Rockstar Consortium US LP et al v. Google Inc

Filing 92

MOTION for Leave to File A Supplemental Brief In Response To Googles Motion To Transfer In Light Of Newly-Acquired Evidence by NetStar Technologies LLC, Rockstar Consortium US LP. (Attachments: # 1 Text of Proposed Order Granting Motion for Leave to File a Supplemental Brief In Response to Google's Motion to Transfer in Light of Newly-Acquired Evidence, # 2 Supplement Plaintiffs' Supplemental Brief In Response to Google's Motion to Transfer, # 3 Affidavit of Amanda Bonn In Support of Plaintiffs' Supplemental Brief In Response to Google's Motion to Transfer, # 4 Exhibit 1, # 5 Exhibit 2, # 6 Exhibit 3, # 7 Exhibit 4, # 8 Exhibit 5, # 9 Exhibit 6, # 10 Exhibit 7, # 11 Exhibit 8, # 12 Exhibit 9, # 13 Exhibit 10, # 14 Exhibit 11, # 15 Exhibit 12, # 16 Exhibit 13, # 17 Exhibit 14, # 18 Exhibit 15, # 19 Exhibit 16, # 20 Exhibit 17, # 21 Exhibit 18, # 22 Exhibit 19, # 23 Exhibit 20, # 24 Exhibit 21, # 25 Exhibit 22, # 26 Exhibit 23, # 27 Exhibit 24, # 28 Exhibit 25, # 29 Exhibit 26, # 30 Exhibit 27, # 31 Exhibit 28, # 32 Exhibit 29, # 33 Exhibit 30)(Bonn, Amanda)

Exhibit 3

Patent WO1997021183A1 - Method and system for placing advertisements... Page 1 of 28

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Method and system for placing advertisements
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Publication number
Publication type
Application number
Publication date
Filing date
Priority date

WO1997021183 A1
Application
PCT/US1996/019509
Jun 12, 1997
Dec 6, 1996
Dec 8, 1995

Also published as

CA2240009A1, EP0954797A1

Inventors

Tomasz Imielinski, Shamin Abbas Naqvi

communication with the computer network. The advertisements on the server

Applicant

Bell Communications Res

are not tied to any particular page containing information on the network, but

Export Citation

BiBTeX, EndNote, RefMan

rather, are retrieved in response to a query entered by the user (17) and

Patent Citations (3), Non-Patent Citations (2), Referenced by (212),
Classifications (6), Legal Events (11)

WO 1997021183 A1
ABSTRACT
A method and system for placing advertisements in a computer network. A
server containing a collection of advertisements is placed in electronic

dynamically mixed with the content of the pages returned in response to the
query (16). The present invention displays the content pages with focused,

External Links: Patentscope, Espacenet

targeted advertisements as a part of the page, in accordance with a particular
layout. The advertisements can be made to satisfy a set of constraints (19) requested by the advertiser, as well as the constraints of the publisher of the page. The
system uses contracts (21) to specify the marketing rules (18) that link ads with specific queries, to permit advertisers to target a specific audience, and to
guarantee a certain amount of exposure of the advertisement in prime advertising space. Algorithms are used to check for contract consistency to ensure that all
contracts that are accepted can be properly satisfied. The present invention also provides a download delay-time advertising feature.

DESCRIPTION (OCR text may contain errors)
METHOD AND SYSTEM FOR PLACING ADVERTISEMENTS IN A
COMPUTER NETWORK
NOTICE OF COPYRIGHTED MATERIAL IN DISCLOSURE
A portion of the disclosure of this patent document contains material which is
subject to copyright protection. The copyright owner has no objection to the
facsimile reproduction by anyone of the patent document or the patent

CLAIMS (OCR text may contain errors)
WHAT IS CLAIMED IS:
1. A system for advertising on a computer network, comprising: a server
containing a plurality of advertisements; means for electronically
connecting the server to a computer network; and means for selecting and
retrieving an advertisement from said server in response to a query entered
on said network.

disclosure, as it appears in the Patent and Trademark Office patent file or

2. The system for advertising as set forth in claim 1, wherein said selecting

records, but otherwise reserves all copyright rights whatsoever.

means comprises means for ensuring that a selected advertisement is

BACKGROUND OF THE INVENTION Field of the Invention
The present invention relates generally to advertising and, in particular, to a
method and system for placing advertisements in a computer network, such as
a wide area network or a metropolitan area network.
Description of the Prior Art

relevant to the query.
3. The system for advertising as set forth in claim 1, further comprising a
mixer means for combining a retrieved advertisement with a content page
returned by the computer network in response to the query.
4. The system for advertising as set forth in claim 1, further comprising a
prime space manager means for controlling when the advertisements

A number of information services are currently offered on wide area public

contained on said server are selected by said selecting means, said control

networks, such as the Internet. The basic model of these services is that a

being based upon respective advertiser contracts associated with each of

query is processed and a set of answers is returned. For example, a number of

said advertisements.

yellow page searchable directories have been developed in which users can
query categories of products or services (e.g., new car dealers) and the system
returns a set of vendors satisfying the query.

5. The syεtem for advertising as set forth in claim 1, further comprising a
local client means for displaying a retrieved advertisement only during a
download delay time period in which a user is waiting for a content page to

One problem with these services is determining who should subsidize the end

be downloaded in response to the query. 6. The system for advertising as

user's cost of using the services. One way of providing such a subsidy is

set forth in claim 1, further comprising means for calculating a search time

through the use of advertisements. Public networks, such as the Internet, are

estimation for the query, and means for combining a page containing said

starting to see random use of advertisements. For example, some search

search time estimation and a retrieved advertisement .

engines used in public networks are sponsored by a single vendor or company.
The sponsoring vendor or company will often have an advertisement displayed
on a user's computer screen during use of the search engine. Other search
engines display randomly selected advertisements from a fixed set of
advertisements.

7. The system for advertising as set forth in claim 1, further comprising
means for determining a geographic location of a user that entered the
query, and means for selecting an advertisement based upon the user's
geographic location.

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As one example, a number of services on the World Wide Web ("WWW") are

8. A method for advertising on a computer network, comprising the steps

currently using ad hoc means of advertising. That is, when a user uses certain

of: placing a plurality of advertisements on a server; placing the server m

search engines for conducting a search, the user will be shown advertisements

electronic communication w th a computer network; selecting an

while doing the searching. These advertisements are sometimes referred to as

advertisement on said server in response to a query entered on said

"banner" advertisements because they simulate a banner that the user sees as

network; and retrieving the selected advertisement from said server for

the user is traveling down a "road" on the computer network. These

display to a user.

advertisements are typically tied to a particular search page that the user
encounters during the search. The current state of the art is such that when the
user uses a search engine, a randomly selected advertisement is shown as if it
is part of the search page. For example, the user may enter a search request to

9. The method for advertising as set forth in claim 24, further comprising
the step of combining the retrieved advertisement with a content page
returned by the computer network m response to the query.

see a home page on cooking and, as a part of that page, the existing systems

10. The method for advertising as set forth in claim 24, further comprising

might display an advertisement about cars. This is a problem, of course,

the step of controlling when the advertisements on the server are selected

because there is no connection made between the content of the

based upon respective advertiser contracts associated with each of the

advertisements or the message of the advertisements and what the user is

advertisements . 11. The method for advertising as set forth in claim 24,

actually searching. Another problem with the current state of the art is that there

further comprising the step of displaying the retrieved advertisement only

is no guarantee associated with the advertisements that they will be shown a

during a download delay time period in which a user is waiting for a content

certain number of times or in a certain place on the page with respect to the

page to be downloaded in response to the query.

other pieces of data on that page. For these reasons, the existing systems for
placing advertisements on computer networks, such as the Internet, fail to take

