to any context on the rendered page, the normalized
number of impressions being designated as Mk.sub.C=0. Mk.sub.C=0
may be determined based upon the following formula: Mk C = 0 = j
.times. Mk C = 0 .function. ( j ) ##EQU2##
[0089] (Note: Mk, the actual number of impressions normalized to
any context on the rendered page, is equal to
Mk.sub.C=0+Mk.sub.C=1.)
[0090] Subsequently, as indicated at block 324, it is determined
whether or not the bid (or bids) for which it is desired that CTR
be normalized are targeted or non-targeted bids. (Methods and
systems for targeting bids based upon various attributes and
attribute options are more fully described hereinbelow.) If it is
determined that the bid for which it is desired that CTR be
normalized is a non-targeted bid, a single CTR estimate for content
item (k) may be determined based upon the following formula: p k
.function. ( click ) = Mk C = 1 Mk C = 1 + Mk C = 0 . ##EQU3## This
is indicated at block 326. Click-through-rate may be stored at
content item level thus enabling optimization of content items for
ranking and display.
[0091] If the bid (or bids) for which it is desired that CTR be
normalized are targeted bids, however, multiple estimates for CTR
may be determined, one CTR for each required combination of
targeting features. This is indicated at block 328. Being able to
adjust CTR by targeting is useful as it makes CTRs based upon
content items having different targeting features comparable. For
instance, a CTR under a broad match query is likely to be lower
than the CTR under an exact match query. If CTR is adjusted, broad
match content providers may potentially be forced to pay higher CPC
because of their lower CTR.
[0092] Determining an estimated CTR for bids based on one or more
targeted features is more complicated than with non-targeted bids
as it requires knowledge of a number of items that are not
necessary for a non-targeting bid. First, the impact of each
targeting feature on the CTR must be known. For instance, for a
given content item, how much more likely is a New York user to
click on it than a Seattle user? Secondly, the adjusted CTR must be
dynamically calculated at run-time according to, in part, the
search user's profile. For example, when it is known that the user
is a New York user, the CTR must be adjusted with the New York
effect at run-time, whereas if the search user is not from New
York, the CTR may be adjusted with the New York effect set to
zero.
[0093] For at least these reasons, an offline model is necessary to
answer the first inquiry (i.e., the impact of each targeting
feature on the CTR) and a real-time formula is necessary to answer
the second inquiry (i.e., the search user profile).
[0094] The offline model makes sure that the impact of every
possible value of the targeting attributes on CTR is known. That
is, it will be known, for instance, that a female user is x% more
likely to click on a particular content item, or a New York user is
y% less likely to click on a content item than a user from any
other demographic. Each possible value of the targeting attributes
is referred to herein as a "feature". Therefore, Location=New York
is a feature, as is Gender=Female.
[0095] Referring now to FIG. 3B, a computer-implemented method for
estimating click-through-rate when one or more bids is a targeted
bid is illustrated. Initially, as indicated at block 330, the
system estimates a CTR for content item that is independent of any
targeted attribute. This estimate is determined by the same formula
as the P.sub.k(Click) under the non-targeting model discussed
hereinabove.
[0096] Subsequently, as indicated at block 332, an attribute a is
determined at the listing level using the following formula: a =
.PI. i .times. p .function. ( A i = default i | click ) p
.function. ( A i = default i | noclick ) ##EQU4##
[0097] wherein default.sub.i is the default value for attribute i,
P(A.sub.i=default.sub.i|click) is the percentage of all impressions
that are clicked through having default.sub.i (including those for
which attribute i is unknown), P(A.sub.i=default.sub.i|noclick) is
the percentage of all impressions that are not clicked through
having the default.sub.i (including those for which attribute i is
unknown), and the product is taken over all attributes that have at
least one targeted value in the results listing.
[0098] Next, as indicated at block 334, a parameter (.lamda..sub.a)
for each possible value a of a targeted attribute A (i.e., a
feature) is determined using the following formula: .lamda. a = p
.function. ( A = a | click ) p .function. ( A = a | noclick )
.times. p .function. ( A = default | noclick ) p .function. ( A =
default | click ) ##EQU5##
[0099] wherein the default value for attribute a is default.sub.a,
P(A=a|click) is the percentage of impressions having attribute A=a
that are clicked through, P(A=a|noclick) is the percentage of all
impressions having attribute A=a that are not clicked through,
P(A=default|click) is the percentage of all impressions having
default.sub.a that are clicked through (including those for which
attribute A is unknown), and P(A=default|noclick) is the percentage
of all impressions having default.sub.a that are not clicked
through (including those for which attribute A is unknown).
[0100] To extract each parameter .lamda..sub.i, contemplate that
feature i corresponds to attribute A having value a. (Note that
there will never be a feature or .lamda. corresponding to the
default value of an attribute.)
[0101] Subsequently, as shown at block 336, the targeted CTR is
determined for content item (k) for each combination of features
using the following formula: p .function. ( Click .times. .times.
on .times. .times. ad .times. .times. k | Features ) = .mu. k
.times. a .times. .times. .PI. i .times. .lamda. i f .times. i 1 +
.mu. k .times. a .times. .times. .PI. i .times. .lamda. i f .times.
i ##EQU6##
[0102] where .mu. k = p k .function. ( click ) 1 - p k .function. (
click ) . ##EQU7## The input feature, f.sub.i, is a binary function
that is equal to one if a given user has the attribute and value
associated with parameter .lamda..sub.i and zero otherwise. The
formula has one parameter .lamda..sub.i for each input feature
f.sub.i.
[0103] Initial values for the offline parameters for both the
targeting and non-targeting models must be determined. In all cases
p(A=i|no click)=P(A=i) and p(A=i|click)=p(A=i) may be initialized.
Thus, all that remains is to find a good estimate for
p.sub.k(click). Using the same initial value for all content items
in the results listing (i.e., p.sub.k(click)=p(click) for all
content items (k)), three cases are considered.
[0104] First, contemplate a scenario wherein content item (k) is
for a new query term. That is, no content providers have previously
bid on the term. In this scenario, p(click) may be set to the
global click rate. Note that a bad estimate in this case is not a
big deal as in all likelihood, there will not be any competition
for this particular query term and, thus, a bid floor will likely
be charged. The only way in which there may be competition for this
particular query term is if two content providers both bid on the
new query term at the same time. In this case, the CTR estimates
will be the same for both content providers and the content
provider providing the highest bid (which will also be the bid
having the highest bid value) will be awarded the position being
auctioned. Additionally, the winning content provider will be
charged the bid provided by the competing content provider in
accordance with Vickrey-type auction principles, as more fully
described below.
[0105] Second, contemplate a scenario wherein the content item is
for an old query term but the content provider is new. In this
case, the median p(click) for the content providers who currently
have content items displayed for the bid term will be used for the
new content provider's estimated CTR.
[0106] Third, contemplate a scenario wherein the content item is
for an old query term but the content provider has content items
running for other query terms as well. This case is similar to the
new content provider scenario, except that instead of using the
median p(click), the relative CTRs for this particular content
provider's other queries will be used to estimate CTR. If the
content provider does better than average on other queries, it will
be assumed that it will do better than average on this query as
well.
[0107] In this scenario, the percentage of other content items for
which this content provider has a p(click) greater than the median
p(click) for the corresponding query term is first determined. If
this percentage, K, is less than 50%, the initial probability will
be set as in the new content provider scenario described
hereinabove. If, however, K is greater than 50%, the initial
probability will be set at the Kth percentile probability of
current content providers. That is, if K=80% and there are 100
content items displayed in the query search results listing, the
p(click) values will be sorted in descending order and the
20.sup.th p(click) will be used. If this p(click) is greater than
the second-highest p(click), however, the estimated CTR will be
re-set to be equal to the second highest. This makes sure that a
content provider never has the highest estimated p(click) until the
system has actually started keeping track.
[0108] A batch updating method may be used to update the offline
parameters for both the targeting and non-targeting models. In
particular, after a data-gathering period, the parameters may be
modified to better reflect the observed fractions in the data. The
update is a function of counts in the observed data. That is,
because p.sub.k(click) is calculated per content item, impressions
that are clicked through that are specific to a particular content
item must be counted.
[0109] Let Mk.sub.C=1 be the number of effective impressions of
content item (k) in the data that are clicked-through impressions
and let Mk.sub.C=0 be the number of effective impressions of
content item (k) in the data that are impressions that are not
clicked through. Let Mk=Mk.sub.C=0+Mk.sub.C=1. Effective counts
rather than actual counts are used to adjust for differences in
click-through-rates for different contexts (i.e., positions and
render types). The specific method for computing effective counts
was described hereinabove.
[0110] The update formula is as follows: p k ' .function. ( click )
= .beta. Mk .times. p k .function. ( click ) + ( 1 - .beta. Mk )
.times. ( Mk C = 1 + q Mk C = 1 + Mk C = 0 + s ) ##EQU8##
[0111] where q and s are constants with q<s (e.g., q=p(click),
the global probability of any content item on the rendered page
being clicked, and s=1). The denominator and numerator of the
second part of the formula add only a small number (l and q) such
that P'.sub.k (click) is not equal to zero.
[0112] Because the conditional probabilities are shared across all
content items in a search results listing, impressions and
click-throughs are counted for the listing without regard to the
content item itself. In this way, p(A=a|click) may be updated.
[0113] Let N be the total number of (actual) impressions of all
content items on the results listing. Let N.sub.c=1 be the number
of impressions in the data that are clicked through, and let
N.sub.c=0 be the number of impressions in the data that are not
clicked through. Similarly, let N.sub.A.sub.i.sub.=j,C=1 be the
number of impressions where attribute i has value j and there is
click through, and let N.sub.A.sub.i.sub.=j,C=0 be the number of
impressions where attribute i has value j and there is no click
through. The parameters subsequently may be updated as follows: p '
.function. ( A i = j | click ) = .gamma. C = 1 N .times. p
.function. ( A i = j | click ) + ( 1 - .gamma. C = 1 N ) .times. (
N A i = j , C = 1 + w ij N C = 1 + x ij ) ##EQU9## and ##EQU9.2## p
' .function. ( A i = j | noclick ) = .gamma. C = 0 N .times. p
.function. ( A i = j | noclick ) + ( 1 - .gamma. C = 0 N ) .times.
( N A i = j , C = 0 + w ij N C = 0 + x ij ) ##EQU9.3##
[0114] where w.sub.ij and x.sub.ij are constants with
w.sub.ij<x.sub.ij (e.g., w.sub.ij=p(A.sub.i=j), the global
probability that attribute i has value j, and x.sub.ij=1.
[0115] In a currently preferred embodiment, .beta.=0.999 and y=0.99
as these values work well for the on-line version of the update
(i.e., when N=1).
Method for Determining Relative Placement of Content Items Using
Vickrey-Type Auction Principles
[0116] The present invention further relates to systems and methods
for determining relative placement of content items based upon bid
value, the content items to be placed on a page (e.g., a web page)
rendered according to a given context, for instance, the results of
a particular query run by a search engine. In one embodiment, the
relative placement of the content items may be determined based
upon bid values according to Vickrey-like auction principles.
