RISK REDUCTION FOR PARTICIPANTS IN AN ONLINE ADVERTISING EXCHANGE
For a multi-party advertising exchange including advertising and publishing entities from disparate advertising networks, a framework is provided for applying insurance terms to advertising transactions in the exchange, enabling risk sensitive participants to ease their participation in a potentially volatile online advertising marketplace. Participants can use the insurance mechanism of the advertising exchange to reduce variance in expected outcome for transactions in the advertising exchange.
1 . A method of facilitating trading of advertising, comprising:
receiving an ask from at least one publisher broker for an advertisement space, wherein the at least one publisher broker represents at least one publisher that received a request for publishing inventory from a user;
receiving a bid from at least one advertiser broker for the advertisement space, wherein the at least one advertiser broker represents at least one advertiser who desires to advertise advertisements to users, wherein at least one of the at least one publisher broker and at least one of the at least advertiser broker are from disparate advertising networks; and
initiating at least one transaction based on the ask and the bid and automatically defining at least one insurance term applicable to the at least one transaction.
2 . The method of claim 1 , further comprising:
automatically offering the at least one insurance term to the at least one publisher broker or publisher to accept in connection with the at least one transaction.
3 . The method of claim 1 , further comprising:
automatically offering the at least one insurance term to the at least one advertiser broker or advertiser to accept in connection with the at least one transaction.
4 . The method of claim 1 , wherein the defining includes automatically determining a risk specified by the at least one advertiser broker or at least one publisher broker.
5 . The method of claim 1 , wherein the defining includes automatically translating a risk determined to be associated with the at least one advertiser broker or the at least one publisher broker to the at least one insurance term.
6 . The method of claim 1 , further comprising:
receiving a specification of at least one constraint and translating the at least one constraint to the at least one insurance term.
7 . The method of claim 1 , further comprising receiving disparate expressions of risk from at least one publisher broker or at least one advertiser broker and normalizing the disparate expressions to a common way to express risk for direct comparison of the disparate expressions.
8 . The method of claim 1 , further comprising:
if a publisher broker or advertiser broker accepts the at least one insurance term, automatically applying the insurance terms to the transaction on behalf of the accepting party.
9 . The method of claim 1 , further comprising:
tracking performance of transactions as a function of insurance terms applying to those transactions.
10 . A system to facilitate trading of advertising, comprising:
a publisher broker to represent at least one publisher, wherein the publisher broker determines at least one ask for an advertisement space of the at least one publisher;
an advertiser broker to represent at least one advertiser, wherein the advertiser broker manages at least one bid for the advertisement space by the at least one advertiser;
an exchange to facilitate at least one transaction for the advertisement space between the publisher broker and the advertiser broker, wherein the publisher broker and the advertiser broker are advertising entities of disparate advertising networks, and
at least one tool that receives from the publisher broker or the advertiser broker a specification of at least one risk expression applying to at least one transaction in the exchange, and wherein at least one insurance term for the at least one transaction is determined based on the at least one risk expression of the publisher broker or the advertiser broker.
11 . The system of claim 10 , wherein the exchange automatically determines and applies the at least one insurance term if the publisher broker or the advertiser broker accepts an offer according to the at least one insurance term.
12 . The system of claim 10 , wherein the tool determines a new set of at least one insurance terms when the at least one risk expression of the publisher broker or the advertiser broker is changed.
13 . The system of claim 10 , wherein the exchange automatically normalizes the at least one risk expression specified by the publisher broker or the advertiser broker to a common way to express risk within the exchange.
14 . The system of claim 10 , wherein the at least one tool receives a specification of a function of the quality of advertising involved in advertising transactions, and wherein the exchange automatically determines the at least one insurance term based on the function of the quality of advertising.
15 . The system of claim 10 , wherein the at least one tool receives a specification of a function of a size metric of other participants in advertising transactions involved in advertising transactions, and wherein the exchange automatically determines the at least one insurance term based on the function of the size metric.
16 . The system of claim 10 , wherein the at least one tool receives a specification of a function of display characteristics of the publishing inventory involved in advertising transactions, and wherein the exchange automatically determines the at least one insurance term based on the function of display characteristics.
17 . The system of claim 10 , wherein the at least one tool receives a specification of a function of the relevance of advertising involved in advertising transactions involved in advertising transactions, and wherein the exchange automatically determines the at least one insurance term based on the function of the relevance of advertising involved in advertising transactions.
18 . The system of claim 10 , wherein the at least one tool receives a specification of a function of the performance of advertising or publishing inventory involved in advertising transactions involved in advertising transactions, and wherein the exchange automatically determines the at least one insurance term based on the function of the performance of advertising or publishing inventory involved in advertising transactions.
19 . The system of claim 10 , further comprising:
an insurance provider that provides insurance services based on the at least one insurance term if the publisher broker or advertiser broker accepts the at least one insurance term.
20 . A method for facilitating transactions for advertisement space in an advertising exchange between participants from the advertising side and/or the publishing side and from at least two disparate advertising networks, comprising:
receiving at least one utility function having an impact on a risk profile of a participant with respect to conducting at least one transaction in the advertising exchange;
soliciting offers from at least one insurance provider based on the risk profile and receiving a set of insurance terms applicable to the at least one transaction for offer to the participant; and
receiving acceptance of the set of insurance terms by the participant and conducting the at least transaction applying the set of insurance terms to the at least one transaction to reduce the risk represented by the risk profile for the at least one transaction.