FIXED-PRICING FOR GUARANTEED DELIVERY OF ONLINE ADVERTISEMENTS
An online system sells fixed-price advertising guaranteeing a number of impressions or a number of actions associated with an advertisement by users of the online system. The price for an advertisement associated with a guaranteed number of impressions or actions is based on a target bid amount for selecting the advertisement from a group of advertisements using a conventional pricing scheme and a predicted likelihood that the guaranteed number of impressions or actions occur. The price may be further adjusted by a premium that accounts for a risk of revenue lost by the online system for displaying an advertisement associated with a guaranteed number of impressions or a number of actions rather than conventionally-priced advertisements.
1 . A method comprising:
receiving, at an online system, information about an advertisement from an advertiser, the information including a guarantee of a number of one or more actions associated with presenting the advertisement to one or more users of the online system occurring;
determining a target bid amount associated with the advertisement, the target bid amount indicating an amount of compensation to the online system to select the advertisement from one or more advertisements for presentation to the one or more users of the online system;
determining a likelihood of at least the number of the one or more actions associated with presenting the advertisement to one or more users of the online system occurring if the advertisement is presented to the one or more users of the online system; and
determining a price for the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system based at least in part on the target bid amount associated with the advertisement and the determined likelihood.
2 . The method of claim 1 , wherein the price for the guarantee of one or more actions associated with presenting the advertisement is further based on a premium specifying a measure of risk to the online system associated with presenting the advertisement rather than an additional advertisement.
3 . The method of claim 2 , wherein the risk to the online system associated with presenting the advertisement is based at least in part on one or more selected from a group consisting of: the predicted bid amount, the determined likelihood, and any combination thereof.
4 . The method of claim 1 , wherein the information about the advertisement is selected from a group consisting of: advertisement content for the advertisement, targeting criteria for the advertisement, display times for the advertisement, and any combination thereof.
5 . The method of claim 1 , wherein the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system specifies a number of impressions of the advertisement.
6 . The method of claim 1 , wherein the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system specifies a number of interactions with the advertisement by users of the online system.
7 . The method of claim 6 , wherein the number of interactions with the advertisement by users of the online system is selected from a group consisting of: a number of times the advertisement is accessed, a number of times a preference for the advertisement is indicated, a number of installations of an application associated with the advertisement, a number of times an application associated with the advertisement is accessed, a number of purchases of a product associated with the advertisement, a number of purchases of a service associated with the advertisement, a number of views of data associated with the advertisement, a number of conversions associated with the advertisement, a number of subscriptions associated with the advertisement, a number of interactions with the advertisement, and any combination thereof.
8 . The method of claim 1 , wherein the likelihood of at least a threshold number of actions in the guarantee associated with presenting the advertisement occurring if the advertisement is presented to the one or more users of the online system is based on one or more selected from a group consisting of: advertisement content for the advertisement, targeting criteria for the advertisement, display times for the advertisement, and any combination thereof.
9 . The method of claim 1 , wherein the determined price for the advertisement is a bulk price associated with presenting the advertisement to the one or more users of the online system.
10 . The method of claim 1 , wherein determining a price for the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system comprises:
dividing the price by a number of actions associated with presenting the advertisement to one or more users of the online system.
11 . The method of claim 1 , wherein the information about the advertisement includes one or more characteristics of users of the online system eligible to be presented with the advertisement.
12 . A method comprising:
receiving, at an online system, information about an advertisement including a guarantee of a threshold number of one or more actions associated with presenting the advertisement to one or more users of the online system;
ranking a plurality of advertisements based at least in part on bid amounts associated with the advertisements;
determining a target bid amount associated with the advertisement based at least in part on the ranking, the target bid amount indicating an amount of compensation to the online system to select the advertisement for presentation to the one or more users of the online system;
determining a likelihood of at least the threshold number of actions in the guarantee associated with presenting the advertisement occurring if the advertisement is presented to the one or more users of the online system; and
determining a price for the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system based at least in part on the target bid amount associated with the advertisement and the determined likelihood.
13 . The method of claim 12 , wherein the price for the guarantee of one or more actions associated with presenting the advertisement is further based on a premium specifying a measure of risk to the online system associated with presenting the advertisement rather than an additional advertisement.
14 . The method of claim 13 , wherein the risk to the online system associated with presenting the advertisement is based at least in part on one or more selected from a group consisting of: the predicted bid amount, the determined likelihood, and any combination thereof.
15 . The method of claim 12 , wherein the information about the advertisement is selected from a group consisting of: advertisement content for the advertisement, targeting criteria for the advertisement, display times for the advertisement, and any combination thereof.
16 . The method of claim 12 , wherein the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system specifies a number of impressions of the advertisement.
17 . The method of claim 12 , wherein the guarantee of one or more actions associated with presenting the advertisement to one or more users of the online system specifies a number of interactions with the advertisement by users of the online system.
18 . The method of claim 17 , wherein the number of interactions with the advertisement by users of the online system is selected from a group consisting of: a number of times the advertisement is accessed, a number of times a preference for the advertisement is indicated, a number of installations of an application associated with the advertisement, a number of times an application associated with the advertisement is accessed, a number of purchases of a product associated with the advertisement, a number of purchases of a service associated with the advertisement, a number of views of data associated with the advertisement, a number of conversions associated with the advertisement, a number of subscriptions associated with the advertisement, a number of interactions with the advertisement, and any combination thereof.
19 . The method of claim 12 , wherein the likelihood of at least the threshold number of actions in the guarantee associated with presenting the advertisement occurring if the advertisement is presented to the one or more users of the online system is based on one or more selected from a group consisting of: advertisement content for the advertisement, targeting criteria for the advertisement, display times for the advertisement, and any combination thereof.
20 . The method of claim 12 , wherein the computed price for the advertisement is a bulk price associated with presenting the advertisement to the one or more users of the online system.