Vickrey-like auction principles are well known to those of ordinary
skill in the art and, accordingly, are discussed only briefly
herein. More detailed information about Vickrey-like auctions may
be found in Milgrom, P., Putting Auction Theory to Work (Churchill
Lectures in Economics); (Cambridge University Press; Jan. 12,
2004); ISBN 0521536723, the entirety of which is incorporated by
reference herein.
[0117] In a standard Vickrey-like auction, there are a number of
items available for auction and a number of bidders who desire to
bid on one or more of the items. The bids for each item are
received and the auction items are then allocated to the bidders.
In one embodiment, the present invention relates to applying
Vickrey-like auction principles to determine relative placement of
content items on a rendered page.
[0118] With reference to FIG. 4, a flow diagram is illustrated
which shows a computer-implemented method 400 for using
Vickrey-like auction principles to determine relative placement of
content items on a rendered page in accordance with an embodiment
of the present invention. The content items in method 400 may be
placed on a page (e.g., a web page) rendered according to a given
context, for instance, the search results listing for a particular
query initiated on a search engine web site.
[0119] Initially, as shown at block 410, the system receives a
plurality of bids for a particular item, e.g., a particular content
item position, available for auction, each bid being associated
with a content item. For instance, recall the scenario described
hereinabove wherein a plurality of content providers are bidding
for placement of their content on a rendered page relative to the
content of other content providers, all such content falling within
the given context. The "items" available for auction in this
scenario may be thought of the various positions on the results
page of a particular query run by a search engine. By way of
example only, the positions available to the content providers may
be ordered as pos.sub.1, pos.sub.2, . . . , pos.sub.k, with
pos.sub.1 being the top-most position on the rendered page,
pos.sub.2 being the second position from the top of the rendered
page, and so on. Accordingly, bids may be received from a number of
content providers for each position and, regardless of the pricing
model under which a bid was provided, a bid value may be determined
for each of the bids for each position. This is shown at block
412.
[0120] Subsequently, it may be determined which bidder is to be
awarded the item for which the bids were placed, i.e., the winning
bidder, as indicated at block 414. For instance, the positions on
the page may then be awarded to the content providers such that the
total value is maximized.
[0121] By way of example, suppose there are three positions on a
rendered page to be allocated and five content providers (A, B, C,
D, and E) place bids on the positions. Irrespective of the type of
bid received (e.g., a CPI bid, a CPC bid, a CPS bid, or a revenue
sharing bid), suppose the bid values for pos.sub.1 for the content
providers are as follows: content provider A's bid has a bid value
of $1.00, content provider B's bid has a bid value of $0.90,
content provider C's bid has a bid value of $0.80, content provider
D's bid has a bid value of $0.75, and content provider E's bid has
a bid value of $0.60. As content provider A's bid has the highest
bid value, content provider A will be awarded pos.sub.1. All other
positions on the rendered page will be similarly allocated among
those content providers bidding therefore, keeping in mind that in
some instances, there will be constraints within the auction that
need to be satisfied. For example, each bidder may be permitted to
be awarded only a single item in the auction. Suppose in this
example that content providers B and C are awarded the other two
positions available for auction on the rendered page.
[0122] Once the allocation of items is determined, the price the
winning bidder must pay for the item awarded is determined, as
indicated at block 416. In a Vickrey-like auctions, the winning
bidder typically pays for an item the value that the bidder took
away from the other winning bidders as a result of their
participation in the auction. With reference to FIG. 5, a
computer-implemented method for determining the price the winning
bidder must pay for the awarded item using Vickrey-like auction
principles in accordance with an embodiment of the present
invention is illustrated and designated generally as reference
numeral 500. Initially, as shown at block 510, the system
determines the identify of all bidders who placed bids on the
awarded item who are ultimately awarded any item in the auction and
generates a list thereof. That is, if bidder i is awarded a
particular item in the auction, a list of all bidders who bid on
the item awarded to bidder i is generated. (Note that the value for
all the bidders who are not awarded an item in the auction will be
zero.)
[0123] Subsequently, as shown at block 512, the identity of the
winning bidder is removed from the list (i.e., the identity of
bidder i is removed from the list). Next, as shown at block 514,
the system determines the sum of the values of the bids for all
other bidders in the auction who bid on the item awarded to the
winning bidder, that is, the sum of the values of the bids for the
awarded items for all bidders whose identity remains on the list.
This value is designated Ri.
[0124] Subsequently, the scenario is again evaluated, this time
from a perspective as if the winning bidder had not participated in
the auction for the awarded item, i.e., as if bidder i had not
placed a bid on the item it was ultimately awarded. This is shown
at block 516. Next, the list generated at block 510 is recalled by
the system and the identity of the winning bidder (i.e., bidder i)
and the second place bidder (i.e., the bidder who would have been
the winning bidder had bidder i not participated in the auction)
are removed from the list. This is shown at block 518.
Subsequently, the sum of the values of the bids for all other
bidders in the auction who bid on the item awarded to the winning
bidder, that is, the sum of the values of the bids for the awarded
item for all bidders whose identity remains on the list, is
determined, as shown at block 520. This value is designated Si.
[0125] For instance, in the above-described scenario, if content
provider A had not participated in the auction, content provider B
would have been awarded pos.sub.1 and thus, the sum of all other
bidders who are awarded any item in the auction (in this case only
content provider C) may be determined according to the altered
allocation, the sum being denoted by S.sub.i.
[0126] Subsequently, the price the winning bidder must pay for the
awarded item is determined as Ri minus Si, as indicated at block
522. Accordingly, in the above-described scenario, content provider
A will be charged a price for pos.sub.1 equal to the value taken
away from content providers B and C. R.sub.i in this scenario may
be determined to be equal to $0.90 (the value of content provider
B's bid) plus $0.80 (the value of content provider C's bid), or
$1.70. Additionally, if content provider A was removed from the
determination and content provider B was awarded pos.sub.1, Si (or
the sum of the bid values for all other bidders who placed a bid on
pos.sub.1 and who were ultimately awarded any item in the auction,
in this case only content provider C) may be determined to be equal
to $0.80. Thus, content provider A will be charged R.sub.i ($1.70)
less S.sub.i ($0.80) or $0.90 for placement in pos.sub.1.
[0127] Note that in this scenario, the price that a bidder will be
charged for being awarded an item generally will be the value of
the second highest bid received for the item. In this instance,
content provider A pays for pos.sub.1 the bid value of content
provider B's bid (the second highest bid value received for
pos.sub.1) or $0.90.
[0128] In certain circumstances, for instance when a large number
of bidders are placing bids for a large number of items in a single
auction, the general Vickrey-like auction as described above can be
somewhat difficult to solve in real time. This is, in part, due to
the need to separately determine the allocation of items and the
price for each bidder who is awarded an item in the auction. In
such circumstances, it may be desirable to run a "modified"
Vickrey-like auction. For a modified Vickrey-like auction,
contemplate that the items being auctioned may be provided in an
order of decreasing desirability. For instance, in the
above-described scenario, contemplate that the ordering of
pos.sub.1, pos.sub.2, . . . pos.sub.k is given in decreasing order
of desirability. That is, if a content provider bids on position i
and on position j, then i<j implies that the content provider
values position i over position j. As such, relative placement may
be determined such that for each position in the order, a
single-item Vickrey-like auction is performed, and the winner
simply removed from the equation for consideration of subsequently
determined positions.
[0129] In the modified Vickrey-like auction described herein, each
bidder is permitted to place only a single bid and designate such
bid for one or more items available for auction. A bid value may
then be determined for each bid received and the auction items may
be allocated to the bidders in such a way that the total value is
maximized. Accordingly, the value of each bidder's bid determines,
e.g., which position on the rendered page it will be awarded. Thus,
e.g., the content provider providing the bid with the highest bid
value will be awarded the most prominent placement (pos.sub.1 in
the above-described scenario), the content provider providing the
bid with the second highest bid value will be awarded the second
most prominent placement (pos.sub.2 in the above-described
scenario), and so on. Note that the bid values to be awarded each
content provider's bid may be determined, e.g., as previously set
forth according to one or more of the cost-per-impression,
cost-per-click, cost-per-sale, and/or revenue sharing pricing
models.
[0130] By way of example only, contemplate that content provider A
places a bid having a value of $1.00 and designates such bid for
any of pos.sub.1, pos.sub.2, or pos.sub.3; content provider B
places a bid having a value of $0.90 and designates such bid for
any of pos.sub.1, pos.sub.2, or pos.sub.3; content provider C
places a bid having a value of $0.80 and designates such bid for
any of pos.sub.1 or pos.sub.2; content provider D places a bid
having a value of $0.75 and designates such bid for any of
pos.sub.1, pos.sub.2, or pos.sub.3; and content provider E places a
bid having a value of $0.60 and designates such bid for any of
pos.sub.1, pos.sub.2, or pos.sub.3.
[0131] With respect to pos.sub.1, content provider A will be
awarded the position as content provider A placed the bid having
the highest bid value for pos.sub.1. Content provider A will pay
for pos.sub.1 the value of the second highest bid for pos.sub.1 or
$0.90 (content provider B's bid for pos.sub.1).
[0132] Subsequently, with respect to pos.sub.2, content provider A
again provided the bid having the highest bid value as its $1.00
bid was designated for any of pos.sub.1, pos.sub.2, or pos.sub.3.
However, in the modified Vickrey-like auction of the present
invention, it will be assumed that content provider A values
pos.sub.1 over pos.sub.2 (as 1<2) and, thus, as content provider
A has already been awarded pos.sub.1, it will be removed from
consideration for subsequently determined positions. If content
provider A is removed from consideration, of the remaining content
providers, B, C, D and E all placed bids for pos.sub.2. Content
provider B will be awarded pos.sub.2 as it provided the bid having
the highest bid value (excluding content provider A) and content
provider B will pay for pos.sub.2, the second highest bid value
placed for pos.sub.2 (excluding content provider A) or $0.80 (the
value of content provider C's bid for pos.sub.2).
[0133] Subsequently, with respect to pos.sub.3, content provider A
again provided the bid having the highest bid value as its $1.00
bid was designated for any of pos.sub.1, pos.sub.2, or pos.sub.3.
However, as content provider A has already been awarded a position,
it will be removed from the consideration for determination of the
content item placed in pos.sub.3. Of the remaining content
providers, content provider B provided the bid having the highest
bid value for pos.sub.2 as its $0.90 bid was designated for any of
pos.sub.1, pos.sub.2, or pos.sub.3. However, content provider B has
also already been awarded a position (pos.sub.2), and, therefore,
it will be removed from consideration for determination of the
content item placed in pos.sub.3 as well.
[0134] Of the remaining content providers, only content providers D
and E placed bids for pos.sub.3 (content provider C's bid being
designated only for pos.sub.1 or pos.sub.2). As such, content
provider D will be awarded pos.sub.3 (as its bid for pos.sub.3 is
the highest of the remaining content providers being considered for
pos.sub.3) and it will pay for pos.sub.3 the second highest bid
value placed for pos.sub.3 (excluding content providers A and B) or
$0.60 (the value of content provider E's bid for pos.sub.3).