- 5i

full advantage of the interactive/demand driven environment of the online
medium.
SUMMARY OF THE INVENTION
It is thus an object of the present invention to provide an improved method and system for advertising on a computer
network, particularly a wide area or metropolitan area network, which overcomes the above described problems of existing
advertising systems.
It is a further object of the present invention to provide an effective advertising medium that anyone with a personal
computer can use to advertise on computer networks .
It is a further object of the present invention to provide a method and system for advertising in which advertisements are
more informative and provide a direct link to additional information about the advertised product or service or about the
advertiser.
It is a further object of the present invention to provide a method and system for advertising on a computer network in
which advertisements are more focused and targeted, for example, by user queries and user profiles, including the past
history of the user's interactions with the system.
It is a further object of the present invention to provide a method and system for advertising in which new online publishers
can be created with little effort.
It is a further object of the present invention to provide a method and system for advertising in which advertisers can be
guaranteed that their advertisements will be displayed a certain number of times or in a particular manner or under
particular circumstances.
Additional objects, advantages and novel features of the invention will be set forth in the description which follows, and will
become apparent to those skilled in the art upon reading this description or practicing the invention. The objects and
advantages of the invention may be realized and attained by the appended claims. The present invention provides a new
process and system for online advertising. This new process will be referred to throughout this application as query-based
advertising ("QBA") . In the QBA process, advertisements are primarily triggered by user queries. User queries, as used
herein, refer to requests from an information consumer for one or more pages of information from a computer network. As
a result of a query, a user is exposed to advertisements with the present invention, i.e., the query triggers advertisements.
In accordance with the present invention, a server containing a collection of advertisements is placed in electronic
communication with a computer network. The computer network is preferably a wide area network, such as the Internet, or
a metropolitan area network. As used in this application, the phrase "computer network" refers to any public or private data
communications network.
The advertisements on the server are not tied to any particular page containing information on the computer network.
Rather, the advertisements are contained on the server, distinct from the pages that may or may not later carry the
advertisements. The pages by themselves have no advertisements. Thus, the pages are analogous to a newspaper or
magazine devoid of any advertisements.
When the user requests a certain page or a certain topic of information, the relevant pages are retrieved from the
computer network and shown to the user. The present invention, upon receiving the user's request, retrieves
advertisements that are related to the user's action, dynamically mixes the advertisements with the content of the pages

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according to a particular layout, and displays the pages with focused, targeted advertisements as a part of the page. The
advertisements can be made to satisfy a set of constraints requested by the advertiser, as well as the constraints of the
publisher of the page, as further discussed below. The advertisement triggering mechanism of the present invention is not
random or coincidental, but rather, is prespecified in advance. This specification will be referred to in this application as a
contract. A contract specifies the marketing rules that link advertisements with specific queries. For example, a diet soft
drink advertisement may be shown when a user asks for a page about exercising equipment. These rules are specified by
advertisers implementing the concept of "focus" or "relevance" of advertisements and help the advertisers to target a
specific audience. Owners of pages specify the focus content of their pages through special tags within a page. These
tags are not displayed to the information consumer; the tags are used to decide what advertisement can be shown when
the page is requested by a consumer. The notion of a contract, however, goes well beyond just marketing rules. First of
all, the advertising space on the online medium, although technically unlimited, is severely restricted by the user's attention
span. Placing advertisements on the first page which constitutes the answer to a query gives the advertisements much
higher probability to be seen than on later pages of the answer. This is analogous to a certain extent, to newspaper
advertising where advertising on the first page of the newspaper is more expensive than on the last page of the
newspaper. Thus, the present invention introduces the concept of prime space as a part of the QBA. Prime space will be
used in this application to refer to limited advertising space on the first page of the answer to a query. Prime space is, in
principle, as attractive as prime time television. Prime space, like prime time, is limited so it may be impossible to show all
the relevant advertisements in prime space.
As a solution to the prime space limitations, the present invention provides guarantees to advertisers through the use of
contracts . The contracts provide tools to specify such guarantees and to enforce them. Specifically, the present invention
provides the following types of guarantees (or "contracts") to advertisers:
1. Ratio-based: The ad will be shown in prime space no less than a certain percentage of the times a relevant query is
made by a searcher. 2. Exclusive or Competitive: Ad A is never to be shown in prime space when ad B is shown. 3.
Dependent: Ad A is to be shown with a predetermined probability when ad B is shown in prime space. 4. Story: An ad
consisting of several sub-ads will be shown in prime space in sequence to a consumer. 5. Frequency-based: The ad will
be shown in prime space a certain number of times in a given time period (e.g., 100 times per month) . Additionally, the
contracts may also specify the type of layout used to mix ads together with the data. This may include the layout types,
and so forth.
The present invention also provides means for determining whether there are any contracts that cannot be satisfied. For
example, if the prime space is sufficient to hold only two ads, it is impossible to guarantee 100% ratio for more than two
ads. Similarly, if ad A is never to be shown when ad B is shown and if both ad A and ad B are equally relevant according
to focus matching, then it is impossible to guarantee ratios above 50% for both ads A and B.
The present invention uses algorithms to check for contract consistency to ensure that all contracts that are accepted can
be properly satisfied. An advertiser can ask for a certain contract (e.g., 5% relative coverage in prime space) and the
present invention will determine whether that contract can be satisfied. If not, the system suggests what coverage it can
provide. After the contract is determined to be consistent, the present invention will enforce the contract by displaying
advertisements in accordance with the contract.
A consequence of QBA is that ads cannot be placed on pages a priori because it is the query that determines what ads
are to be placed on a page. This is referred to as dynamic advertising. The query asks for a page that has a focus. Ads
that are resident in the system are checked to determine which ads can potentially be placed on the page in question. This
decision is based on matching the focus of a page with the focus of the ad. When not all matching ads can be placed on a
page because of space limitations, the contract enforcement feature of the present invention ensures that the ads that are
placed on the page are consistent with the contracts signed by the system with the advertiser.
Another consequence of QBA is that it must be determined where to place an advertisement on a page. Currently, pages
on the WWW have a fixed a priori agreed upon area on a page for advertising. The present invention, however,
dynamically determines where an advertisement should be placed. The present invention permits owners of pages to be
free to organize the layouts of their pages. The page owner makes the final determination of where an advertisement
should or should not be placed. Once the page is organized, the page owner can specify where an advertisement can be
placed by placing a special tag ("ad space") on their page. Like the focus tag, this ad space tag is not visible to the
consumer. It is a directive to the advertising system that the tag denotes space available for advertising, i.e., the tag can
be thought of as a billboard stating "this space available for advertising."
The present invention also provides a download delay- time advertising feature. Most consumers on computer networks,
such as the Internet, experience a delay from the moment they ask for a page to the time the page is downloaded to their
browser. This delay may be caused, for example, by traffic congestion on the WWW. This delay time will be referred to as
download delay-time.
The present invention uses the download delay-time to display ads to the consumer. This will be referred to as down-load
delay time advertising. The time that the consumer would have waited for a page to be downloaded is utilized to expose

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the consumer to ads. Once a page (or a subpart of the page) has been downloaded to the consumer's browser and is
available to be displayed, the ads are replaced by the page content. The consumer does not experience a delay due to
advertising by the present invention. Only the preexisting delay time is utilized by the advertising system. In summary, the
present invention provides a system and method for advertising on a computer network, comprising a server containing a
plurality of advertisements, means for electronically connecting the server to a computer network, and means for selecting
and retrieving an advertisement from the server in response to a query entered on the network. The selecting means
comprises means for ensuring that a selected advertisement is relevant to the query. A mixer means is provided for
combining a retrieved advertisement with a content page returned by the computer network in response to the query. The
mixer means comprises a layout manager means for computing an optimum layout of a combined page containing the
retrieved advertisement and the content page. The mixer means also comprises a typography manager means for
detecting special tags and HTML rules in the content page and for determining which part of the content page the selected
advertisement can be displayed on. The content page is provided by a home page dispatcher, a search engine, or a
generic HTML content provider in response to the query.
A transaction means is provided for permitting a user to make a transaction with the advertiser by interacting with the
displayed advertisement. A prime space manager means is provided for controlling when the advertisements contained on
the server are selected by the selecting means, the control being based upon respective advertiser contracts associated
with each of the advertisements. An ad placement means is provided for placing new advertisements on the server, the ad
placement means having means for entering an advertiser contract for each advertisement placed on the server and
means for checking a new advertiser contract for consistency with existing advertiser contracts. A local client means is
provided for displaying a retrieved advertisement only during a download delay time period in which a user is waiting for a
content page to be downloaded in response to the query. A means for refreshing a displayed advertisement after a
predetermined time period of inactivity by the user, and a means for replacing a displayed advertisement with a
downloaded content page as soon as the content page is received by the client are also provided. The system includes
means for calculating a search time estimation for the query, and means for combining a page containing the search time
estimation and a retrieved advertisement. The system also includes means for determining a geographic location of a
user, and means for selecting an advertisement based upon the user's geographic location.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will become more clearly appreciated as the disclosure of the present invention is made with
reference to the accompanying drawings, wherein: Fig. 1 is a schematic diagram providing a general overview of the main
components of the present invention. Fig. 2 is a flow chart showing a process of placing advertisements on content pages
provided by yellow page publishers of a computer network.
Figs. 3A-3D are screen prints showing page views displayed during various steps in the process of Fig. 2.
Fig. 4 is a flow chart showing the process performed by the layout manager of the present invention.
Fig. 5 is a flow chart showing the process performed by the parser of the present invention. Fig. 6 is a flow chart showing
the process performed by the mixer and ad selector of the present invention.
Fig. 7 is a flow chart showing a process of placing targeted advertisements in online pages provided by a home page
publisher of a computer network. Figs. 8A-8C are screen prints showing page views displayed during various steps in the
process shown in Fig. 7.
Figs. 9A and 9B are flow charts showing a billing system process according to the present invention. Fig. 10 is a flow chart
showing the steps of an ad placement process according to the present invention.
Fig. 11 is a flow chart showing the steps of a page placement process according to the present invention.
Fig. 12 is a schematic showing the architecture of a transaction system according to the present invention.
Figs. 13A and 13B are screen prints showing page views displayed during various steps in a transaction process of the
present invention.
Fig. 14 is a flow chart showing the steps of the transaction process according to the present invention. Fig. 15 is a diagram
chart showing the process performed by the prime space manager component of the present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Reference will now be made in detail to a preferred embodiment of the invention, an example of which is illustrated in the
accompanying drawings.
Fig. 1 provides a general overview or space architecture of the main components of the present invention. The layout
manager 10 is primarily responsible for the computation of the layout of a page to be displayed to a client. Other modules
of the system compute the necessary data that is to be displayed, as described below. The layout manager 10 then
accepts this data from the other modules and computes the optimum layout for the display.

