Managing bids in a real-time auction for advertisements

Abstract

A method and system conduct an auction for advertising across multiple markets. A first market conducts a first auction for a first advertising impression. A first bid is selected as the auction winner and a ratio is computed as the first bid plus a spread to the second highest bid. The price to be paid is the lower of the first bid or the first bid multiplied by the ratio. The first bid, second bid, and spread are transmitted to a second market for a second advertising impression auction. The second market respects the rules of the first market's auction where such that if the first bid is selected as the winner, a ratio is computed as the first bid plus the spread to the next highest bid. The price to be paid for the second impression is the first bid multiplied by the new ratio.

What is claimed is: 
     
         1 . A computer implemented method for conducting an auction for advertising comprising:
 (a) a first market conducting a first auction for a first advertising impression, wherein said first auction comprises:
 (i) receiving, at the first market, a first maximum bid, from a first advertiser, for placement of a first advertisement; 
 (ii) determining, at the first market, a second maximum bid, for placement of a second advertisement, wherein the second maximum bid comprises a next highest bid amount to that of the first maximum bid; 
 (iii) selecting the first advertisement as a first auction winner; 
 (iv) computing a first ratio comprising the first maximum bid plus a spread to the second maximum bid; and 
 (v) determining a first price to be paid by the first advertiser, wherein the first price to be paid comprises a lower of the first maximum bid or the first maximum bid multiplied by the first ratio; 
   (b) transmitting, from the first market, the first maximum bid, the second maximum bid, and the spread to a second market;   (c) the second market conducting a second auction for a second advertising impression, wherein:
 (i) determining, at the second market, a third maximum bid for placement of a third advertisement; 
 (ii) the first maximum bid is selected as a second auction winner; 
 (iii) determining a second price to be paid by the first advertiser by:
 (1) determining a second highest bid between the second maximum bid and the third maximum bid; 
 (2) computing a second ratio comprising the first maximum bid plus the spread to the second highest bid; and 
 (3) computing the second price to be paid by the first advertiser, wherein the second price comprises the first maximum bid multiplied by the second ratio; and 
 
   (d) the second market notifying the first market of the second price to be paid.   
     
     
         2 . The method of  claim 1 , wherein the first auction comprises an asynchronous auction wherein bids are placed ahead of an actual occurrence of an impression. 
     
     
         3 . The method of  claim 1 , wherein the first maximum bid comprises a bid that has been converted to a predicted cost per thousand impressions (CPM) bid. 
     
     
         4 . The method of  claim 1 , wherein the third maximum bid comprises an internal reserve default bid. 
     
     
         5 . The method of  claim 1 , wherein the third maximum bid comprises a highest bid received from multiple third party bidders. 
     
     
         6 . The method of  claim 1 , wherein the second market notifies the first market when redirecting an impression back to the first market. 
     
     
         7 . The method of  claim 1 , wherein the second market notifies the first market using a pixel or server side message. 
     
     
         8 . A system for conducting an auction for advertising comprising:
 (a) a first market configured to conduct a first auction for a first advertising impression, wherein said first auction comprises:
 (i) receiving, at the first market, a first maximum bid, from a first advertiser, for placement of a first advertisement; 
 (ii) determining, at the first market, a second maximum bid, for placement of a second advertisement, wherein the second maximum bid comprises a next highest bid amount to that of the first maximum bid; 
 (iii) selecting, at the first market, the first advertisement as a first auction winner; 
 (iv) computing, at the first market, a first ratio comprising the first maximum bid plus a spread to the second maximum bid; and 
 (v) determining, at the first market, a first price to be paid by the first advertiser, wherein the first price to be paid comprises a lower of the first maximum bid or the first maximum bid multiplied by the first ratio; 
   (b) a second market configured to:
 (i) receive, from the first market, the first maximum bid, the second maximum bid, and the spread to a second market; 
 (ii) conduct a second auction for a second advertising impression, wherein:
 (1) determining, at the second market, a third maximum bid for placement of a third advertisement; 
 (2) the first maximum bid is selected as a second auction winner; 
 (3) determining a second price to be paid by the first advertiser by:
 (A) determining a second highest bid between the second maximum bid and the third maximum bid; 
 (B) computing a second ratio comprising the first maximum bid plus the spread to the second highest bid; and 
 (C) computing the second price to be paid by the first advertiser, wherein the second price comprises the first maximum bid multiplied by the second ratio; and 
 
 
 (iii) notify the first market of the second price to be paid. 
   