[0135] In yet another embodiment of the present invention, a
content provider may be permitted to specify a different bid for
each item on which it desires to place a bid and the allocation and
pricing of the items determined according to the modified
Vickrey-like auction principles hereinabove described. For
instance, again contemplate the above-described scenario wherein
content providers A, B, C, D, and E are bidding for placement of
their content in pos.sub.1, pos.sub.2, and pos.sub.3 on a rendered
page. Further contemplate that content provider A places a bid
having a value of $1.00 for pos.sub.1 and a value of $0.49 for
pos.sub.2, content provider B places a bid having a value of $0.90
for pos.sub.1 and a bid having a value of $0.50 for pos.sub.2, and
content provider C places a bid having a value of $0.75 for
pos.sub.1 and a bid having a value of $0.30 for pos.sub.2, the
remaining content providers and bids for pos.sub.3 being irrelevant
to the present example and, accordingly, not delineated herein.
[0136] With respect to pos.sub.1, content provider A will be
awarded the position as it placed the bid having the highest bid
value for pos.sub.1 ($1.00) and will pay for pos.sub.1 the value of
the second-highest bid for the position or $0.90 (content provider
B's bid for pos.sub.1). With respect to pos.sub.2, content provider
B will be awarded the position as it placed the bid having the
highest bid value for pos.sub.2 ($0.50). However, in determining
the price that content provider B must pay for pos.sub.2, content
provider A's bid of $0.49 for pos.sub.2 will be taken out of
consideration for determination of the content item placed in pos2.
This is because under the modified Vickrey-like auction of this
embodiment of the present invention, it is assumed that content
provider A values pos.sub.1 over pos.sub.2 (as 1<2) and, as
content provider A was already awarded pos.sub.1, it will be taken
out of the determination for pos.sub.2. Thus, content provider B
will pay for pos.sub.2 the second highest bid value for pos.sub.2
(excluding content provider A) or $0.30 (the value of content
provider C's bid for pos.sub.2).
Methods for Introducing Randomness into the Determination of the
Relative Placement of Content Items on a Rendered Page
[0137] In another embodiment, the present invention relates to
systems and methods for introducing randomness into the relative
placement of content items based upon bid value, the content items
to be placed on a page (e.g., a web page) rendered according to a
given context, for instance, the results of a particular query run
by a search engine. In the relative placement scenarios described
hereinabove, content items are ranked and selected for relative
placement on a rendered page based solely upon the bid values
determined for each content item. That is, the bid values
determined for each content item are ranked in descending order
and, if there are N positions on a rendered page available for
placement of content items, the N content items having the highest
bid values are selected and placed in the N positions on the page.
The content item that has the highest bid value is placed in the
most prominent or desired position, the content item that has the
second highest bid value is placed in the second most prominent or
desired position, and so on. The methodologies on which these
scenarios are run are deterministic and will render the same result
each and every time they are run from the same information.
[0138] In one embodiment of the present invention, randomness is
introduced into the deterministic scenarios hereinabove described
by permitting each content provider placing a bid on a particular
placement position on the rendered page, to have its content item
allocated to that particular placement position at a frequency
proportional to the expected performance of its content item
relative to the expected performance of the content items of all
content providers placing bids for the same position. With
reference to FIG. 6, a flow diagram is illustrated which shows a
computer-implemented method 600 for introducing randomness into the
relative placement allocation of content items in accordance with
this embodiment of the present invention.
[0139] Initially, as shown at block 610, the system receives a
plurality of bids for a particular position on a rendered page,
each bid being associated with a content item. Subsequently, a bid
value is determined for each of the plurality of bids, as indicated
at block 612.
[0140] For instance, contemplate the above-described scenario
wherein a plurality of content providers are bidding for placement
of their content items on a rendered page relative to the content
items of other content providers and wherein the positions
available to the content providers may be ordered as pos.sub.1,
pos.sub.2, . . . , pos.sub.k, with pos.sub.1 being the top-most
position on the rendered page, pos.sub.2 being the second position
from the top of the rendered page, and so on. Further contemplate
that four content providers, A, B, C, and D place bids for
placement of their content item to be placed in pos.sub.1, the bid
value for content provider A's content item being equal to $5.00,
the bid value for content provider B's content item being equal to
$4.00, the bid value for content provider C's content item being
equal to $3.00 and the bid value for content provider D's content
item being equal to $2.00.
[0141] Subsequently, as indicated at block 614, the expected
performance of each content item based upon the bid value
associated therewith is determined relative to the bid values of
the bids associated with all other content items for which bids
were placed for placement in pos.sub.1. That is, the relative
expected performance of each content item, REP.sub.x, is determined
according to the following formula: REP X = ( Bid .times. .times.
Value .times. .times. of .times. .times. Content .times. .times.
Item .times. .times. X ) .alpha. .SIGMA. .function. ( Bid .times.
.times. Value .times. .times. of .times. .times. All .times.
.times. Content .times. .times. Items .times. .times. Being .times.
.times. Ranked ) .alpha. ##EQU10##
[0142] the significance of the value of the a parameter being more
fully described below.
[0143] Thus, returning to the above-described scenario, the
relative expected performance of content item A, REP.sub.A, (with
a=1) may be determined as: REP A = ( $5 .times. .00 ) 1 ( $5
.times. .00 + $4 .times. .00 + $3 .times. .00 + $2 .times. .00 ) 1
= 0.3571 ##EQU11##
[0144] The expected performance of content item A can therefore
claim 35.71% of the total value among all content items bidding for
placement in pos.sub.1. Performing a similar calculation for each
of content items B, C, and D, the relative expected performance of
each may be determined such that content item B can claim 28.57% of
the total value among all content items bidding for placement in
pos.sub.1, content item C can claim 21.43% of the total value, and
content item D can claim 14.29% of the total value.
[0145] Subsequently, as shown at block 616, the particular position
for which each content provider's bid was placed (i.e., pos.sub.1)
may be allocated to each of content items A, B, C, and D in
proportion to their relative expected performance. That is, content
item A will be awarded pos.sub.1 35.71% of the time, content item B
will be awarded pos.sub.1 28.57% of the time, content item C will
be awarded pos.sub.1 21.43% of the time and content item D will be
awarded pos.sub.1 14.29% of the time, the awarding of pos.sub.1
occurring proportionately in terms of frequency but completely at
random.
[0146] One way in which the above-described allocation methodology
may be thought of is to contemplate that lottery tickets are
awarded to each of the bidder's items (e.g., content items) for
which bids are placed on the particular auctioned item (e.g.,
pos.sub.1), the number of lottery tickets awarded being based
determined in proportion to their performance relative to other
bidders placing bids for the same auctioned item (e.g., other
content providers placing bids for placement in the same position
on the rendered page), and a simulated random lottery drawing is
performed to choose which bidder's item (e.g., content item) is
awarded the auctioned item (e.g., pos.sub.1). In the
above-described scenario, the number of lottery tickets awarded and
the relative performance of all content items in a lottery having
1,000 tickets may be determined as set forth in Table I.
TABLE-US-00001 TABLE I Content Provider/ Bid Expected Relative
Number of Item Value Performance Lottery Tickets A $5.00 35.71%
357.1 B $4.00 28.57% 285.7 C $3.00 21.43% 217.3 D $2.00 14.29%
142.9
[0147] In this example, each content item has been allocated a
number of tickets proportional to their value relative to the
whole. When a winning ticket is chosen randomly, content items A
will have a 35.71% chance of being selected, content item B will
have a 28.57% chance of being selected, content item C will have a
21.73% chance of being selected, and content item D will have a
14.29% chance of being selected. Subsequently, as shown at block
618, each of the content items may be displayed on the rendered
page in proportion to its relative expected performance, the
awarding of pos.sub.1 occurring proportionately in terms of
frequency but completely at random.
[0148] The a parameter permits control over how much "exploring"
vs. how much "exploiting" is done. That is, as the a parameter
increases in value, the lottery allocation becomes more skewed
toward higher performing bidders (e.g., the content items of higher
performing content provider's), making the lottery more like a
standard rank with little or no randomization (i.e., "exploiting").
Conversely, lowering the value of the a parameter causes increased
randomness, permitting lower-performing content items to be
selected for display more frequently, thus giving them a chance to
improve their standing (i.e., "exploring").
[0149] For instance, if an a parameter of three is applied to the
relative expected performance equation in the above-described
example wherein there are four content items A, B, C, and D having
bid values of $5.00, $4.00, $3.00, and $2.00, respectively, the
number of lottery tickets allotted to each of the content items
would be as shown in Table II. Notice how content item A, the
highest performer, is awarded a larger number of tickets than when
the a parameter had a value of one. Thus, the higher value for the
a parameter exploits the higher performers and, consequently,
penalizes the lower performing content provider's items.
TABLE-US-00002 TABLE II Content Provider/ Bid Expected Relative
Number of Item Value Performance Lottery Tickets A $5.00 55.80%
558.0 B $4.00 28.57% 285.7 C $3.00 12.05% 120.5 D $2.00 3.57%
35.7
[0150] Introducing randomness into content ranking may seem
counterintuitive. However, it makes sense in a scenario wherein the
providers of content items (e.g., advertisements or images) are
bidding for positions on a rendered page (e.g., a web page) for a
number of reasons. First, in a standard ranking determination, if N
placement positions are available on the rendered page, only the
top N results will be displayed to the user. Content items not in
the top N are either displayed on a subsequent search results page,
or not displayed at all. This poses a problem when new content
items enter the system since ranking is based on performance and
there is no recorded performance for a new content provider. One
way in which this problem may be countered when using a standard
ranking determination is to give an artificial boost to new content
providers or items, thereby ensuring that some performance is
recorded. This solution is sub-optimal to the method of the present
invention, however, since new content items are treated differently
than long-running content items and content providers may be able
to take advantage of this, perhaps unfairly.
[0151] A second reason that it makes sense to introduce randomness
into a scenario wherein the providers of content items are bidding
for positions on a rendered page is that one danger of standard
ranking determination for search advertising is that smaller
content providers (i.e., advertisers) may be pushed out by content
providers who have larger marketing budgets or are willing to take
loss-leading bids to push out competition. The method of the
present invention wherein randomness is introduced into the
determination avoids this problem by providing all content
providers at least some inventory in a fair manner, that is, in
proportion to their bid value. This should increase competition and
stop bid prices from bottoming out.
Methods for Incremental Pricing of Items in an Auction Based Upon
Delineated Attributes
[0152] In another embodiment, the present invention relates to
systems and methods for determining bid values based upon one or
more targeting attributes for which a bidder (e.g., a content
provider) may desire to place an incrementally different bid.
Auctions often include a large number of basic goods that are
similar but not exact. That is, the basic goods may contain a high
number of variable attributes which make them incrementally
different from other similar goods. In such situations, a bidder
may wish to place a higher or lower bid on goods having one or more
particular attributes than on similar goods that are void of such
attributes. Accordingly, the method of this embodiment of the
present invention permits a bidder to allocate a "base bid" for
each basic good and then incrementally adjust the base bid for each
attribute that it perceives as being of increased or decreased
value. At the time the auction is run for each good, the total for
each bidder's base bid and all of the incremental values which hold
true regarding the good's attributes may be summed and the bid
value determined.