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The layout manager 10 uses two sub-components to determine the optimum layout; a rule base and a layout data base
within the layout manager (collectively shown as the layout rules component 11 in Fig. 1) . The layout data base contains a
collection of templates that have been predefined and stored in the layout data base. The rule base contains a collection of
rules defined by the user or by the placer of the layout manager to ascertain which layout templates are best under what
set of conditions. When the layout manager 10 receives the data to display, it invokes various rules in the layout rules to
figure out which rule to trigger and, hence, decides on one layout as being the best under the present set of conditions.
The variables used in the rules are the amount of data that is to be displayed, the kind of data that is to be displayed, the
amount of text, the amount of advertising material, and the size of the various maps and multi-media icons that are to be
displayed. Based on these variables, the rules are checked and one or more rules are picked as delineating the best
layout that can be found. The layout manager 10 then arbitrarily picks one of the rules that it thinks are the best and picks
that layout, inserts the data given to it in the layout template, and gives the final product to the client to be displayed. The
variables that are expressed in the rules are based on a number of parameters including the size of the text, the amount of
text, the size of the maps, the size of the images, and the size of the advertisement. In principle, there is no limit as to the
number of parameters that one can achieve using the layout manager 10. The rules are preferably expressed in a
programming language general enough to take any other parameters that one may desire to furnish.
The layout rules are constructed based on various parameters. The layout rules are then checked and used to pinpoint the
exact template to be used for a certain kind of data situation. The template is then filled in by the layout manager 10 to
provide a display to the client. Next, the segmenter 12 will be described. The segmenter 12 is responsible for analyzing an
HTML page and for extracting the relevant data from the HTML page. The purpose of the segmenter 12 is that, if the
system is given a page constructed by another component or by some other content provider, the segmenter 12 will try to
find reasonable places within that page where a certain advertisement could be inserted dynamically. The segmenter 12
uses various rules for finding advertising space within a page, and for preventing the essential layout of the page from
being disturbed. In particular, the segmenter 12 looks for certain special tags inserted by the designer of the HTML page
and replaces those special tags with advertisements or other types of information that it has been given. The segmenter
12 then looks at the page, decides where to insert ads, and provides that information to the layout manager 10. In most
instances, the typography manager 14 is the main input device to the layout manager 10. One exception to this will be
described later. The typography manager 14 ' s role is to "render" the page. By rendering the page it is meant that the
typography manager 14 takes various kinds of input that has to go on a page and decides which part of the information
has to go on the page and which part of the information could in fact be deleted. Thus, the typography manager 14 is
similar in function to a typographer in a traditional publishing situation. The typography manager 14 has the final say in
what data gets sent to the layout manager 10. The typography manager 14 also detects special tags and special HTML
rules that tell it where the markups of the HTML page are supposed to happen. Ultimately, the layout manager 10 and the
typography manager 14 collaborate on coming up with a page. This page in its final form is then passed to the gate 15.
The gate 15 transfers a page from the system of the present invention to the client. The gate 15, therefore, provides the
gate between the client and the server. The gate 15 gives the page that it wants to display to the WWW Daemon 16 and
the Daemon interacts in turn with the client
17 on the user's side.
The above description has explained how the layout manager 10, the segmenter 12, the typography manager 14, and the
gate 15 operate. Before describing in detail the remaining components of the system, an example flow of a request
through the system will be explained.
Initially, a user requests a particular piece of information through one of the clients 17. The user's request is given to the
WWW Daemon 16, which passes the information to the gate 15. The gate 15 at this point decides what piece of
information is being requested by the user and finds other relevant pieces of information that can be commingled with what
the user has asked. The user, for example, might ask the system to see certain car dealers, to find a phone number of a
car dealer, or to get a page of a particular magazine.
The gate 15 at this point gives the request to the matching rule engine 18 ("MRE") . The purpose of the MRE 18 is to look
at the content of the user's query and to find a category within its active index SIC 19 that matches the same type. If the
user has asked for car dealers, the MRE
18 invokes its rules to determine that car dealers are part of a class of things relating to transportation. Based on the
classification determined by the MRE 18, the system now knows that the user is asking about cars or about transportation
or about whatever else that the user might be interested in.
The MRE 18 at this point then returns to the gate 15 the category index of the user's query. If the user had asked about
cars or about family sedans or about sports cars, at this point the MRE 18 would have figured out that the user's interest
falls into a certain category. Based on the user's interest category, the system then retrieves the advertisements that are
relevant to that category. Thus, the purpose of the MRE 18 is to figure out what the user requested, to place the user's
request in a category of a classification system (i.e., the active index SIC 19) and, based on that classification, to retrieve

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relevant advertisements. At this point there may be several hundred related advertisements retrieved from the category
containing the user's request. This creates a problem in that there will be many more advertisements related to the user's
request than can possibly be shown to the user on the first page of information. At this point, the prime space manager 20
comes into play. The purpose of the prime space manager 20 is to prioritize the advertisements that are to be shown to
the user.
For example, if there is only room for five advertisements and the MRE 18 returns a list of 500 possible advertisements to
show, the system must determine which five of the ads to show. The operation of the prime space manager 20 is based on
a set of contracts that were accepted when the advertisers placed their advertisements with the system. The system
supports the following five basic types of contracts : 1. Ratio-based: The ad will be shown in prime space no less than a
certain percentage of the times a relevant query is made by a searcher.
2. Dependent: Ad A is to be shown with a predetermined probability when ad B is shown in prime space.
3. Exclusive or Competitive: Ad A is never to be shown in prime space when ad B is shown. 4. Story: An ad consisting of
several sub-ads will be shown in prime space in a particular sequence to a consumer.
5. Frequency-based: The ad will be shown in prime space a certain number of times in a given time period (e.g., 100 times
per month) . Additionally, the contracts may also specify the type of the layout used to mix ads together with the data. This
includes the layout types, and so forth. The various contracts used by the system will now be discussed in more detail .
The ratio-based contracts are used where an advertiser wants the advertisement to be displayed a certain percentage of
the time in prime space. In other words, when a query is received that is related to the business of the advertiser, the
advertiser is guaranteed that its advertisement will be on the first screen of information displayed to the user a certain
percentage of the time (e.g., 15% of the time) . This percentage is called the coverage guarantee. The ratio-based contract
provides a coverage guarantee to the advertiser that its advertisement will be displayed X% of the time for every relevant
query.
This guarantee is probablistic in nature, so that over the long run of the system, the probability will converge to the
percentage that the advertiser has requested.
The second kind of contract that the system supports is referred to as a dependent contract. The dependent contract
guarantees that one advertiser's ad can be shown in conjunction with another advertiser's ad on the same screen. For
example, a travel destination advertisement
(e.g., "Come to the Bahamas") can be shown on the first screen of information together with a credit card advertisement
(e.g., "Pay for your ticket through VISA") . With this type of contract, the system can support contracts that satisfy the
needs of two or more advertisers at the same time . The third type of contact supported by the system is called an
exclusive or competitive contract. This type of contract can be used to guarantee that an advertiser's ad is not shown at
the same time or on the same page as a competitor's advertisement. For example, a beverage manufacturer (e.g., CocaCola) can prevent a competing beverage manufacturer's (e.g., Pepsi's) ads to be shown at the same time as its own ads
and vice versa.
The fourth kind of contract is called a story contract . This type of contract is used to guarantee an advertising package in
which a sequence of two or more ads are shown together. The ads can be displayed so that the user sees a first part of
the advertisement, then sees a second part of the ad, and then sees a third part of the ad and so on. For example, an
advertisement for coffee might consist of a picture on a first page showing somebody drinking a cup of coffee; a picture on
a second page showing them putting the coffee cup away; and a picture on a third page identifying the name of the
advertiser's product (e.g., "Maxwell House makes a good cup of coffee") . Thus, the story contract guarantees that an
advertiser's ads will be shown in the form of a story. The story contract is desirable where a group of ads must be shown
together in a particular order to make sense.
The fifth kind of contract is the frequency-based contract. This contract is used where the advertiser wants to guarantee
that its advertisement will be shown a certain number of times over a given time period (e.g., 100 times per week) .
Several different combinations of the above-described types of contracts can also be used. For example, an advertiser can
enter a story contract which also guarantees that its advertisement will not be shown at the same time as its competitors
ads are shown, that its advertisement will be shown at the same time that a related advertisement is shown, and that its
advertisement will be shown in prime space a certain percentage of the time.
The prime space manager 20 has the responsibility of determining all the possible advertisements that can be shown in
conjunction with the information requested by the user. The prime space manager 20 then decides which ads to show
based on the particular contracts that have been signed. If a contract has already been entered with an advertiser's
competitor, the prime space manager 20 will make sure that it can in fact satisfy the new contract with the advertiser.
Thus, the prime space manager 20 dynamically makes a decision of which advertisements to show given the amount and
the number of advertisements that it can possibly show. The end result of the prime space manager 20 ' s computation is

