Georgia Patent of the Month – March 2023
The rise of programmatic advertising has enabled publishers to monetize their content by displaying ads on their web pages. However, the system is not without its limitations. Programmatic advertising has become so popular that the resources required to handle real-time bid requests and response traffic have become overwhelmed, causing network delays, poor computing and network performance, and poor overall performance. The high volume of traffic has also resulted in poor scalability, inefficient placement of ads, poor use of advertising budgets, and decreased publisher revenue.
To address these issues, PubWise LLLP has developed the PubWise system, a complex Demand Path Optimization (DPO) system that takes into account key parameters while optimizing for revenue capture on both sides of the supply chain. The system uses machine learning, such as a multi-armed bandit approach, with a continuous reinforcement learning process driving the exploration phase.
One of the primary challenges in header bidding optimization is how to approach the exploration of the optimization space. The enormous number of potential permutations makes it impractical if not impossible to explore linearly. Traditionally, ad servers relied on human intervention for testing and yield management. The PubWise system inserts machine learning directly into the ad server and the header bidding config, rendering existing systems obsolete.
The PubWise approach employs a combination of thresholds and weighting that observes the data stream to optimize on the supply path while also allowing demand source business rules to be pushed to the computing edge at the browser, resulting in a publisher-focused Supply Path Optimization (SPO). The PubWise system manages the entirety of header bidding technology for any website(s), eliminating long setup times and maximizing current strategies.
Publishers can benefit from the PubWise approach through instant configuration, discrepancy tracking, transparent across-the-board analytics, essential reporting, demand source management, and an alternative to the revenue limitations associated with the programmatic waterfall structure. The header technology only operates when a bid beats existing advertising. Using this approach, the PubWise system interacts with publishers to ensure they are no longer offering inventory to a demand source where the likelihood of strong bidding is low.
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