[0153] This embodiment of the present invention may be particularly
useful for business-to-business marketplaces in which thousands of
similar but not exact goods change hands on a regular basis. In a
currently preferred embodiment, targeting criteria with respect to
search engine users placing queries for particular content items
and/or the relative placement thereof may be differentially priced
separately from the base bids for the search terms themselves.
However, it will be understood and appreciated by those of ordinary
skill in the art that the method of this embodiment of the present
invention also may be used for other goods in which there may be a
basic rate and add-on options, e.g., bicycles, machine parts, or
automobiles.
[0154] With reference to FIG. 7, a flow diagram is illustrated
which shows a computer-implemented method 700 for determining bid
values based upon one or more targeting attributes in accordance
with this embodiment of the present invention. It will be
understood and appreciated by those of ordinary skill in the art
that although the FIGs. and discussion of this embodiment of the
present invention refer to the above-described scenario wherein a
number of content providers are bidding for placement of one or
more content items (e.g., advertisements or images) on a rendered
page (e.g., a web page), the methods and systems herein described
are equally applicable in other auction settings. The particular
scenario described herein is exemplary only and is not intended to
limit the present invention in any way.
[0155] Initially, as shown at block 710, the system receives a base
bid for placement of a bidder's content item on a rendered page.
Subsequently, it is determined whether or not incremental pricing
is desired based upon targeted attributes, as shown at block 712.
If incremental pricing is not desired, a bid value for the bid is
determined based solely on the base bid. This is indicated at block
714. If incremental pricing is desired, however, the attributes for
which pricing increments are desired, as well as the value of such
pricing increments, must be determined, as more fully described
below. It should be noted that use herein of the terms "increment"
or "incremental" is intended to cover not only increments in
pricing based upon particular attributes and/or placement positions
but also pricing decrements as well for, e.g., undesirable
attributes and/or positioning.
[0156] Referring to FIG. 8A, an illustrative screen display 800 of
an exemplary user interface (UI) is shown on which such base bids
(and their associated search phrases or bid terms) may be entered
or selected by a bidder and displayed. It will be understood and
appreciated by those of ordinary skill in the art that this is only
one possible visual configuration and, accordingly, is not intended
to limit the scope of the invention in any way. A number of
conceivable configurations may be presented which permit the bidder
(i.e., the content provider) to enter the desired information and
all such variations are contemplated to be within the scope of the
present invention.
[0157] Screen display 800 includes a base bid entry/display area
810 and a targeting attribute selection area 812. The base bid
entry/display area 810 includes a desired search phrase
entry/display area 814, a desired base bid entry/display area 816,
and a desired match type indication/display area 818. The desired
search phrase entry/display area 814 permits a bidder (e.g., a
content provider) to enter the search phrase or bid term for which
placement of a bid is desired. In the screen display 800 of FIG.
8A, the bidder has entered the search phrase "Steel Belted Radial"
in the desired search phrase entry/display area 814. The desired
base bid entry/display area 816 permits the bidder to enter the
base bid that they wish to place for the search term or phase
entered. In the screen display 800 of FIG. 8A, the bidder has
entered a base bid of $0.25 in the desired base bid entry/display
area 816. The desired match type indication/display area 818
permits a bidder to indicate in which type of match the entered
search term or phrase is desired to be included. A "broad" match is
indicated in the desired match type indication/display area 818 of
the screen display 800 of FIG. 8A.
[0158] The targeting attribute selection area 812 of the screen
display 800 of FIG. 8A includes a plurality of targeting attributes
for which the base bid may be incremented or decremented. For
instance, the targeting attribute selection area 812 of the screen
display 800 of FIG. 8A includes a user location targeting area 820,
a day of the week targeting area 822, a time of day targeting area
824, and a relative placement position targeting area 826. It will
be understood and appreciated by those of ordinary skill in the art
that the targeting attributes shown in the screen display 800 of
FIG. 8A are merely illustrative and are not intended to limit the
scope of the present invention in any way.
[0159] Once the search phrase or bid term, the match type, and the
base bid have been entered or selected by the bidder, if it is
determined at block 712 (FIG. 7) that incremental pricing based
upon targeted attributes is not desired, the bidder may simply
select the "Next" indicator 828 on the exemplary screen display 800
of FIG. 8A and proceed with the determination of bid value based
solely upon the base bid. As previously discussed, this is shown at
block 714 of FIG. 7. It should be noted that if the bidder
determines that they do not wish to proceed with placing a bid for
the search phrase or bid term, they may exit the bidding system by
selection of the "Cancel" indicator 830 on the exemplary screen
display 800 of FIG. 8A.
[0160] Returning to FIG. 7, if it is determined at block 712 that
incremental pricing based upon targeted attributes is desired, the
system receives an indication for which of a plurality of user
targeting attributes incremental pricing is desired. This is shown
at block 716. Once a desired targeting attribute has been received,
one or more attribute options for the desired targeting attribute
may be displayed to the bidder, as indicated at block 718. The
system may then receive an indication of the desired attribute
options for which the bidder desires incremental pricing, as
indicated at block 720, as well as an indication of the desired
pricing increment (or decrement) for each desired attribute option,
as indicated at block 722. Once all targeting attributes and their
associated attribute options for which the bidder desires bid
pricing adjustments have been received by the system, the bid value
for the targeted bid may be determined. This is indicated at block
724.
[0161] Returning to the exemplary screen display 800 of FIG. 8A, if
the bidder desires incremental pricing based upon targeted
attributes, it may select one or more of the user location
targeting area 820, the day of the week targeting area 822, the
time of day targeting area 824 and the relative placement position
targeting area 826. If the bidder selects the user location
targeting area 820, the bidder may then be presented with an
additional exemplary screen display 800a, as shown in FIG. 8B. The
exemplary screen display 800a of FIG. 8B includes a selected
attribute display area 832, an attribute option display area 834,
and a base bid display and instruction area 836. The selected
attribute display area 832 indicates that the bidder has selected
the user location targeting area 820 of the screen display 800 of
FIG. 8A and, thus, the bidding system is providing targeted bidding
options based upon user location. The base bid display and
instruction area 836 indicates that the bidder indicated a base bid
of $0.25 in the base bid entry/display area 816 of the screen
display 800 of FIG. 8A and informs the bidder that the increments
selected in the attribute option display area 834 will be applied
in addition to the base bid when the indicated criteria are met, as
more fully described below.
[0162] The attribute option display area 834 of the screen display
800a of FIG. 8B includes a plurality of attribute option slots 838
the bidder may use to increment their base bid. The down arrow 840
to the right of each of the attribute option slots 838 shown
indicates that the bidder may select from a pre-defined list of
options in each of the attribute option slots 838. However, it will
be understood by those of ordinary skill in the art that the bidder
may be permitted to enter their own options rather than selecting
from a pre-defined list, if desired. The attribute option display
area 834 further includes a pricing increment entry/display area
842 associated with each of the attribute option slots 838 wherein
the bidder may indicate the amount of any increment (or decrement)
they wish to associate with the attribute option displayed. For
instance, in the top attribute option slot 838 of the attribute
option display area 834 of the screen display 800a of FIG. 8B, the
bidder has indicated that the bid will be incremented by $0.10 for
each search engine user that has an Internet Protocol (IP) address
in New York, N.Y.
[0163] Once the bidder has entered/selected all desired attribute
options and their associated bid pricing increments within the user
location targeting area 820 (FIG. 8A), the "Submit" indicator 844
may be selected, at which time the bidder will be returned to the
exemplary screen display 800 of FIG. 8A. Note that at any time if
the bidder determines that they do not wish to increment their bid
based upon user location, the "Cancel" indicator 846 may be
selected to return the bidder to the exemplary screen display 800
of FIG. 8A.
[0164] Once returned to the exemplary screen display 800 of FIG.
8A, the bidder may select another of the targeted attributes on
which bid adjustments are desired, i.e., the day of the week
targeting area 822, the time of day targeting area 824, and/or the
relative placement position targeting area 826 may be selected (or
the bidder may return to the user location targeting area 820, if
desired). If the bidder selects the day of the week targeting area
822, the bidder may then be presented with an additional exemplary
screen display 800b, as shown in FIG. 8C. The exemplary screen
display 800b of FIG. 8C includes a selected attribute display area
832a, an attribute option display area 834a, and a base bid display
and instruction area 836a. The selected attribute display area 832a
indicates that the bidder has selected the day of the week
targeting area 822 of the screen display 800 of FIG. 8A and, thus,
the bidding system is providing targeted bidding options based upon
the day of the week a user is placing a search query. The base bid
display and instruction area 836a indicates that the bidder
indicated a base bid of $0.25 in the base bid entry/display area
816 of the screen display 800 of FIG. 8A and informs the bidder
that the increments selected in the attribute option display area
834a will be applied in addition to the base bid the indicated
criteria are met, as more fully described below.
[0165] The attribute option display area 834a of the exemplary
screen display 800b of FIG. 8C includes a plurality of attribute
option slots 838a the bidder may use to increment their base bid.
As with the attribute option display area 834 of the exemplary
screen display 800a of FIG. 8B, a down arrow 840a to the right of
each of the attribute option slots 838a indicates that the bidder
may select from a pre-defined list of options in each of the
attribute option slots 838a. However, it will be understood and
appreciated by those of ordinary skill in the art that the bidder
may be permitted to enter their own options rather than selecting
from a pre-defined list, if desired. The attribute option display
area 834a further includes a pricing increment entry/display area
842a associated with each of the attribute option slots 838a
wherein the bidder may indicate the amount of any increment (or
decrement) they wish to associate with the attribute option
displayed. For instance, in the top attribute option slot 838a of
the attribute option display area 834a of the screen display 800b
of FIG. 8C, the bidder has indicated that the bid will incremented
by $0.10 for each search engine user that is placing their search
engine query on a Monday.
[0166] Once the bidder has entered/selected all desired attribute
options and their associated bid pricing increments within the day
of the week targeting area 822 (FIG. 8A), the "Submit" indicator
844a may be selected at which time the bidder will be returned to
the exemplary screen display 800 of FIG. 8A. Note that at any time
if the bidder determines that they do not wish to increment their
bid based upon the day of the week, the "Cancel" indicator 846a may
be selected to return the bidder the exemplary screen display 800
of FIG. 8A.
[0167] Once returned to the exemplary screen display 800 of FIG.
8A, the bidder may select another of the targeted attributes on
which bid adjustments are desired, i.e., the time of day targeting
area 824 and/or the relative placement position targeting area 826
may be selected (or the bidder may return to the user location
targeting area 820 or the day of the week targeting area 822, if
desired). If the bidder selects the time of day targeting area 824,
the bidder may then be presented with an additional exemplary
screen display 800c, as shown in FIG. 8D. The exemplary screen
display 800c of FIG. 8D includes a selected attribute display area
832b, an attribute option display area 834b and a base bid display
and instruction area 836b. The selected attribute display area 832b
indicates that the bidder has selected the time of day targeting
area 824 of the screen display 800 of FIG. 8A and, thus, the
bidding system is providing targeted bidding options based upon the
time of day a user is placing a search query. The base bid display
and instruction area 836b indicates that the bidder indicated a
base bid of $0.25 in the base bid entry/display area 816 of the
screen display 800 of FIG. 8A and informs the bidder that the
increments selected in the attribute option display area 834b will
be applied in addition to the base bid when the indicated criteria
are met, as more fully described below.