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that the system knows exactly which advertisements can and will be shown to the user. These advertisements are then
given to the gate 15.
The gate 15 at this point gives the ads to the typography manager 14, and the typography manager 14 determines how
best to display the information. The page information then comes back to the gate 15 and is forwarded to the client 17. In
the above description of the present invention, the advertisement contracts, the active index SIC 19, the layout rules 11,
the segmenter 12, the segment rules 13, the layout manager 10, and the typography manager 14 have been explained.
During the computation of the advertisements and all the other computations that the system of the present invention
performs, a logging module 22 of the system performs extensive logging of what the user has asked, what advertisements
were shown, how long the advertisements were shown, and which advertisements were shown to which user. The logging
module 22 then stores these logs in a SYS logs database 23. Various scanned reports can be produced and defined using
the information in the SYS logs database 23. A local client 24 of the present invention provides a download delay-time
advertising feature. Download delay time refers to the delay experienced by most users of computer networks from the
moment a page is requested to the time the page is downloaded to their browser. The download delay-time advertising
feature utilizes the time that the consumer would have waited for a page to be downloaded to expose the consumer to
ads. Once a page (or a subpart of the page) has been downloaded to the consumer's browser and is available to be
displayed, the ads are replaced by the page content .
In most cases, when a user asks for a page there is a considerable download delay time. The user must wait for the page
after the request for a few seconds or, in certain cases, a few minutes before the page is finally downloaded by the
network. The present invention uses this delay time to show advertisements, while taking care that the delay time of the
user is not increased by showing the ad. Thus, the only time an advertisement is displayed is the time that the user would
have had to wait anyway. While the user waits for the page, the user can view the advertisements on the local client 24.
The information brokers or content providers shown in Fig. 1 include a home page dispatcher 25, a search engine
INFORMIX 26, and a generic HTML 27. For purposes of the present invention, it is assumed that there are three broad
classes of publishers that can utilize the advertising features of the present invention. A "publisher" can include virtually
anyone that provides content to the network. For example, anyone who is a home page owner is a publisher in the
category shown as Generic HTML 27. A second kind of publisher is the search engine publisher 26, which includes phone
company yellow page providers, such as NYNEX. And a third kind of publisher is the so-called home page dispatchers,
which include traditional magazines and newspapers, such as Business Week.
The present invention distinguishes between these three types of publishers. If the publisher is a home page dispatcher
25, the publisher provides its own content and intersperses the content with certain special tags indicating where ads can
and cannot be placed and indicating where the focus of the content is about certain topics . These special tags are then
used to trigger certain actions in the system of the present invention relating to the type of content contained on the page
and the kinds of advertisements that can be placed on the page.
The second kind of publisher that the present invention is used with is the search engine publisher 26. Currently, there are
many companies on the WWW that permit users to query their database and then return a set of answers from the
database to the user. For example, a telephone company may have a site that allows a user to obtain a set of phone
numbers and business names for a particular type of business (i.e., a yellow page directory) .
For purposes of the present invention, the search engine publisher 26 is distinguished from the home page dispatcher 25
in the sense that the content returned by the search engine publisher 26 does not contain any special tags or meta
comments put in by the publisher to define the layout of the content and the ads. In this case, the layout manager 10 of the
present invention computes the optimum layout based upon the rules and layout templates, as described above. The final
result, therefore, is that output is taken from the search engine publisher 26, adorned with certain relevant advertisements,
and then shown to the users.
The third kind of publisher, the generic HTML publisher 27, includes those publishers that the present invention assumes
are people who have designed their own home page, perhaps taking great care to provide a desired appearance. These
publishers will probably not have inserted any special tags or meta comments into their home page to guide the
advertising system of the present invention. In this case, the system of the present invention can either try to find a space
in the home page that it thinks is reasonable without violating the desired appearance of the page, or it can insert the
advertisement before or after the page. That is, if the segmenter 12 cannot find a suitable place within the page that the
generic HTML publisher 27 has already designed, it will place the advertisement on the proceeding or the following page.
This is more likely to occur if the owner of the page has not provided any special tags or meta comments, or if copyright
concerns prevent the insertion of a certain advertisement within the page.
In summary, the present invention partitions the publishers (i.e, the information brokers) into three categories: the home
page dispatchers 25, the search engine publishers 26, and the generic HTML home page providers 27.
The distinction between the three is that the home page dispatchers 25 intersperse their content with special tags or meta
comments which helps the present invention in determining where to place the advertisements and what kind of

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advertisements to place, the search engine kind of publishers 26 return unadorned results of queries and the present
invention is free to reformat and relay out the set of answers, and the generic HTML home page publishers 27 are
publishers that have meticulously crafted their home pages, usually without special tags or meta comments, so that no
guidance is provided to determine an appropriate space for placing an ad.
The segmenter 12, which is the module of the present invention whose responsibility is to find a place somewhere on a
generic HTML page to place an advertisement, may not succeed in finding a space on a generic HTML home page. In this
case, it will either place the advertisement on a proceeding or a following page. Most, if not all, of the publishers on the
WWW will fall into one or more of these three categories .
In Fig. 1, the acronym LA refers to List of Ads, Q refers to the user's query, CGI is a standard WWW abbreviation for
"common gateway interface, " HTML is a standard abbreviation for hypertext markup language, and Ly is the list from the
layout manager 10 to the typography manager 14 that indicates a list of pages that have to be displayed.
Referring to Fig. 2, a flow chart is provided that describes the main flow of the process of placing ads on content pages
provided by yellow page publishers, in accordance with the present invention. The process begins at START 30 when the
client provides a query to the system.
For purposes of illustration, the query depicted is a yellow page query in which a user requests some item of interest, and
the publisher is a yellow page publisher
(please refer to the previous discussion for a description of the three kinds of publishers) .
For example, the user may submit a query form asking for a listing of all car dealers in Morristown, New Jersey. This query
form is evaluated by the box 31 entitled YP
QUERY FORM. The purpose of this evaluation is to determine the type of the query (e.g., is the user interested in cars, a
particular geographic region, etc.) .
In using a yellow page publisher there are two broad distinctions for a query. A client may be asking for a certain category
of listings, or the client may be asking for a particular vendor. For example, the user could ask for car dealers in
Morristown, NJ (i.e., a category of listings) , or the user could ask for Morristown BMW located on South Street in
Morristown, NJ (i.e., a particular vendor) . The system determines which of the two types of queries or searches the user
has made, as illustrated by box 32 in Fig. 2. If the query is for a certain category, the process will go to the left hand side of
the flow chart of Fig. 2, and if the query is for a certain vendor, the process will go to the right hand side of the flow chart of
Fig. 2. The left hand side of the flow chart will be explained first.
After determining the type of query, the category search engine 33 next determines which category best fits the user's
request. The user may have asked for "car, " but the category in the yellow page provider's index may in fact say
"automobile." Or, the user may have asked for "spectacles, " and the category in the yellow page provider may be called
"optician." The matching of these variations of terms is performed by the category search engine 33.
Once it has been determined which category the user's request falls into, the advertisement selection process comes into
play with the ad selector 34. The ad selector 34 determines what advertisements are best suited to be mixed in with what
the user has requested. The content from the category search engine 33 and the ad(s) from the ad selector 34 are then
given to a mixer 35. The mixer 35 functions to mix the content coming from the search engine with the ad(s) selected by
the ad selector 34. The result is the creation of a page that is of interest to the user. If the user's category was about cars,
at this point the ad selector 34 would have presumably found advertisements related to cars and displayed these ads at
step 36 to the user. The user at this point can select one or more of the listed or advertised car dealers. This again results
in more advertisements being selected by the ad selector 34, as well as the accessing of a vendor search engine 37
provided by the yellow page publisher, and a new page being shown to the user. Referring to the right hand side of Fig. 2,
if the user requests a particular vendor, the system will first do a search time estimation 38 to figure how long it will take to
find the piece of information requested by the user. At the same time, the ad selector 34 will perform a search for the
advertisements that are to be shown to the user. As soon as the relevant ads are found by the ad selector 34, the ads are
mixed with the search time estimation information and both are displayed to the user. At this point 40 in the process, the
user is asked for a confirmation of whether to continue with the requested search given the estimated search time. Upon
receiving confirmation from the user, the ad selector 34 will again be accessed, as will be the vendor search engine 41.
The first set of ads returned by the ad selector will continue to be displayed to the user for viewing until the search results
from the vendor search engine 41 are available. When the vender search engine 41 completes the search, it returns the
search results to the mixer 35. Similarly, the ad selector 34 returns a second set of ads to the mixer 35. The mixer 35
mixes the ads with the content provided by the vendor search engine 41 and forwards the combined page to the page
display 42.
The result of this process is that a yellow page inquiry posed by the user is categorized either as a category search or a
vendor search. In both cases, the type of the query is matched with a certain category of ads, the search results and the
ads are mixed, and a page is constructed and shown to the user. Upon further input from the user, the system selects and
mixes a second set of ads with the content page of the publisher, and another page containing ads is constructed and

