Samsung patents ad bidding system that adjusts prices based on risk and uncertainty
This patent describes a method for a demand side platform (DSP) to automatically bid on digital ad space. It calculates a bid price by weighing the remaining budget, the chance a user will click the ad, and a 'risk tendency' value derived from how much of the budget is left. The system adjusts the value of each ad impression based on these factors before sending the bid to an ad exchange.
In the filing’s own words
A method of operating a demand side platform (DSP) includes determining a current state of the DSP, wherein the current state of the DSP is based on a remaining bid budget and remaining number of opportunities, receiving, at the DSP, a bid request for one or more advertisement impressions, and determining an uncertainty of a predicted user response probability. The method further includes determining a risk tendency value based on the current state of the DSP, determining an adjusted value of the one or more advertisement impressions based on the uncertainty and risk tendency, determining a bid price for each of the one or more advertisement impressions based on the adjusted value of the one or more advertisement impressions, transmitting the bid price to an exchange platform to participate in an auction, receiving an auction result and updating the current state of the DSP based on the auction result.
What exactly they claim (claim 1)
1. A method of operating a demand side platform (DSP) running within a processing platform performing automatic bidding on advertisement impression auctions with an auction sequence, the method comprising: to enhance speed and efficiency in use of computational cycles for bid determination by the processing platform, for each auction within the auction sequence: determining, by the DSP, a current state of the DSP stored within the processing platform, wherein the current state of the DSP is based on a remaining bid budget, a remaining number of bid opportunities for auctions within the auction sequence, and an extent to which the DSP has won prior auctions; receiving, at the DSP from an ad exchange platform over a network to which the processing platform is connected, a bid request for one or more advertisement impressions offered in one auction within the auction sequence; determining, in the DSP, an uncertainty of predicted user response metrics predicted by the DSP to quantify user reactions to the one or more advertisement impressions; determining, in the DSP, a risk tendency value based on the current state of the DSP; determining, in the DSP, an adjusted value of the one or more advertisement impressions based on the uncertainty and the risk tendency value; determining, in the DSP, a bid price for each of the one or more advertisement impressions based on the adjusted value of the one or more advertisement impressions; transmitting the bid price by the DSP over the network to the ad exchange platform to participate in the one auction within the auction sequence; receiving, at the DSP from the ad exchange platform over the network, an auction result for the one auction within the auction sequence; and updating the current state of the DSP stored within the processing platform based on the auction result.
Facts
- Company
- Samsung (Samsung Electronics Co., Ltd.)
- Official title
- System and methods for bid optimization in real-time bidding
- Patent number
- US12770054B2
- Application number
- 17676687
- Filed
- Feb 21, 2022
- Granted
- Oct 20, 2026
- Inventors
- 6
- Claims
- 20
Classified under
G06N 20/00 Physics & computingG06Q 30/0283 Physics & computingG06Q 30/08 Physics & computingMore from Samsung in AI & software
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Summaries are simplified from the filing’s own abstract and first claim. A patent filing is not a product announcement.
Patent data and drawings: U.S. Patent and Trademark Office (USPTO). Nebula is not affiliated with or endorsed by the USPTO.