[0168] The attribute option display area 834b of the exemplary
screen display 800c of FIG. 8D includes a plurality of attribute
option slots 838b the bidder may use to increment their base bid.
As with the attribute option display area 834 of the exemplary
screen display 800a of FIG. 8B, a down arrow 840b to the right of
each of the attribute option slots 838b indicates that the bidder
may select from a pre-defined list of options in each of the
attribute option slots 838b. However, it will be understood and
appreciated by those of ordinary skill in the art that the bidder
may be permitted to enter their own options rather than selecting
from a pre-defined list, if desired. The attribute option display
area 834b further includes a pricing increment entry/display area
842b associated with each of the attribute option slots 838b
wherein the bidder may indicate the amount of any increment (or
decrement) they wish to associate with the attribute option
displayed. For instance, in the top attribute option slot 838b of
the attribute option display area 834b of the screen display 800c
of FIG. 8D, the bidder has indicated that bid will be incremented
by $0.10 for each search engine user that is placing their search
engine query at or about 12:00 p.m.
[0169] Once the bidder has entered/selected all attribute options
and their associated bid pricing increments that are desired within
the time of day targeting area 824 (FIG. 8A), it may select the
"Submit" indicator 844b may be selected at which time the bidder
will be returned to the exemplary screen display 800 of FIG. 8A.
Note that at any time if the bidder determines that they do not
wish to increment their bid based upon the time of day, the
"Cancel" indicator 846b may be selected to return the bidder to the
exemplary screen display 800 of FIG. 8A.
[0170] Once returned to the exemplary screen display 800 of FIG.
8A, the bidder may select another of the targeted attributes on
which bid adjustments are desired, i.e., the relative placement
position targeting area 826 may be selected (or the bidder may
return to the user location targeting area 820, the day of the week
targeting area 822, or the time of day targeting area 824, if
desired). If the bidder selects the relative placement position
targeting area 826, the bidder may then be presented with an
additional exemplary screen display 800d, as shown in FIG. 8E. The
exemplary screen display 800d of FIG. 8E includes a selected
attribute display area 832c, an attribute option display area 834c,
and a base bid display and instruction area 836c. The selected
attribute display area 832c indicates that the bidder has selected
the relative placement position targeting area 826 of the screen
display 800 of FIG. 8A and, thus, the bidding system is providing
targeted bidding options based upon the relative placement position
that may be awarded the content item associated with the bid
placed. The base bid display and instruction area 836c indicates
that the bidder indicated a base bid of $0.25 in the base bid
entry/display area 816 of the screen display 800 of FIG. 8A and
informs the bidder that the increments selected in the attribute
option display area 834c will be applied in addition to the base
bid when the bid placed meets the indicated criteria, as more fully
described below.
[0171] The attribute option display area 834c of the exemplary
screen display 800d of FIG. 8E includes a plurality of attribute
option slots 838c the bidder may use to increment their base bid.
As with the attribute option display area 834 of the exemplary
screen display 800a of FIG. 8B, a down arrow 840c to the right of
each of the attribute option slots 838c indicates that the bidder
may select from a pre-defined list of options in each of the
attribute option slots 838c. However, it will be understood and
appreciated by those of ordinary skill in the art that the bidder
may be permitted to enter their own options rather than selecting
from a pre-defined list, if desired. The attribute option display
area 834c further includes a pricing increment entry/display area
842c associated with each of the attribute option slots 838c
wherein the bidder may indicate the amount of any increment (or
decrement) they wish to associate with the attribute option
displayed. For instance, in the top attribute option slot 838c of
the attribute option display area 834c of the screen display 800d
of FIG. 8E, the bidder has indicated that their bid will be
incremented by $0.85 for placement in the prominent or most desired
content item placement position.
[0172] Once the bidder has entered/selected all desired attribute
options and their associated bid pricing increments within the
relative placement position targeting area 826 (FIG. 8A), the
"Submit" indicator 844c may be selected at which time the bidder
will be returned to the exemplary screen display 800 of FIG. 8A.
Note that at any time if the bidder determines that they do not
wish to increment their bid based upon relative placement position
of the content item, the "Cancel" indicator may be selected 836c to
return the bidder to the exemplary screen display 800 of FIG.
8A.
[0173] In the exemplary screen displays 800a, 800b, 800c, and 800d,
any intersection of one or more attribute options results in
addition (or subtraction) of the indicated increments. For
instance, if a search for the phrase "steel belted radial" ($0.25)
is submitted from an Internet Protocol (IP) address in New York,
N.Y. ($0.10) on Monday ($0.10) at or about 12:00 noon ($0.10) and
the content item is awarded the most prominent placement position
as a result of the search ($0.85), the total bid would be $1.40.
From this bid, the bid value may be determined, depending upon the
pricing model under which it was submitted (e.g., CPI bid, CPC bid,
CPS bid, and/or revenue sharing percentage bid).
[0174] Using the method of this embodiment of the present
invention, content providers may be provided with the flexibility
to bid on a basic good (i.e., a search term) and then incrementally
adjust their bid based upon desired attributes, e.g., the search
engine user and/or the awarded placement position. The actual bid
values may then be determined dynamically depending on which
attribute options are satisfied.
Method for Determining Relative Placement of Content Items of
Varying Shapes and Sizes
[0175] In another embodiment, the present invention relates to
systems and methods for determining relative placement of content
items of varying shapes and sizes based upon bid value, the content
items to be placed on a page (e.g., a web page) rendered according
to a given context, for instance, the results of a particular query
run by a search engine. In the auction scenarios hereinabove
described, content providers are permitted to place bids for one or
more similarly defined, although disparately located, content item
positions on a page. However, such size and shape limitations are
often not conducive to the content item a particular content
provider wishes to place on the rendered page. For instance, a
content provider may have a content item that is twice as tall as a
standard content item and, accordingly, it would value two adjacent
slots (one linearly atop the other), but award of a single content
item position would be useless.
[0176] In one embodiment of the present invention, content
providers may be permitted to bid for mixed or bundled content item
positions if, e.g., the content item desired to be placed on the
rendered page does not fit within the parameters of a single
defined content item position. Determination of which content item
positions are awarded which content items (or, more accurately,
which content providers) may still be determined such that value to
the hosting site (e.g., the search engine) is maximized, as more
fully described below.
[0177] Referring to FIG. 9, a flow diagram is illustrated which
shows a computer-implemented method 900 for determining relative
placement of content items of varying shapes and sizes in
accordance with an embodiment of the present invention. Initially,
as indicated at block 910, the system receives a plurality of bids,
each bid being associated with a content item. Subsequently, as
indicated at block 912, the system receives an indication of which
one or more of a plurality of content item positions each of the
plurality of bids is to be associated. Each bid received may be
associated with the same content item position or combination of
content item positions or the bids received may vary with regard to
which content item position or positions they are to be
associated.
[0178] Next, as shown at block 914, a bid value may be determined
for each of the plurality of bids, if necessary. It will be
understood by those of ordinary skill in the art that if all bids
received were placed according to the same pricing model (e.g., the
cost-per-impression pricing model, the cost-per-click pricing
model, the cost-per-sale pricing model, or the revenue sharing
pricing model), the bids could be considered to represent
comparable value and determination of a bid value therefore may not
be necessary.
[0179] It should be noted with respect to bid value determination
that other criteria, for instance, an increased likelihood that a
larger content item will be accessed relative to a smaller content
item, may be taken into account as well, if desired.
[0180] Subsequently, as shown at block 916, the plurality of
content item positions may be allocated among the content items for
which bids were received such that value to the hosting site (e.g.,
the search engine web site) is maximized, as more fully described
below. Next, as indicated at block 918, the content items may be
displayed in their respective allocated content item positions.
[0181] Referring to FIG. 10, a schematic diagram is shown which
illustrates an example in which the bundled auction method of this
embodiment of the present invention may be applied to five content
providers (A, B, C, D, and E) each of which place bids for
placement of their content items on a single rendered page (e.g., a
web page). In this example, each of the content providers desire to
have content items of varying sizes and shapes displayed on the
rendered page and, accordingly, desire to bid on different
combinations of available space on the page.
[0182] FIG. 10 illustrates a web-page layout 1000 in the form of
grid having four content item positions (A1, A2, B1, and B2), each
of which is rectangular in shape and approximately equal in size,
arranged adjacent one another such that a larger overall rectangle
is formed. It will be understood and appreciated by those of
ordinary skill in the art that the web-page layout 1000 illustrated
in FIG. 10 is merely exemplary and not intended to limit the scope
of the present invention in any way. For instance, the matrix
layout may be arbitrarily large. Additionally, arbitrary geometries
may also be rendered (e.g., on an L, T, or gamma geometry). All
such variations are contemplated to be within the scope of the
present invention.
[0183] By way of example, contemplate a scenario wherein content
providers A and B each wish to bid for placement of content items
on the web-page layout 1000 and each have a content item which
approximates the size and shape of any one of the four content item
positions A1, A2, B1, and/or B2. Accordingly, content providers A
and B place bids (whether identical or varying based upon position)
for placement of their content items in a single content item
position. It will be understood and appreciated by those of
ordinary skill in the art that the bids received from each of
content providers A and B may be based on any one or more of the
above-described pricing models (i.e., the CPI pricing model, the
CPC pricing model, the CPS pricing model, and/or the revenue share
pricing model) and a bid value determined therefore, if
desired.
[0184] For purposes of the present example, contemplate that
content provider A values each of the available content item
positions equally and places a bid for any of content item
positions A1, A2, B1, or B2 having a bid value of $3.00. Further
contemplate that content provider B values content item positions
A1 or B1 over content item positions A2 or B2. Accordingly, content
provider B places a bid for either of positions A1 or B1 having a
bid value of $4.00 and for either of A2 or B2 having a bid value of
$2.00.
[0185] Further contemplate that content provider C wishes to bid
for placement of a content item on the web-page layout 1000 and has
a content item which approximates the size and shape of two of the
content item positions positioned linearly atop one another. That
is, content provider C desires to place a bid for placement of its
content item such that it encompasses either the combination of
positions A1 and A2 or the combination of content positions B1 and
B2. Accordingly, content provider C places bids (whether identical
or varying based upon which of the combinations it is awarded) for
placement of its content item on the web-page layout 1000 of FIG.
10. It will again be understood by those of ordinary skill in the
art that the bids received from content provider C may be based on
any one or more of the above-described pricing models and a bid
value determined therefore, if desired.
[0186] For purposes of the present example, contemplate that
content provider C values each of the combination of content items
A1 and A2 and the combination of content B1 and B2 equally and
places a bid for either combination having a bid value of
$7.00.
[0187] Further contemplate that content provider D wishes to bid
for placement of a content item on the web-page layout 1000 and has
a content item which approximates the size and shape of two of the
content item positions positioned laterally aside one another. That
is, content provider D desires to place a bid for placement of its
content item such that it encompasses either the combination of
positions A1 and B1 or the combination of content positions A2 and
B2. Accordingly, content provider D places bids (whether identical
or varying based upon which of the combinations it is awarded) for
placement of its content item on the web-page layout 1000 of FIG.