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shown to the user. The "focus" arrows 43 shown in Fig. 2 indicate that a certain focus is associated with each category.
The query may have been directed to a category of listings or a particular vendor. In both cases there is a "focus"
associated with the content of the query (e.g., automobiles, physicians, lawyers, etc.) . In addition, there may be a focus
associated with the geographic location of the user to permit advertisers to target users in particular geographic regions .
The focus process plays a major part in the present invention. No advertisements are shown unless it can be determined
that the advertisements are in some way focused or related to the content of what the user requested.
Referring to Figs. 3A-3D, the page views displayed to the user during the process of Fig. 2 will be described. Figs. 3A-3D
show four form views labeled successively Form# YP_1, Form* YP_2 , Form* YP_3 , and Form* YP_4. These form views
correspond to the references made to the same form numbers in the flow chart of Fig. 2.
The user is first presented with a user's screen that looks like Form* YP_1 and the user is prompted to type in a query. For
example, the user can type in a query for car dealers in Morristown, NJ. This query will result in a search type as
previously described, either as a category or a vendor. In fact, the user can pick one or the other by selecting the
appropriate box on Form* YP_1. At thiε point, the system knows whether the search type is category or vendor and,
because the user has typed in car dealers, the system knows the focus.
At this point, if the search type is vendor, the system will show a screen that looks like Form* YP_2. This screen informs
the user that it will take approximately 30 seconds for the system to respond to the user and asks the user whether this is
okay. If the user wants to proceed, the user clicks on the box labeled "Search it now" and the system begins the search.
If the search type is category, the system displays a screen that looks like Form* YP_3. This Form* YP_3 shows a list of
categories under the heading of car dealers. The user is then asked to make a selection of one of these categories.
Simultaneously, the system goes into the ad selection mode and selects and places ads on the Form* YP_3 that is being
displayed to the user. In this case the advertisement shown on Form* YP_3 is the Bellcore logo.
The user then selects one of the subcategories being displayed and clicks on the box "Search it now."
The system next displays a screen that looks like Form* YP_ . The ads placed on this Form* YP_4 have been selected by
the ad selector 34, and the listings on the form have been searched and retrieved by the vendor DB entries search engine
41.
In summary, the general process for a yellow page search request in the system is that first the user states a query, the
result of the query is a set of possible categories that the user wants to see. The system then makes a choice of one
category from this list of categories and shows the relevant providers in that category to the user. When the user states a
query and the system displays to the user a list of categories, certain advertisements are shown to the user as well. This is
the top half of the flow chart of Fig. 2 where the category search engine 33 or search time estimator 38 and the ad selector
34 provide the two components to the mixer 35 and the mixer 35 comes up with a page containing both an advertisement
and a list of categories or the search time estimation of how long it will take. If a user requested a category, the user will be
shown advertisements and a list of categories that relate to the user's query. If the user requested a particular vendor, the
user will be shown advertisements related to the focus of the user's query and an estimation of how long it will take for the
system to process the query. In both cases, the user has been shown advertisements and some part of the information
and then asked to make a further choice. Once the user makes the further choice, the system again tries to find what the
user requested plus what advertisements to show as a part of this process. Thus, whenever the user asks the system to
do something, the system will do what the user asks, but at the same time will find advertisements that it can mix in with
what the user requested.
Although the flow chart of Fig. 2 illustrates the present invention only in conjunction with a yellow page publisher, similar
processes are used with other types of publishers. The process of the present invention for placing ads with home page
providers is described below in conjunction with the flow chart of Fig. 7.
Referring now to Fig. 4, the layout manager 10 of the present invention will be described in further detail. At step 50, the
layout manager 10 is given the collection of data to be displayed. The layout manager 10 has a collection of rules that it
evaluates so that it can return the best layout for each page. When the layout manager 10 receives data it reads the
parameters of the data for each rule (step 51) and expands on the expand meta template 53. There are two main
components of the layout manager
10, as previously discussed -- a layout data base and a layout rule base. The layout rules describe certain parameters that
can be used to determine the best layout to use under a given set of situations. The layout data base is a collection of
templates that can be thought of as forms that need to be filled out with certain kinds of data.
When the layout manager 10 is given a piece of data, it uses the rules to determine which templates to use. Specifically,
the layout manager 10 evaluates each and every rule in its rule base to figure out which rule is the best for a given piece of
data. The rules are evaluated at step 54 by calculating a meta and a target function cost. The meta template is the
template that describes what the layout is about. For example, the template may provide that there are only five places for
advertisements in a particular layout.

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There is a cost associated with each kind of layout. The basic problem that the layout manager 10 is faced with is that are
a certain number of advertisements to show and there is a certain amount of user-requested data that has to be shown.
This creates a spectrum of objective versus subjective content that has to be evaluated. That is, it must be determined
how much subjective content to provide and how much objective content to provide. If the publisher is a yellow page
publisher, the layout manager 10 must decide how many telephone listings to display and how much of the page to fill with
advertisements. The system could, for example, display only three telephone listings and fill the rest of the page with
advertisements, or the system could display twenty telephone listings and only one ad. Each template in the layout
database has a set of meta attributes associated therewith indicating the number of advertisements that can be displayed,
the amount of content to be displayed, and the cost function associated with the template.
In summary, the layout manager 10 picks up a rule in the data base, calculates the cost function for each template and
stores the template with the minimum cost in a safe place (step 55) . At the end of this computation the layout manager 10
succeeds in finding the minimum cost layout within its data base that it can use for the current data account. It then picks
the minimum cost layout as the best layout and returns the best layout (step 52) to the typography manager 14 for display
to the user.
Referring to Fig. 5, a flow chart of a parser 60 of the present invention will be described. The purpose of the parser 60 is to
interpret the meta comments and meta tags inserted on the publishers ' pages . As described above, these are generally
pages constructed by magazine or newspaper publishers that have provided special tags in their content for the present
system to interpret in a special way. These pages are referred to in Fig. 5 as enhanced HTML or E_HTML 61.
The parser 60 first searches for special tags (step 62) in the input E_HTML. There are two kinds of special tags: tags for
focus and tags for advertisement space. Tags for focus are tags that tell the system what the focus of the page is or what
the context or content of the page is about. For example, a focus tag might indicate that the page is about sports cars,
cooking, or travel destinations in the Caribbean. The advertisement space tags, on the other hand, indicate a space on the
page that is so many pixels by so many pixels and that can be used for advertisements. The parser 60 searches for these
special tags and identifies the tag name as either a focus or an advertisement tag (step 63) . If the parser 60 cannot find
any special tags, it simply returns from where it was called.
If the parser 60 finds a focus kind of tag, it extracts and stores the focus words (step 64) . If the parser 60 finds an
advertisement kind of tag, it extracts and stores the size value (step 65) . In both cases, the process returns the focus and
ads information to another module in the system (step 67) after reaching the end of the page (EOF) 66.
Referring to Fig. 6, a process flow of the mixer and ad selector will be described. The purpose of the mixer 35 (as
previously described in reference to Fig. 2) is to take publishers ' content and advertisements and combine them together
so that the content and the advertisements are mixed on the same page.
In Fig. 6, the mixer 35 is shown receiving two inputs from the publishers: data 50 (which is the content) and E- HTML 61
(which contains the special tags) . The layout manager 10 and parser 60 both form a part of the mixer 35. The data 50 is
input to the layout manager 10, and the E_HTML 61 is input to the E_HTML parser 60, as previously discussed. Both of
these sub-modules then determine where the advertisements can be placed on the publisher's page. The advertisement
list is then input from the ad selector 34. The ad selector 34 receives a focus input 43, retrieves relevant ads (step 70) ,
and creates the advertisement list using the prime space manager 20 (step 71) . These advertisements are then placed in
the parser 60 and the layout manager 10 (step 72) , as described above.
The mixer 35 then logs all the essential billing and other user information (step 73) for keeping track of the system's
placement of an advertiser's ad. At this point, a refresh tag is inserted (step 74) and the system outputs an HTML page
(step 75) .
The HTML page output from the mixer 35 has no special tags and can be displayed by any client that can understand
HTML. The E_HTML 61 is peculiar to the present invention.
The HTML 75 is the standard HTML used on computer networks. The E_HTML 61 is peculiar in the sense that it has the
special tags for advertisements and focus, as discussed above.
The refresh tag inserted at step 74 is a special tag inserted into every page that is to be displayed. The purpose of this tag
is to refresh the page if the user does not take any action for a predetermined period of time. The system will refresh and
show a new advertisement in the ad space, while leaving the rest of the page the same. Thus, while the user is viewing
the page, the system will not show the same advertisements for more than a predetermined period of time so as to take
advantage of the user's limited attention span. This permits the system to effectively run as many ads as possible.
For example, while a user is reading an online magazine page, the advertisement may change every so often as the user
is viewing the same page. If the user is making changes to the page or is going back and forth on the page, then the
advertisements will not be changed by the refresh tag function. The timer for the refresh tag function can be specified by
the advertiser or determined by the system. As described above, there are five basic types of contracts supported by this
system. One type of contract, the ratio-based contract, requires that a certain advertisement has to be shown on the first
screen of information or the prime space screen of information for a certain percentage of the time. In order to satisfy this