     
     
         9 . The system of  claim 8 , wherein the first auction comprises an asynchronous auction wherein bids are placed ahead of an actual occurrence of an impression. 
     
     
         10 . The system of  claim 8 , wherein the first maximum bid comprises a bid that has been converted to a predicted cost per thousand impressions (CPM) bid. 
     
     
         11 . The system of  claim 8 , wherein the third maximum bid comprises an internal reserve default bid. 
     
     
         12 . The system of  claim 8 , wherein the third maximum bid comprises a highest bid received from multiple third party bidders. 
     
     
         13 . The system of  claim 8 , wherein the second market notifies the first market when redirecting an impression back to the first market. 
     
     
         14 . The system of  claim 8 , wherein the second market notifies the first market using a pixel or server side message. 
     
     
         15 . A computer implemented method for conducting an auction for advertising comprising:
 (a) a first market conducting a first auction for a first advertising impression, wherein said first auction comprises:
 (i) receiving, at the first market, a first maximum bid, from a first advertiser, for placement of a first advertisement; 
 (ii) determining, at the first market, a second maximum bid, for placement of a second advertisement, wherein the second maximum bid comprises a next highest bid amount to that of the first maximum bid; 
 (iii) selecting the first advertisement as a first auction winner; 
 (iv) computing a first ratio comprising the first maximum bid plus a spread to the second maximum bid; and 
 (v) determining a first price to be paid by the first advertiser, wherein the first price to be paid comprises a lower of the first maximum bid or the first maximum bid multiplied by the first ratio; 
   (b) transmitting, from the first market, the first maximum bid, the second maximum bid, and the spread to a second market;   (c) the second market conducting a second auction for a second advertising impression, wherein:
 (i) determining, at the second market, a third maximum bid for placement of a third advertisement; 
 (ii) the first maximum bid is selected as a second auction winner; 
 (iii) determining a second price to be paid by the first advertiser by:
 (1) determining a second highest bid between the second maximum bid and the third maximum bid; 
 (2) computing a fixed percentage of the spread between the first highest bid and the second highest bid; and 
 (3) computing the second price to be paid by the first advertiser based on the fixed percentage; and 
 
   (d) the second market notifying the first market of the second price to be paid.   
     
     
         16 . The method of  claim 15 , wherein the second price to be paid by the first advertiser comprises the fixed percentage. 
     
     
         17 . The method of  claim 15 , wherein the second price to be paid by the first advertiser comprises a lesser of (a) the fixed percentage above the price of the second highest bid and (b) the first bid. 
     
     
         18 . The method of  claim 15 , wherein the second price to be paid by the first advertiser comprises the fixed percentage plus a fixed amount. 
     
     
         19 . A system for conducting an auction for advertising comprising:
 (a) a first market configured to conduct a first auction for a first advertising impression, wherein said first auction comprises:
 (i) receiving, at the first market, a first maximum bid, from a first advertiser, for placement of a first advertisement; 
 (ii) determining, at the first market, a second maximum bid, for placement of a second advertisement, wherein the second maximum bid comprises a next highest bid amount to that of the first maximum bid; 
 (iii) selecting, at the first market, the first advertisement as a first auction winner; 
 (iv) computing, at the first market, a first ratio comprising the first maximum bid plus a spread to the second maximum bid; and 
 (v) determining, at the first market, a first price to be paid by the first advertiser, wherein the first price to be paid comprises a lower of the first maximum bid or the first maximum bid multiplied by the first ratio; 
   (b) a second market configured to:
 (i) receive, from the first market, the first maximum bid, the second maximum bid, and the spread to a second market; 
 (ii) conduct a second auction for a second advertising impression, wherein:
 (1) determining, at the second market, a third maximum bid for placement of a third advertisement; 
 (2) the first maximum bid is selected as a second auction winner; 
 (3) determining a second price to be paid by the first advertiser by:
 (A) determining a second highest bid between the second maximum bid and the third maximum bid; 
 (B) computing a fixed percentage of the spread between the first highest bid and the second highest bid; and 
 (C) computing the second price to be paid by the first advertiser based on the fixed percentage; and 
 
 
 (iii) notify the first market of the second price to be paid. 
   
     
     
         20 . The system of  claim 19 , wherein the second price to be paid by the first advertiser comprises the fixed percentage. 
     
     
         21 . The system of  claim 19 , wherein the second price to be paid by the first advertiser comprises a lesser of (a) the fixed percentage above the price of the second highest bid and (b) the first bid. 
     
     
         22 . The system of  claim 19 , wherein the second price to be paid by the first advertiser comprises the fixed percentage plus a fixed amount.