10. It will again be understood and appreciated by those of
ordinary skill in the art that the bids received from content
provider D may be based on any one or more of the above-described
pricing models and a bid value determined therefore, if
desired.
[0188] For purposes of the present example, contemplate that
content provider D values each of the combination of content items
A1 and B1 and the combination of content items A2 and B2 equally
and places a bid for either combination having a value of $6.00
[0189] Further contemplate that content provider E wishes to bid
for placement of a content item on the web-page layout 1000 and has
a content item which approximates the size and shape of all four of
the content item positions arranged as they are on the web-page
layout 1000. That is, content provider E desires to place a bid for
placement of its content item such that it encompasses the
combination of all of content item positions A1, A2, B1, and B2
and, accordingly, places a bid therefore (such bid being based upon
any one or more of the above-described pricing models). For
purposes of the present example, contemplate that content provider
E places a bid having a value of $10.00 for the combination of all
of content items A1, A2, B1, and B2.
[0190] As previously described, the allocation of content item
positions to the various content providers will be determined such
that value to the hosting site (e.g., the search engine web site)
is maximized. Accordingly, the system of the present invention must
determine which of the available combinations of space maximizes
the total value and allocate the content item positions
accordingly. In a first scenario, contemplate that content provider
E is awarded the combination all of content item positions A1, A2,
B1, and B2. As all content item positions are allocated to content
provider E, content providers A, B, C, and D will not have their
content items displayed in the web page layout 1000 of FIG. 10. The
total value in this first scenario is the value of content provider
E's bid or $10.00.
[0191] In a second scenario, contemplate that content provider D is
awarded the combination of content item positions A1 and B1 (which
it values at $6.00). Content items A2 and B2 remain to be
allocated. As content provider E bid only on the combination of all
content items, the remaining content items to be allocated are of
no interest to it. Additionally, as content provider C placed bids
on only the combination of content items A1 and A2 or B1 and B2,
the remaining content items to be allocated are of no interest to
it either. Content providers A and B placed bids on any one of the
content item positions individually. Assume for purposes of this
example that each content provider may be awarded only a single
content item or combination of items on which it placed a bid. As
such, value is maximized equally if content provider A is awarded
content item A2 and content provider B is awarded content item B2
or if content provider B is awarded content item A2 and content
provider A is awarded content item B2. In either instance, the
value received for content items A2 and B2 is $5.00. Thus, the
overall value of this second scenario is $6.00 plus $5.00 or
$11.00.
[0192] In a third scenario, contemplate that content provider D is
awarded the combination of content item positions A2 and B2 (which
it values at $6.00). Content items A1 and B1 remain to be
allocated. As content provider E bid only on the combination of all
content items, the remaining content items to be allocated are of
no interest to it. Additionally, as content provider C placed bids
on only the combination of content items A1 and A2 or B1 and B2,
the remaining content items to be allocated are of no interest to
it either. Content providers A and B placed bids on any one of the
content item positions individually. Since it is assumed for
purposes of this example that each content provider may be awarded
only a single content item or combination of items on which it
placed a bid, value is maximized equally if content provider A is
awarded content item A1 and content provider B is awarded content
item B1 or if content provider B is awarded content item A1 and
content provider A is awarded content item B1. In either instance,
the value received for content items A1 and B1 is $7.00. Thus, the
overall value of this third scenario is $6.00 plus $7.00 or
$13.00.
[0193] In a fourth scenario, contemplate that content provider C is
awarded the combination of content item positions A1 and A2 (which
it values at $7.00). Content items B1 and B2 remain to be
allocated. As content provider E bid only on the combination of all
content items, the remaining content items to be allocated are of
no interest to it. Additionally, as content provider D placed bids
on only the combination of content items A1 and B1 or A2 and B2,
the remaining content items to be allocated are of no interest to
it either. Content providers A and B placed bids on any one of the
content item positions individually. Since it is assumed for
purposes of this example that each content provider may be awarded
only a single content item or combination of items on which it
placed a bid, value is maximized if content provider A is awarded
content item B2 (which it values at $3.00) and content provider B
is awarded content item B1 (which it values at $4.00). Thus, the
overall value of this fourth scenario is $7.00 plus $3.00 plus
$4.00 or $14.00.
[0194] In a fifth scenario, contemplate that content provider C is
awarded the combination of content item positions B1 and B2 (which
it values at $7.00). Content items A1 and A2 remain to be
allocated. As content provider E bid only on the combination of all
content items, the remaining content items to be allocated are of
no interest to it. Additionally, as content provider D placed bids
on only the combination of content items A1 and B1 or A2 and B2,
the remaining content items to be allocated are of no interest to
it either. Content providers A and B placed bids on any one of the
content item positions individually. Since it is assumed for
purposes of this example that each content provider may be awarded
only a single content item or combination of items on which it
placed a bid, value is maximized if content provider A is awarded
content item A2 (which it values at $3.00) and content provider B
is awarded content item A1 (which it values at $4.00). Thus, the
overall value of this fifth scenario is $7.00 plus $3.00 plus $4.00
or $14.00.
[0195] In a sixth scenario, contemplate that content provider B is
awarded content item A1 (which it values at $4.00). Content items
A2, B1, and B2 remain to be allocated. As content provider E bid
only on the combination of all content items, the remaining content
items to be allocated are of no interest to it. Further contemplate
that content provider D is awarded the combination of content items
A2 and B2 (which it values at $6.00). Content item B1 remains to be
allocated. As content provider C placed bids only on the
combination of content items A1 and A2 or B1 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
B1 to content provider A (which it values at $3.00). Thus, the
overall value of this sixth scenario is $4.00 plus $6.00 plus $3.00
or $13.00.
[0196] In a seventh scenario (beginning the same as the sixth
scenario), contemplate that content provider B is awarded content
item A1 (which it values at $4.00). Content items A2, B1, and B2
remain to be allocated. As content provider E bid only on the
combination of all content items, the remaining content items to be
allocated are of no interest to it. Further contemplate that
content provider C is awarded the combination of content items B1
and B2 (which it values at $7.00). Content item A2 remains to be
allocated. As content provider D placed bids only on the
combination of content items A1 and B1 or A2 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
A2 to content provider A (which it values at $3.00). Thus, the
overall value of this seventh scenario is $4.00 plus $7.00 plus
$3.00 or $14.00.
[0197] In an eighth scenario, contemplate that content provider B
is awarded content item A2 (which it values at $2.00). Content
items A1, B1, and B2 remain to be allocated. As content provider E
bid only on the combination of all content items, the remaining
content items to be allocated are of no interest to it. Further
contemplate that content provider D is awarded the combination of
content items A1 and B1 (which it values at $6.00). Content item B2
remains to be allocated. As content provider C placed bids only on
the combination of content items A1 and A2 or B1 and B2, the
remaining content item is of no interest to it. Further, since it
is assumed for purposes of this example that each content provider
may be awarded only a single content item or combination of items
on which it placed a bid, the only remaining option is to award
content item B2 to content provider A (which it values at $3.00).
Thus, the overall value of this eighth scenario is $2.00 plus $6.00
plus $3.00 or $11.00.
[0198] In a ninth scenario (beginning the same as the eighth
scenario), contemplate that content provider B is awarded content
item A2 (which it values at $2.00). Content items A1, B1, and B2
remain to be allocated. As content provider E bid only on the
combination of all content items, the remaining content items to be
allocated are of no interest to it. Further contemplate that
content provider C is awarded the combination of content items B1
and B2 (which it values at $7.00). Content item A1 remains to be
allocated. As content provider D placed bids only on the
combination of content items A1 and B1 or A2 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
A1 to content provider A (which it values at $3.00). Thus, the
overall value of this ninth scenario is $2.00 plus $7.00 plus $3.00
or $12.00.
[0199] In a tenth scenario, contemplate that content provider B is
awarded content item B1 (which it values at $4.00). Content items
A1, A2, and B2 remain to be allocated. As content provider E bid
only on the combination of all content items, the remaining content
items to be allocated are of no interest to it. Further contemplate
that content provider D is awarded the combination of content items
A2 and B2 (which it values at $6.00). Content item A1 remains to be
allocated. As content provider C placed bids only on the
combination of content items A1 and A2 or B1 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
A1 to content provider A (which it values at $3.00). Thus, the
overall value of this tenth scenario is $4.00 plus $6.00 plus $3.00
or $13.00.
[0200] In an eleventh scenario (beginning the same as the tenth
scenario), contemplate that content provider B is awarded content
item B1 (which it values at $4.00). Content items A1, A2, and B2
remain to be allocated. As content provider E bid only on the
combination of all content items, the remaining content items to be
allocated are of no interest to it. Further contemplate that
content provider C is awarded the combination of content items A1
and A2 (which it values at $7.00). Content item B2 remains to be
allocated. As content provider D placed bids only on the
combination of content items A1 and B1 or A2 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
B2 to content provider A (which it values at $3.00). Thus, the
overall value of this eleventh scenario is $4.00 plus $7.00 plus
$3.00 or $14.00.
[0201] In a twelfth scenario, contemplate that content provider A
is awarded content item A1 (which it values at $3.00). Content
items A2, B1, and B2 remain to be allocated. As content provider E
bid only on the combination of all content items, the remaining
content items to be allocated are of no interest to it. Further
contemplate that content provider D is awarded the combination of
content items A2 and B2 (which it values at $6.00). Content item B1
remains to be allocated. As content provider C placed bids only on
the combination of content items A1 and A2 or B1 and B2, the
remaining content item is of no interest to it. Further, since it
is assumed for purposes of this example that each content provider
may be awarded only a single content item or combination of items
on which it placed a bid, the only remaining option is to award
content item B1 to content provider B (which it values at $4.00).
Thus, the overall value of this twelfth scenario is $3.00 plus
$6.00 plus $4.00 or $13.00.
[0202] In a thirteenth scenario (beginning the same as the twelfth
scenario), contemplate that content provider A is awarded content
item A1 (which it values at $3.00). Content items A2, B1, and B2
remain to be allocated. As content provider E bid only on the
combination of all content items, the remaining content items to be
allocated are of no interest to it. Further contemplate that
content provider C is awarded the combination of content items B1
and B2 (which it values at $7.00). Content item A2 remains to be
allocated. As content provider D placed bids only on the
combination of content items A1 and B1 or A2 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
A2 to content provider B (which it values at $2.00). Thus, the
overall value of this thirteenth scenario is $3.00 plus $7.00 plus
$2.00 or $12.00.
[0203] In a fourteenth scenario, contemplate that content provider
A is awarded content item B1 (which it values at $3.00). Content
items A1, A2, and B2 remain to be allocated. As content provider E
bid only on the combination of all content items, the remaining
content items to be allocated are of no interest to it. Further
contemplate that content provider D is awarded the combination of
content items A2 and B2 (which it values at $6.00). Content item A1
remains to be allocated. As content provider C placed bids only on
the combination of content items A1 and A2 or B1 and B2, the
remaining content item is of no interest to it. Further, since it
is assumed for purposes of this example that each content provider
may be awarded only a single content item or combination of items
on which it placed a bid, the only remaining option is to award
content item A1 to content provider B (which it values at $4.00).
Thus, the overall value of this fourteenth scenario is $3.00 plus
$6.00 plus $4.00 or $13.00.