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contract, the system has to be able to refresh the prime space screen. Otherwise, once an advertisement was placed on a
user's screen it would remain on the screen the entire time that the user is viewing the screen. The insert refresh tag
function 74 ensures that the user will be shown new advertisements and not be subjected to the same advertisement for
any great length of time.
Referring to Fig. 7, a flow chart of the present invention as used with a home page provider will be described. The flow
chart of Fig. 7 is somewhat similar to the flow chart of Fig. 2. However, while the flow chart of Fig. 2 shows the process
used with yellow page publishers, the flow chart of Fig. 7 shows the process used with home page provider publishers. As
described above, home page providers are publishers that have provided special tags and special focus and
advertisement space tags in the meta content supplied to the present system.
To start (step 80), the user enters a query. For example, the user may enter restaurants or cars as a query.
The query has a focus, as described above. The system determines what the focus is and, as described above, the
system provides the user with a list of categories that relate to the query. For example, if the user requests restaurants, the
user might be shown a list of restaurant types, such as Chinese, American, French, Italian, and so forth. The query
entered by the user is evaluated by a query form manager (step 81) to determine the focus of the query. The screen
("Form* 1") illustrated in Fig. 8A is the graphical interface used to enter the query. Form* 1 shows the space (immediately
following the phrase "SEARCH FOR") where the user types in the query (in this case "car") . The result of the query is a
list of relevant subcategories for cars, as shown in Fig. 8B ("Form* 2") .
Referring again to Fig. 7, the category search engine 33 generates a number of subcategories of the query (e.g., cars) ,
and the ad selector 34 (Fig. 7) finds certain advertisements that are related to cars. The mixer 35 mixes these two screens
to create the display shown as Form* 2 in Fig. 8B (step 82) .
At this point (step 82) the user is asked to make a further selection. That is, the user is asked to pick one or more of the
categories displayed in Form* 2 so that the system will provide more specific information. The user may pick, for example,
"new and used car dealers retail" by highlighting that item and clicking on the submit button. Upon clicking the submit
button, the content provider search engine 83 is accessed. At the same time the ad selector 34 is directed to find
appropriate advertisements for the category "new and used car dealers retail . "
The content provider search engine 83 and the ad selector 34 then return their respective outputs to the mixer 35. The
mixer 35 then mixes the outputs and produces a list of matching content providers plus the advertisements (step 84) . The
combined display at this point is shown as Form* 3 in Fig. 8C. Form* 3 shows a list of different car dealers in the center of
the display, and five advertisements along both sides of the display.
The user is then further asked to make a selection of a particular dealer (e.g., a Mazda 626 dealer or a Ford Mustang
dealer) that the user wants to visit. The user makes the choice, and the choice of the user is given to the content provider
dispatcher 85 and the ad selector 34. As the content provider dispatcher 85 is retrieving the requested home page, the ad
selector 34 again finds an appropriate advertisement based on the user ' s request .
For example, the user can pick a Mazda 626 dealer by clicking on Mazda 626. As the page for a Mazda 626 dealer is
being retrieved, the ad selector 34 finds advertisements that can be inserted on this page. There may or may not be
advertising space on the home page for the Mazda 626 dealer.
If there are no spaces on the home page for the system to place ads, the system will either insert the ads before or after
the page, or the system may decide not to place any advertisements at all. In any case, for any home pages requested,
the ad selector 34 will attempt to find suitable advertisements and give these ads to the mixer 35, and the mixer 35 at that
point will display the content provider's home page with or without ads.
In summary, Figs. 8A-8C show three screen displays referred to in Fig. 7 as Form* 1, Form* 2 and Form* 3, respectively.
Form* 1 is the first screen that the user sees and in which the user is expected to type in a general query in the typeable
space. This results in a second screen (Form* 2) where the user is asked to make a choice from a list of categories. After
choosing from the list of categories in the second screen, a third screen (Form* 3) is shown to the user from which the
user makes a choice from a list of subcategories. The present invention uses these three screens also to show ads related
to the user's requests. Form* 1 shows two ads for the owner of the service provider (e.g., Bellcore in this case) . Form* 2
shows advertisements related to cars because the user typed in cars. Form* 3 shows more car advertisements relating to
particular makes of cars because the user asked for retail car dealers.
Referring to Figs. 9A and 9B, a description of the billing system of the present invention will be provided. Figs. 9A and 9B
show two submodules of the system called the info bank and ad auditing. The purpose of these two modules is to
construct log reports of various usages of the present invention.
Fig. 9A shows the process flow for the info bank sub odule 90. The purpose of the info bank submodule 90 is to log certain
kinds of information during a particular client's session. The logged information is then used to provide advertisers with a
description of what advertisements have been shown, what the user has bought after seeing an ad, and so forth. Thus, the

