US Patent 11574358 Impression allocation system and methods using an auction that considers losing bids

A system and methods for allocating impressions using an auction comprises a delivery engine, a statistics collector, a forecasting module, and optimization engine and a direct demand source. The delivery engine receives indirect demand, direct demand and optimization information that it uses to allocate impressions and serve ads. The statistics collector is coupled to collect information from the delivery engine and input from the forecasting module. The forecasting module provides information to the optimization to smooth the rate at which direct demand is allocated. The optimization engine receives information from the statistics collector, the forecasting module and the direct demand source to produce optimization information that is used to generate bids for the direct demand. The present invention is particularly advantageous because it preserves the incentive for performance bidders to bid honestly; it eliminates adverse selection against the publisher; and it increases the efficiency and total value produced by the auction.