[0204] In a fifteenth scenario (beginning the same as the
fourteenth scenario), contemplate that content provider A is
awarded content item B2 (which it values at $3.00). Content items
A1, A2, and B1 remain to be allocated. As content provider E bid
only on the combination of all content items, the remaining content
items to be allocated are of no interest to it. Further contemplate
that content provider C is awarded the combination of content items
B1 and B2 (which it values at $7.00). Content item A2 remains to be
allocated. As content provider D placed bids only on the
combination of content items A1 and B1 or A2 and B2, the remaining
content item is of no interest to it. Further, since it is assumed
for purposes of this example that each content provider may be
awarded only a single content item or combination of items on which
it placed a bid, the only remaining option is to award content item
A2 to content provider B (which it values at $2.00). Thus, the
overall value of this fifteenth scenario is $3.00 plus $7.00 plus
$2.00 or $12.00.
[0205] As can be seen from the above-described scenarios, value is
maximized at $14.00 if allocation is determined in accordance with
any of scenarios 4, 5, 7, or 11. As any of these scenarios will
maximize value to the hosting site (e.g., the search engine web
site), allocation may be determined among these scenarios according
to any other criteria the hosting site so chooses, e.g., maximizing
the number of content providers whose content items are shown or
rewarding content providers having a long history with the hosting
site.
[0206] Selection and placement of content items in the content
items positions on a rendered page (referred to herein as a
"matrix") may be more generally described with reference to FIG. 19
is a flow diagram showing a computer-implemented method for
selecting content items to be placed in a matrix on a rendered
page, the content items having varying shapes or sizes, in
accordance with an embodiment of the present invention. Initially,
as indicated at block 1910, the content items and their respective
bid information may be organized such that all relevant information
may be more easily evaluated. Such organization may take any number
of forms known to those of ordinary skill in the art and the manner
in which such organization takes place, or the form in which the
organized data may be rendered, are not intended to limit the scope
of the present invention.
[0207] By way of example only, contemplate the seven content
providers place bids for content items to be placed in a matrix on
a rendered page, the rendered page having a grid-like layout as
shown in FIG. 10. As the matrix shown in FIG. 10 is two
dimensional, the data may be organized in terms of the number of
slots that are necessary for the content items for each of the x
dimension and the y dimension. The exemplary content items and
their respective bid values per slot are indicated in Table III.
TABLE-US-00003 TABLE III $ Per Content Item ID # of X Axis Slots #
of y Axis Slots Total $ Slot 1 1 1 $3.00 $3.00 2 2 1 $6.00 $3.00 3
1 2 $7.00 $3.50 4 2 2 $10.00 $2.50 5 1 2 $6.00 $3.00 6 1 1 $4.00
$4.00 7 1 1 $1.00 $1.00
[0208] Subsequently, as shown at block 1912, the content item
having the highest bid value per matrix slot is determined for
placement in the first matrix slot to be filled. In one embodiment,
the slots may be filled from left to right and from top to bottom.
Thus, in the matrix of FIG. 10, the first slot to which a content
item will be awarded is slot A1. The content item chosen to fill
slot A1 will be the slot providing the maximum value therefore.
Accordingly, as $4.00 per slot for content item ID 6 provides the
highest value, it will be selected for slot A1 and, accordingly,
awarded position A1. This is indicated at block 1914.
[0209] Subsequently, as shown at block 1916, the remaining matrix
area is determined. Next, the content items exceeding the remaining
matrix area and the content item awarded the first matrix slot
(i.e., content item ID 6) are filtered out of consideration, as
indicated at block 1918.
[0210] Subsequently, as the slots are being filled from left to
right and from top to bottom, the second slot to be filled will be
slot B1. Accordingly, it is next determined which of the remaining
content items provides the highest bid value for slot B1. This is
indicated at block 1920. Referring back to Table III, it can be
seen that content item ID 3 provides $3.50 value per slot. Since
content item ID 3 requires one slot in the x dimension and two
slots in the y dimension, such content item will fit within the
remaining matrix area. Accordingly, as indicated at block 1922,
content item ID 3 is awarded the second matrix slot (slot B1).
However, as content item ID 3 fills two slots in the y dimension,
it also will be awarded the third matrix slot or slot B2.
[0211] It should be noted that if content item ID 3 had filled only
slot B1, in the present example, the next slot to be filled would
have been slot B2. As such, the remaining matrix area would have
been determined (as indicated at block 1924), the content items
exceeding the remaining matrix area and the content item awarded
slot B2 would have been filtered out from consideration (as
indicated at block 1926), the remaining content item providing the
highest bid value for slot B2 would have been determined (as
indicated at block 1928) and, accordingly awarded thereto (as
indicted at block 1930). However, as content item ID 3 filled both
matrix slots B1 and B2, steps 1924, 1926, 1928, and 1930 of the
computer-implemented method of FIG. 3 may be effectively skipped in
the present example.
[0212] Subsequently, the remaining matrix area is again determined,
as indicated at block 1932, content item slot A2 being the only
slot which remains to be filled. The content items exceeding the
remaining matrix area (that is, those content items requiring more
than one slot in the x dimension and one slot in the y dimension)
are filtered out of consideration as are those content items which
have already been awarded to a matrix slot (i.e., content item IDs
3 and 6). This is indicated at block 1934. The remaining content
item having the highest bid value for the remaining matrix slot is
subsequently determined, as indicated at block 1936, and the fourth
matrix slot is awarded thereto, as indicated at block 1938.
[0213] In the present example, content item ID 1 provides a value
of $3.00 for the remaining slot and is, accordingly, awarded
thereto. As such, the total value provided by the content items
placed in the matrix in accordance with the method of FIG. 19 and
the matrix of FIG. 10 is $4.00 +$7.00 +$3.00 or $14.00.
Methods for Price and Position Estimation for Content Items to be
Placed on a Rendered Page
[0214] As previously discussed, in the prior art methods for
determining relative placement of content items (e.g.,
advertisements and/or images) on a rendered page (e.g., a web
page), content providers are unable to view the bids that are being
placed by their competitors. As such, the only way that content
providers can determine how their bids compare to the bids being
placed by their competitors is by examining the position they are
ultimately awarded in the results listing relative to other content
providers as a result of an appropriate query.
[0215] The present invention relates to systems and methods for
estimating the relative placement position of a particular content
item based upon a proposed bid and displaying such position
estimation to a content provider. Further, the present invention
relates to systems and methods for estimating the value a content
provider would have to bid to have a high likelihood of having its
content item placed in a desired content item position and
displaying the bid pricing estimation to the content provider. The
estimation methods and systems of the present invention are
extremely valuable to content providers as they permit content
provider's to gain approximate knowledge of pricing and position
information before a page is rendered according to a given context.
Without this knowledge, the content providers generally have no
idea what the going rate is for a set of keywords and may only be
able to gather such information on their own after a long series of
trial and error.
[0216] With reference to FIG. 11, a flow diagram is illustrated
which shows a computer-implemented method 1100 for estimating the
position on a rendered page where a content item is likely to
appear in accordance with an embodiment of the present invention.
Initially, as shown at block 1110, the system receives a base bid
for placement of a bidder's content item on a rendered page.
[0217] Referring to FIG. 12, an illustrative screen display 1200 of
an exemplary user interface (UI) is shown on which such base bids
(and their associated search phrases or bid terms and match type)
may be entered or selected by a bidder and displayed. It will be
understood and appreciated by those of ordinary skill in the art
that this is only one possible visual configuration and,
accordingly, is not intended to limit the scope of the invention in
any way. A number of conceivable configurations may be presented
which permit the bidder (i.e., the content provider) to enter the
desired information and all such variations are contemplated to be
within the scope of the present invention.
[0218] Screen display 1200 includes a search phrase entry/display
area 1210, a match type indication/display area 1212, and a base
bid entry/display area 1214. The search phrase entry/display area
1210 permits a bidder (e.g., a content provider) to enter the
search phrase or bid term(s) for which it desires to place a bid.
In screen display 1200, the bidder has entered the search phrase
"Shoes". The match type indication/display area 1212 permits a
bidder to indicate in which type of match it desires the entered
search term(s) or phrase to be included. A "broad" match is
indicated in the match type indication/display area 1212 of screen
display 1200. The base bid entry/display area 1214 permits the
bidder to enter the base bid for which it wishes to receive a
position estimation for the combination of search term(s) or phrase
entered and the indicated match type.
[0219] Referring back to FIG. 11, it is subsequently determined
whether or not attribute targeting (as hereinabove described) is
desired, as shown at block 1112. If attribute targeting is not
desired, the system determines a bid value based solely on the base
bid, as indicated at block 1114.
[0220] With reference to the screen display 1200 of FIG. 12, if
attribute targeting is not desired, the bidder may select the
submit indicator 1216 (having an equal sign thereon) to indicate to
the system that it has entered all information it wishes to be
considered in the position estimation determination. Upon such user
selection, the system will determine the bid value as indicated
(FIG. 11).
[0221] Returning to FIG. 11, if attribute targeting is desired, the
system receives an indication from the user of the attributes for
which targeting is desired, as well as an indication of the bid
adjustments associated therewith. This is indicated at block
1116.
[0222] With reference again to the exemplary screen display 1200 of
FIG. 12, if the bidder desires attribute targeting, it may select
the advanced price calculator options area 1220 to view the
attributes and attribute options based upon which it may target its
bid. Once the advanced price calculator options area 1220 has been
selected, the bidder may then be presented with an additional
exemplary screen display 1300, as shown in FIG. 13.
[0223] The exemplary screen display 1300 includes a search phrase
entry/display area 1310, a match type indication/display area 1312,
and a base bid entry/display area 1314, each of which permits the
same functions and includes the same information as the similarly
delineated screen display areas of the screen display 1200 of FIG.
12. Screen display 1300 further includes an advanced price
calculator options area 1318 that is expanded from that shown in
the screen display 1200 of FIG. 12 such that it includes a number
of potential targeting attribute display areas. For instance, the
screen display 1300 of FIG. 13 includes an age group targeting
display area 1320, a gender targeting display area 1322, a daypart
targeting display area 1324, a weekday targeting display area 1326,
a country targeting display area 1328, and a metro area targeting
display area 1330. Beneath each of the targeting display areas is
an indication of the attribute options upon which the bidder has
selected targeting to be based. For instance, in the screen display
1300 of FIG. 13, the bidder has indicated in the age group
targeting display area 1320 that it wishes to target the age group
18-24, the age group 25-36 and the age group 36-50.
[0224] It will be understood and appreciated by those of ordinary
skill in the art that the potential targeting attribute display
areas illustrated in screen display 1300, as well as the attribute
options shown associated therewith, are exemplary only and are not
intended to limit the scope of the present invention in any way. It
will be further understood and appreciated that the down arrow to
the right of each of the attribute targeting display areas
indicates that upon selection thereof, the bidder may be permitted
to view a predefined list of attribute options from which it may
choose. Alternatively, the user may enter the information directly
in the attribute targeting display area, if desired.
[0225] Once the bidder has selected each of the attributes and
attribute options on which it wishes to target its bid, it may
select the submit indicator 1316 (having an equal sign thereon) to
indicate to the system that it has entered all information it
wishes to be considered in the position estimation determination.