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info bank submodule provides an information bank to show advertisers who has been accessing the system and how
successful the ads have been.
The screen for the relevant module contains a link called the info bank which the user can select. When the user clicks on
the info bank link, the user is shown the start 91 of the info bank submodule. At this point the user is asked for
authentication information (step 92) , such as the user's name and personal identification number (PIN) . The system then
goes into the authentication mode 93 and verifies whether the user ID and PIN number typed in are valid. If the
authentication is successful, the system then searches the transaction log and filter (step 94) and pulls up the appropriate
log requested by the user. The user can ask to see all transactions performed by the client or all of the things of a certain
type that the user has bought. A report of the results (step 95) is automatically produced for the client and displayed. The
submodule for ad auditing 96 has a similar purpose to the info bank submodule. With the ad auditor, an advertiser that has
placed an advertisement with the system is able to go into the system at any point in time and find out who has seen his
ad, what was the content of the query when the advertisement was displayed, how many times has the advertisement
been displayed, and so forth. The authentication and other process steps are similar to the corresponding steps of the info
bank submodule 90.
More specifically, in order to use the ad auditing submodule 96 the advertiser is shown a screen with a link for ad auditing.
The user clicks on the ad auditing link and is led into the start 97 of the ad auditing module. The advertiser is then asked to
type in authentication information (step 98) , which consists of the user name followed by a PIN number. If the PIN and the
user name check out and are authenticated by the authentication step 99, the user is then asked to tell the system which
advertisement or which subset of advertisements they want to verify or audit (step 100) . Once the user specifies the
advertisement by name or by browsing all the advertisements in the system and clicking on the ones that the user wants to
get a report on, the system generates a report (step 101), which is a log of who has seen the ad, what machine they were
using, what time and for how long the advertisement was displayed, and other desired information. All the log information
accessed by the info bank and ad auditing submodules is logged in a single database 23 (Fig. 1) . Whether the user is
looking for auditing information, transactions, things that the user has bought, or user demographics, the information is all
in the same database. However, when a user uses the info bank submodule 90, the user is interested in only certain
things, as described above. But when the user uses the ad auditing submodule 96, the user is interested in other things.
Therefore, the reports that are produced by the info bank and ad auditing submodules contain different data. The database
is filtered and only the items of interest for a certain report are retained so that the rest of the database need not be used.
Referring to Fig. 10, the flow of an ad placement process 110 according to the present invention will be described. The
purpose of ad placement is to allow advertisers to enter their advertisements into the system. For entering an ad, the
system provides a screen that is shown to the user asking whether the user wants to enter an ad. If the user indicates yes
by clicking on that particular choice, the system enters the start 111 of the ad placement mode. At this point the system
asks the user for the focus (step 112) . The advertiser may say, for example, that he is in the car business, the car
washing business, or that he is a physician, a lawyer or whatever other category name that he wants to give. The user is
also asked for an advertisement name at step 112. This is just a name for future reference.
The purpose of the focus in step 112, as discussed above, is to prevent an advertisement from being shown that is not
relevant to the query at hand. The system of the present invention always shows advertisements that are relevant to what
the user has asked for. Therefore, it is of paramount importance that the system know the context of the ad. Thus, when
the advertiser places an ad, the system establishes the focus.
The present invention describes the world in terms of SIC codes, which is a categorization of approximately 64,000
categories. For example, the system knows that there is a distinction between opera glasses and operating tables. It
knows a distinction between lawyers and physicians, as well as the distinction between different kinds of physicians. For
example, when the user types in bicycle as the focus, the present invention accesses the category search engine 33 and
returns a list of subcategories related to the bicycle business (e.g., bicycle repair, bicycle sales, bicycling as a sport, and
so forth) . The user is prompted (step 114) to select one or more of the subcategories from the list that are relevant to the
user's ad. The user can also create his or her own categories at this point. The result is that the advertisement is tied to all
of the categories selected or created by the user.
The user may also be asked to provide certain demographic or profile information. For instance, the user can require that
his advertisement be shown only to people in age group 30 to 40 or only to people living in Morristown, NJ or any other
geographic location. The last item that the user is asked to specify is the contract. The various contracts available to the
advertiser are explained above. When the user is finished entering all of this information, the system updates the ad info
database (step 115) .
The system then either accepts the advertisement (step 116) , or the system rejects it. The system might reject the
advertisement because the contract that the user wants cannot be satisfied by the system. If the system decides at this
point that the user's contract cannot be satisfied, the system displays to the user the next best possible contract that it can
satisfy, and the user is then free to either choose that contract or to suggest a different one for consideration by the
system. Upon confirmation of the ad placement, the advertisement becomes a part of the database. Referring to Fig. 11,
the flow of a page placement process 120 according to the present invention will be described. The purpose of the page

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placement process is similar to the ad placement process described above with reference to Fig. 10. The page placement
process 120 is distinct from the case where the page resides outside of the present system, either as a part of a search
engine or because somebody else owns the home page. The page placement process is used for publishers interested in
creating a home page for use in the present system. The page placement process permits publishers to provide a page
with meta tags and meta contacts.
The page placement process has a starting screen 121 in which one of the menu choices is, "Would you like to place a
page?" If the user clicks on that menu choice, a screen is shown to the user asking the user to type in a page name, a
page URL (i.e., Universal Resource Locator) , and a focus. The URL is a physical address in terms of the WWW of where
the page is actually residing. As discussed above, the focus is a list of key words that the user believes captures the
content of the page.
Upon entry of the focus, page name, and page URL, the system retrieves a list of subcategories from the category search
engine 33 that are related to the focus at hand and displays those subcategories to the user (step 124) . The user picks
one or more of these subcategories as being relevant to the content of the page. The system is then able to integrate the
page into the page database of the present invention (step 125) and return a confirmation of the new home page being
linked to the relevant categories (step 126) .
Referring to Fig. 12, an architecture of the underlying transaction system of the present invention will be described. One of
the basic features of the present invention is that the advertisements displayed to users provide a gateway for the client to
take further action with the advertiser. That is, the ads are not just there for the user to see, they are interactive.
For example, if the system shows the user a picture of a car or a cookie and the user wants to buy or receive further
information about the advertised product, the user can make a transaction with the system. The transaction can be very
simple, such as where the user clicks on the advertisement and is displayed all information about that particular product.
Or the transaction could be something more complicated, such as where the user actually enters a dialogue with the
system and buys the product. The flow chart shown in Fig. 12 describes a typical scenario in which the client has seen a
certain advertisement and clicks on that advertisement to actually buy something. In particular, whatever this person is
going to buy is going to involve multiple servers. The client is running on Host 1, and the transaction that the client is
requesting will involve multiple servers, perhaps geographically distributed. Host 4 is a bank server running at a bank
somewhere on the computer network. Host 3 iε a transaction server for logging and serving as the transaction focal point.
Host 2 is a server that accepts the start of the transaction from the client housed at Host 1.
A typical transaction where the client 130 sees an advertisement and clicks on the advertisement will now be described by
reference to the transaction system architecture diagram shown in Fig. 12 and the screen displays shown in Figs. 13A and
13B. The action of clicking on the advertisement is captured by the gate 131 in Host 2 , and the appropriate information is
then displayed to the client by the transaction client 132 in Host 2. For example, the transaction client 132 might prompt
the client to enter the type of transaction desired. The transaction client in Host 2 is a client for a transaction server 133 in
Host 3.
Referring to Figs. 13A and 13B, in the typical transaction the user first clicks on an item from a list of features offered by
the particular publisher (Fig. 13A) , in this case, the item "Internet DMV. " A second screen display (Fig. 13B) then appears
in which an advertisement is provided in the middle of the page that says "Division of Motor Vehicles, Morristown, New
Jersey, Automatic Renewal of Driving License." The user may then click on this particular advertisement. At this point a
screen is displayed to the user asking the user what type of transaction the user wants to make. The next screen
generated by the transaction client at Host 2 would say, for example, "Would you like to renew your license?" or "Would
you like to get a new car registration?" If the user says, "I would like to renew my driver's license, " the request is captured
by the transaction client 132 at Host 2 and given to the transaction server 133 in Host 3. The transaction server 133 in
Host 3 then receives this request for renewal of driving license, extracts the appropriate forms to be filled out from its local
database, and provides the forms to the transaction client 132 in Host 2.
The transaction client 132 at Host 2 then receives these forms and fills them out with the client's information with help from
the client 130 at Host 1. Thus, the client's name, address, car ID and other necessary information are filled in for the client
automatically.
The client 130 is asked to type in a PIN number to start the second part of the transaction. If the client 130 types in the PIN
number, the second part of the transaction starts. The second part of the transaction is that the form that has now been
filled in and constitutes the request for a renewal of driver's license is sent from the client 130 in Host 1 to the transaction
client 132 in Host 2, and from the transaction client 132 in Host 2 to the transaction server 133 in Host 3. At this point,
there are two things that have to happen at Host 3. First, the particular request for renewal of the driving license has to be
processed by making a record that this person has renewed the license and by sending confirmation back to the client.
Second, the transaction server 133 must be paid for the renewal of the driving license. In other words, there has to be a
monetary fee that has to be exchanged between the client and the DMV.
In exchanging the monetary fee, the transaction server 133 will also act as a transaction client 134 to the bank server 135
in Host 4. The transaction client 134 sends a message to the bank server 135 in Host 4 indicating that it has the client's

