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Method and System for Maximizing Ad Revenues by Setting Impression Budgets in Online Advertisements Display

IP.com Disclosure Number: IPCOM000213603D
Publication Date: 2011-Dec-22
Document File: 8 page(s) / 423K

Publishing Venue

The IP.com Prior Art Database

Related People

Dinesh Garg: INVENTOR [+2]

Abstract

A method and system for maximizing ad revenues by setting impression budgets in online advertisements display. Advertisers set impression budgets rather than monetary budgets, and publishers match the incoming requests with advertisers to maximize the ad revenue. In a first scenario, a full adversarial arrival in the presence of ad fatigue is used to maximize the ad revenue. In a second scenario, an (α, β) weak adversarial arrival without any assumption on the ad fatigue is used to maximize the revenue.

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Method and System for Maximizing Ad Revenues by Setting Impression Budgets in Online Advertisements Display

Abstract

A method and system for maximizing ad revenues by setting impression budgets in online advertisements display.  Advertisers set impression budgets rather than monetary budgets, and publishers match the incoming requests with advertisers to maximize the ad revenue.  In a first scenario, a full adversarial arrival in the presence of ad fatigue is used to maximize the ad revenue.  In a second scenario, an (α, β) weak adversarial arrival without any assumption on the ad fatigue is used to maximize the revenue.

Description

In online advertisements display environment, when a web user searches for a keyword or accesses a web page, ads are displayed on the resulting we page.  However, as the user’s requests are not known in advance, it is difficult to effectively match and select ads to be displayed on the resulting web pages.  The online ad display problem is illustrated in the fig. 1.  Disclosed is a method and system for solving the online ad matching problem in the presence of ad fatigue while maximizing ad revenues by setting impression budgets in online advertisements display.

Figure 1

As illustrated in the figure, a set A of advertisers (or bidders) are interested in displaying their ads on various web pages owned by publishers.  In the online ad problem, it is assumed that each page contains a single ad-slot and the user requests for the web pages arrive in an online manner.  Each unique user (user, web page) pair is referred as a stream.  Further, it is assumed all the advertisers who are interested in showing their ads reveal their bids when a request arrives from a stream.  If an advertiser “i” is interested in bidding for a stream “j”, then the advertiser would bid for every request that arrives from the stream “j”.  However, the bid of advertiser “i” for the stream “j” would decrease as the number of requests from the stream “j” assigned to “i” increases as a result of the ad fatigue.  Thus, if the same ad is shown to the same user on the same webpage again and again then it is likely that the user would get bored or annoyed by the ad.  This response from the user when the same ad is displayed again and again is termed as ad fatigue.  The ad fatigue is perceived by an advertiser as a decay in its marginal value from every additional ad impression shown to the same stream, and hence it decrements its successive bids for a given stream.  The bidding behavior of the advertisers in the presence of such ad fatigue can be modeled through a fatigue function as shown in fig. 2.

Figure 2

The fatigue function of advertiser “i” for stream “j” is denoted by πij: R+ àR.  So if xij is the number of requests from stream j already assigned to advertiser i, then the advertiser i’s bid for which advertiser i has bid by Ns (i):= {jЄS|(i,j) ЄE}, and the set of all advertisers that...