The bidder will subsequently be returned to the screen display
shown in FIG. 12.
[0226] Returning to FIG. 11, once the system has received an
indication of all desired targeting attributes and attribute
options, a bid value for the targeted bid is determined, as
indicated at block 1118. Subsequently, the system determines a
position estimate based upon the bid value determined (whether
targeted or untargeted), as indicated at block 1120.
[0227] With reference to FIG. 14, a flow diagram is illustrated
which shows a computer-implemented method 1400 for determining a
position estimate based upon a determined bid value in accordance
with an embodiment of the present invention. Initially, as shown at
block 1410, the system receives a query from a content provider for
which the content provider would like a position estimation. For
instance, contemplate that a particular content provider submits a
query for the bid terms "running shoes" as a cost-per-click bid of
$2.00 for a broad match type.
[0228] Subsequently, as indicated at block 1412, the system
initializes the estimated click-through-rate (CTR) based on the
same assumptions that would be used if the content provider were to
place an order based on the query received. The initial CTR may be
estimated in a variety of ways, a number of which were discussed
hereinabove.
[0229] Subsequently, a listing of keywords that are likely to
compete with the received query is determined. This is indicated at
block 1414. To accomplish this, the system initially may break the
bid terms/phrases into one or more component terms/phrases (e.g.,
"Running", "Shoes", "Running Shoes"). Subsequently, the system may
locate competing keywords, e.g., by examining the query traffic for
the component terms/phrases over a past particular time frame
(e.g., one month) and finding all orders matching the component
terms/phrases over the time frame. Subsequently, as indicated at
block 1416, the system may receive information concerning
impression data for the matching component terms/phrases over the
past time frame, as well as information concerning the bid values
of, for instance, the top twenty positions for matching component
terms/phrases over the past particular time frame. This is
indicated at block 1418.
[0230] Subsequently, the system compares the proposed bid value to
the actual bid value data, as indicated at block 1420, and
determines a proposed estimated position. This is indicated at
block 1422. This system then displays the proposed estimated
position to the bidder as indicated at block 1424 of FIG. 14, as
well as block 1122 of FIG. 11.
[0231] In the illustrative screen display of FIG. 12, the estimated
position at which the bidder's content item is likely to be
displayed is indicated in the estimated position display area 1218
of screen display 1200. In this example, it is estimated that a bid
of $1.50 for the search phrase "shoes" in a broad match will permit
the bidder's content item to be displayed at position 1.4.
[0232] With reference to FIG. 17, a flow diagram is illustrated
which shows a computer-implemented method 1100 for estimating the
value a content provider would have to bid to have a high
likelihood of having its content item placed in a desired content
item position and displaying the bid value/pricing estimation to
the content provider. Initially, as shown at block 1710, the system
receives an indication from the bidder concerning in which position
it would like its content item to appear, as well as an indication
of the frequency at which it would like its content item to appear
in the desired position.
[0233] Referring to FIG. 15, an illustrative screen display 1500 of
an exemplary user interface (UI) is shown on which such desired
position information (and its associated search phrases or bid
terms and match type) may be entered or selected by a bidder and
displayed. It will be understood and appreciated by those of
ordinary skill in the art that this is only one possible visual
configuration and, accordingly, is not intended to limit the scope
of the invention in any way. A number of conceivable configurations
may be presented which permit the bidder (i.e., the content
provider) to enter the desired information and all such variations
are contemplated to be within the scope of the present
invention.
[0234] Screen display 1500 includes a search phrase entry/display
area 1510, a match type indication/display area 1512, a desired
position indication area 1514, and a desired win percentage
indication area 1516. The search phrase entry/display area 1510
permits a bidder (e.g., a content provider) to enter the search
phrase or bid term(s) for which it desires to have its content item
associated. In screen display 1500, the bidder has entered the
search phrase "Shoes". The match type indication/display area 1512
permits the bidder to indicate in which type of match it desires
the entered search term or phrase to be included. A "broad" match
is indicated in the desired match type indication/display area 1512
of screen display 1500. The desired position indication area 1514
permits the bidder to indicate the position in which it desires its
content item to be placed on the rendered page and the desired win
percentage indication area 1516 permits the bidder to indicate the
minimum frequency with which it would like its content item to
appear in the indicated position. In screen display 1500, the
bidder has indicated that it desires its content item to be placed
in position 1 at least 80% of the time.
[0235] Referring back to FIG. 17, it is subsequently determined
whether or not attribute targeting (as hereinabove described) is
desired, as shown at block 1712. If attribute targeting is not
desired, the system determines an estimated bid value/price that
the content provider must bid to attain its desired positioning and
frequency, as more fully described below. This is indicated at
block 1716.
[0236] With reference to the screen display 1500 of FIG. 15, if
attribute targeting is not desired, the bidder may select the
submit indicator 1518 (having an equal sign thereon) to indicate to
the system that it has entered all information it wishes to be
considered in the price estimation determination.
[0237] Returning to FIG. 17, if attribute targeting is desired, the
system receives an indication from the user of the attributes for
which targeting is desired. This is indicated at block 1714. With
reference again to the exemplary screen display 1500 of FIG. 15, if
the bidder desires attribute targeting, it may select the advanced
price calculator options area 1522 to view the attributes and
attribute options based upon which it may target its bid. Once the
advanced price calculator options area 1522 has been selected, the
bidder may then be presented with an additional exemplary screen
display 1600, as shown in FIG. 16.
[0238] The exemplary screen display 1600 includes a search phrase
entry/display area 1610, a match type indication/display area 1612,
a desired position indication area 1614, and a desired win
percentage indication area 1616, each of which permits the same
functions and includes the saem information as the similarly
delineated screen display areas of the screen display 1500 of FIG.
15. Screen display 1600 further includes an advanced price
calculator options area 1620 that is expanded from that shown in
the screen display 1500 of FIG. 15 such that it includes a number
of potential targeting attribute display areas. For instance, the
screen display 1600 of FIG. 16 includes an age group targeting
display area 1622, a gender targeting display area 1624, a daypart
targeting display area 1626, a weekday targeting display area 1628,
a country targeting display area 1630, and a metro area targeting
display area 1632. Beneath each of the targeting display areas is
an indication of the attribute options upon which the bidder has
selected targeting to be based. For instance, in the screen display
1600 of FIG. 16, the bidder has indicated in the weekday targeting
display area 1628 that it wishes to target the weekdays Monday,
Tuesday, and Friday.
[0239] It will be understood and appreciated by those of ordinary
skill in the art that the potential targeting attribute display
areas illustrated in screen display 1600, as well as the attribute
options shown associated therewith, are exemplary only and are not
intended to limit the scope of the present invention in any way. It
will be further understood and appreciated that the down arrow to
the right of each of the attribute targeting display areas
indicates that upon selection thereof, the bidder may be permitted
to view a predefined list of attribute options from which it may
choose. Alternatively, the user may enter the information directly
in the attribute targeting display area, if desired.
[0240] Once the bidder has selected each of the attributes and
attribute options on which it wishes its bid value/pricing estimate
to be based, it may select the submit indicator 1618 (having an
equal sign thereon) to indicate to the system that it has entered
all information it wishes to be considered in the pricing
estimation determination. The bidder will subsequently be returned
to the screen display shown in FIG. 15. Subsequently, returning to
FIG. 17, the system determines an estimated bid value/price that
the content provider must bid to attain its desired positioning and
frequency, as indicated at block 1716.
[0241] With reference to FIG. 18, a flow diagram is illustrated
which shows a computer-implemented method 1800 for determining a
bid value/pricing estimate based upon a desired content item
position and frequency in accordance with an embodiment of the
present invention. Initially, as shown at block 1810, the system
receives a query from a content provider for which the content
provider would like a bid value/price estimation. For instance,
contemplate that a particular content provider submits a query for
the bid terms "running shoes" for position 1, 80% of the time, for
a broad match type.
[0242] Subsequently, as indicated at block 1812, the system
determines a listing of keywords that are likely to compete with
the received query. To accomplish this, the system initially may
break the bid terms/phrases into one or more component
terms/phrases (e.g., "Running", "Shoes", "Running Shoes").
Subsequently, the system may locate competing keywords, e.g., by
examining the query traffic for the component terms/phrases over a
past particular time frame (e.g., one month) and finding all orders
matching the component terms/phrases over the past time frame.
Subsequently, as indicated at block 1814, the system may receive
information concerning impression data for the matching component
terms/phrases over the past time frame, as well as information
concerning the bid values for, e.g., all matching keywords that
appeared in the desired position over the past particular time
frame (as indicated at block 1816) and information concerning the
frequency with which all matching keywords appeared in the desired
position over the past particular time frame (as indicated at block
1818).
[0243] Subsequently, the system determines a proposed bid
value/price estimation, as indicated at block 1820, and displays
the proposed bid value/price estimation to the bidder. This is
indicated at block 1822 of FIG. 18, as well as block 1718 of FIG.
17.
[0244] In the illustrative screen display 1500 of FIG. 15, the
proposed bid value/price estimation is indicated in the estimated
bid value/price display area 1520. In this example, it is estimated
that a bid of $1.70 for the search phrase "shoes" in a broad match
will permit the bidder's content item to be displayed in position 1
about 80% of the time.
[0245] As can be understood, the present invention provides systems
and methods for determining the placement of content items, e.g.,
advertisements and/or images, on a rendered page, e.g., a web page,
relative to other content displayed on the page. Further, the
present invention relates to systems and methods for determining
relative placement of content items based upon bid value. Bid
values may be measured in terms of dollars paid to a hosting web
site, e.g., a search engine web site, there being various different
pricing models that may be mixed together in a principled manner to
rank content descriptors according to value. Such pricing models
may differ among content items or with regard to a single content
item as its performance is evaluated over time. One such pricing
model is a cost-per-click (CPC) pricing model under which a bid
value may be determined by multiplying a CPC bid by the
click-through-rate. The present invention further relates to
systems and methods for estimating click-through-rate based, in
part, upon observed data.
[0246] The present invention further provides systems and methods
for introducing randomness into the relative placement of content
items based upon bid value. Additionally, the present invention
provides systems and methods for determining bid values based upon
one or more targeting attributes for which a bidder may desire to
place an incrementally different bid. Further, the present
invention provides systems and methods for determining the relative
placement of content items of varying shapes and sizes based upon
bid value. The present invention further provides systems and
methods for estimating the relative placement position of a
particular content item based upon a proposed bid and displaying
such position estimate to a content provider. Additionally, the
present invention provides systems and methods for estimating the
value a content provider would have to bid to have a high
likelihood of having its content item placed in a desired content
item position and displaying the bid value/pricing estimate to the
content provider.
[0247] The present invention has been described in relation to
particular embodiments, which are intended in all respects to be
illustrative rather than restrictive. Alternative embodiments will
become apparent to those of ordinary skill in the art to which the
present invention pertains without departing from its scope.
[0248] From the foregoing, it will be seen that this invention is
one well adapted to attain all the ends and objects set forth
above, together with other advantages which are obvious and
inherent to the system and method. It will be understood that
certain features and subcombinations are of utility and may be
employed without reference to other features and subcombinations.
This is contemplated and within the scope of the claims.
* * * * *