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PIN number and the authorization to deduct a certain fee from the client's account. The bank server 135 authenticates that
information, logs the information in its own records, and sends back an electronic approval for the debit.
The transaction client 134 at that point indicates receipt of the payment to the transaction server 133 in Host 3. The
transaction server 133 in Host 3 logs receipt of the money, receipt of the request, and sends a confirmation message
through the transaction client 132 and gate 131 back to the client 130 at Host 1. The confirmation might say, for example,
"We have received your request; we have deducted $17 from your account; your license is in the mail; here is your new
driving license number; thank you very much."
Referring to Fig. 14, the transaction process of the present invention will now be described by reference to a flow chart.
The user starts the process (step 140) by clicking on an appropriate advertisement to ask for a transaction. The system
then links the user (step 141) to the transaction server (step 142) . The transaction server then returns the required form to
the client (step 143) , and the client fills in the form with the user's profile information. The form is then resubmitted to the
transaction server (step 144) . The transaction server accesseε the bank server (step 145) to determine whether the user
has the required money and whether the money can be withdrawn.
Upon authentication by the bank server, the transaction server receives confirmation from the bank server (step 146) that
the user has given a valid account number, and that the bank server has in fact authenticated the user and has
authenticated the deduction of the appropriate sums from the bank. The transaction server then makes the deduction and
puts the deducted amount into the bank server's log (step 147) . These logs are maintained so that at any time users can
find out how much money they have spent or who has bought what things. The transaction server also maintains a
transaction server log of the transaction time and any other particulars of the transaction desired (step 148) . Once the
logging is complete, the transaction server then generates a confirmation of the transaction which is then displayed to the
client (step 149) .
Referring to Fig. 15, the prime space manager 20 will now be described in further detail. As explained above, an important
feature of the present invention is that it offers advertisers certain contractual guarantees as to how and when their ads will
be shown in prime space (the first screen of information displayed to the user) . These contractual guarantees include
frequency-based contracts, ratio or percentage-based contracts, exclusive or competitive contracts, dependent contracts,
and story contracts . These contracts can be used alone or combined in a variety of ways, as previously explained.
The prime space manager 20 has a prime space algorithm 150 that accepts as inputs the list of relevant ads that are
related to the query at hand, the size of the prime space, and the list of all ad contracts. The prime space manager 20 then
looks at all the ad contracts and determines which advertisements to show to the user. The prime space manager 20 then
updates the contracts (step
151) to indicate which ads were selected (this information is used in considering which ads to select the next time) . The
prime space manager 20 then provides a list of prime space ads to be shown to the appropriate module. That is, the prime
space manager 20 accepts a possibly very long list of advertisements and, based on the contracts that it has, filters the
ads to a smaller list containing exactly the number of advertisementε that it can show based on the size of prime space.
The following examples of prime space algorithms are provided to further illustrate the function and operation of the prime
space manager 20 of the present invention. It should be noted that many variations of these algorithms are possible, and
that the specific examples provided are for purposes of illustration only.
Notations:
Let A\ An denote the advertisements in the system of the present invention.
Let i Pn denote the contract values associated with the corresponding advertisements ( Pλ denotes the contract value
associated with advertisement Ax, as a function of the price paid by the advertiser.)
Let S denote the size of the prime space in the system.
Prime Space:
The prime space on a user's terminal means the first screen of data which constitutes the answer to the user's query (plus
the relevant advertisements) . In this context, advertisers will be assured of "fair" treatment in the sense that their
advertisements will be presented to the targeted users in a manner that is commensurate with the fees they were charged.
Fairness means equal access as well as controlled access--ensuring that advertisers who pay more are more accessible
than those who pay less.
Contracts:
Contracts are specifications that indicate the frequency of display of a given advertisement in response to relevant user
queries.
The example prime space algorithms provided below may be used for the following four types of advertisement contracts :

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1. Frequency-based: These contracts specify the number of times a given advertisement is to be shown in response to the
relevant user queries .
2. Ratio-based: These contracts specify how often a given advertisement is to be shown in the prime space in response to
the relevant user queries.
3. Dependent: An ad A1 can have a dependent contract of X% with another ad A,. The dependent contract will ensure that
ad A± is shown together with A3 at least X% of the times ad A-, will be shown. 4. Exclusive: An ad Ax can have an
exclusive contract with another ad A . The exclusive contract will ensure that ad A will not be displayed along with ad A-.
Algorithm for Frequency-based Contracts:
WHILE (screen space is not filled) begin
1. Select an advertisement, say A1 , with the selection biased by the contract value P 2. Include A-, in the screen space
end
Algorithm for Ratio-based Contracts:
WHILE (prime space is not filled) begin
1. Select an advertisement, say Aλ , with the selection biased by the contract value P1
2 . Include Ai in the prime space end
Algorithm for Dependent Contracts: WHILE (Prime space is not filled) begin
1. Select an advertisement, say Ax, with the selection biased by the contract value Pλ
2 . Assign A to A
3. WHILE (some advertisement iε selected AND prime space is not filled)
Select one of the dependents of A, say A,, with the selection biased by the contract value j Assign A3 to A
Include A in the prime space end
Algorithm for Exclusive Contracts:
WHILE (prime space is not filled) begin
1. Select an advertisement, say Ax, with the selection biased by the contract value P 2. Remove all advertisements A: ' s
that have an exclusive contract on A,
3. Remove all advertisements A ' s that Ax has an exclusive contract on
4. Include Aλ in the prime space end
Algorithm for Overall Prime Space Management:
WHILE (prime space is not filled) begin 1. Select an advertisement, say Ax , with the selection biased by the contract value
Pλ
2. Assign A to A
3. WHILE (some advertisement is selected AND prime space is not filled) - Remove all advertisements Λ-, ' s that have an
exclusive contract on A
Remove all advertisements Ak ' s that A has an exclusive contract with
Select one of the dependents of A, say Am, with the selection biased by the contract value Pm Assign Am to A
Include A in the prime space end
Algorithm for Checking Consistency:
Notations :
Let PA denote the prime space contract value of Node A . Let D (A, B, X) denote the dependency contract value from
advertisement A to advertisement B [A should appear together with advertisement B, X% of the times advertisement B
appears) .

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Let E (A, B) denote the exclusive contract from advertisement A to advertisement B (note that no value is associated with
exclusive contracts) . If a new advertisement A is to be introduced into the system with a prime space contract value of PA l
a set of dependency contracts D (A, 1 , x) , . . . , D (A, k, y) and a set of exclusive contracts E (A, 1) , ... , E (A, g) , then for
checking the consistency of all the contracts, the following basic checks have to be carried out (more specific checks may
be required for specific algorithmε and their implementationε) :
1. Check whether Inequality (I) can be satisfied
2. For each of the dependency contracts D (A, i , x) check whether Inequality (II) can be satisfied
3. For each of the exclusive contracts E (A, i ) check whether conditions (III) can be satisfied
The consistency checking algorithm verifies if the new advertisement can be accommodated with the corresponding
contract. If the new advertisement can be accommodated, the contract is approved and the system is updated to reflect
the new addition, else, the consistency checking algorithm informs the advertiser of the maximal contract that can be
accommodated for the new advertisement.
Install Equation Editor and double¬ click here to view equation
Install Equation Editor and double¬ click here to view equation
For checking the Dependency Contracts and the Exclusive Contracts a graph is drawn by representing all the
advertisements as nodes m a directed graph A dependency contract "Advertisement C appears 50% of the times as
advertisement D appears (together) " is represented as an edge from the node "C" to the node " D" . A weight of 0.5 is
assigned to this edge. For each exclusive contract E (C, D) , there exists an edge m the graph Thus, a graph is formed
where the nodes denote the advertisements, and the edges denote the dependency and exclusive contracts. If a new
dependency contract D (A, B, X) is to be introduced, then the following check has to be made for consistency:
Install Equation Editor and double click here to view equation
If a new exclusive contract E (A, B) is to be introduced, the following conditions ( III) should hold (for any value of x) :
Install Equation Editor and double¬ click here to view equation.
where X<A.B> denotes the weight of the dependency edge from A to B, i.e. , D(A,B,XIAιB)) .
Fairness:
The fairness guarantees of an algorithm for the system ensures that the advertisements are displayed in a way that is
proportional to the fee charged for that advertisement. The fairness of the frequency-based contract algorithm, ratio-based
contract algorithm, and the dependent contract algorithm follows from the probability distribution of the contract values and
the random number generator that selects an advertisement with the correct random bias. The probability that the random
number generator will generate a number in a particular range is proportional to the length of the range. The larger the
range, the more probable that a number corresponding to that range will be selected. Each advertisement is assigned a
range of values depending on the fee charged for that advertisement. The more the fee charged, the greater the range
assigned to that advertisement. This ensures that the larger the fee, the more frequently (more number of times) that
advertisement will be displayed. Exclusive contracts are constraints imposed on the display of advertisements. Fairness in
meeting the exclusive contracts means that the contracts are satisfied (no two advertisements that have an exclusive
contract are displayed together) . The prime space management algorithm 150 ensures that the exclusive contracts are
met, by removing all the advertisements that have a relative contract with an advertisement A, as soon as advertisement A
is selected for display in the prime space.
In order to ensure fairness, the contracts have to be consistent. When contracts are negotiated with the advertiser, certain
consistency checks (using the consistency checking algorithm) are made in order to ensure that the fairness guarantees
can in fact be met.
Story Advertisements: Story advertisement is a kind of advertisement in which the advertisement changes dynamically as
time progresses. The story advertisement is composed of a sequence of static conventional advertisements, which
together tell a story. A story advertisement is displayed using the notion of refresh-insert tags. A refresh tag that is
associated with a page denotes the time period after which the story advertisements are refreshed (the next advertisement
in the sequence is displayed) . All other static advertisements are unaffected by the refresh timer. The refresh tag can be
set by the client or the application. Thus, the story advertisement is a logical sequence of a number of advertisements, that
will be displayed one at a time at each refresh cycle.
It will be appreciated that the present invention is not limited to the exact construction or process steps that have been
described above and illustrated in the accompanying drawings, and that various modifications and changes can be made
without departing from the scope thereof. It is intended that the scope of the invention only be limited by the appended
claims.

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CLASSIFICATIONS
International Classification

G06Q30/00, G06F17/30

Cooperative Classification

G06F17/3087, G06Q30/02

European Classification

G06Q30/02, G06F17/30W1S

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