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Method for Charging an Advertiser for an Advertisement Based on an Impact of the Advertisement on User Experience

IP.com Disclosure Number: IPCOM000200046D
Publication Date: 2010-Sep-24
Document File: 5 page(s) / 35K

Publishing Venue

The IP.com Prior Art Database

Related People

Paritosh Malaviya: INVENTOR [+3]

Abstract

Disclosed is a method for charging an advertiser for an advertisement based on an impact of the advertisement on user experience. An advertisement may have one of a positive impact and a negative impact on the user experience.

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Method for Charging an Advertiser for an Advertisement Based on an Impact of the Advertisement on User Experience

Abstract

Disclosed is a method for charging an advertiser for an advertisement based on an impact of the advertisement on user experience.  An advertisement may have one of a positive impact and a negative impact on the user experience. 

Description

A method is disclosed for charging an advertiser for an advertisement based on an impact of the advertisement on user experience.  An advertisement may have one of a positive impact and a negative impact on the user experience. 

In an embodiment, an advertiser is charged more to show an advertisement that negatively impacts user experience.  Similarly, an advertiser is charged less to show an advertisement that positively impacts user experience.  Such mechanism to charge based on a user experience provided by an advertisement encourages advertisers to develop advertisements that impart a positive impact on the user experience while providing good return on investment for advertisers.

        

The method disclosed herein provides an auction mechanism to account for impact of advertisements on user experience, accordingly, when selecting and pricing advertisements, the auction mechanism collects charges in accordance with an impact of the advertisements on a user experience. 

The auction mechanism in a generalized form is explained as follows:

For a set of events that may follow from selecting an advertisement, let variable ei be one if event i occurs and zero if not.  Examples of events include, but are not limited to, displaying the advertisement, a click on the advertisement, and a conversion.  Let bi be a bid amount an advertiser is willing to pay if event i occurs.  Then the advertiser is willing to pay a total of:

Let pi be probability of event i.  (For the event that the advertisement is displayed, pi = 1.) The advertiser's offer has expected value

Let ci be a charge for an impact on a user experience when event i occurs.  Then the charges are applied as:

  • For each i,  is entered as the per-event i bid in the auction.
  • If the advertiser wins, charge  where ri  is auction-determined price for event i.

Then the expected payment is:

This method adjusts each per-event bid to account for the charge for that event.  But in many cases an advertiser is only willing to pay for some events, and marketplace needs to charge for the impact on user experience caused by other events.  In these cases, it is possible to achieve same expected value for the advertiser's adjusted offers in the auction and the same expected payment if the advertiser wins by shifting some charges among events.

Let d1, d2 and so on be any charges such that:

Then, the method is applied as:

·         For each i,  is entered as the per-event i bid in the auction.

·         If the advertiser wins, charge  where ri is the auction-determined price for event i.

Then the offer adjusted by d1, d2 and so on has the sa...