# Patent

## Title
Selecting users to whom to promote an online offering

## Abstract

Disclosed are various embodiments for selecting users to whom to promote an online offering, such as an auction or a fixed-price item offering, based at least in part on bidding history or purchase history. A data representation of multiple items offered online by a web merchant and a purchase history associated with the items and the web merchant for multiple users are maintained. A first item is identified in response to determining that the number of users who have purchased a second item and who have also purchased the first item meets a minimum threshold. A set of users who have both purchased the second item and also purchased the first item is identified. The first item is promoted to one or more of the identified users.

## Background
CROSS REFERENCE TO RELATED APPLICATIONS
This application is a continuation of co-pending U.S. patent application Ser. No. 12/973,465 filed Dec. 20, 2010 and entitled “SELECTING PROSPECTIVE BIDDERS TO WHOM TO PROMOTE AN ONLINE AUCTION BASED UPON BIDDING HISTORY,” which is a divisional of U.S. patent application Ser. No. 11/970,380 filed Jan. 7, 2008 and entitled “SELECTING PROSPECTIVE BIDDERS TO WHOM TO PROMOTE AN ONLINE AUCTION BASED UPON BIDDING HISTORY,” which issued as U.S. Pat. No. 7,873,545 on Jan. 18, 2011 and which is a divisional of U.S. patent application Ser. No. 09/742,273 filed Dec. 19, 2000 and entitled “SELECTING PROSPECTIVE BIDDERS TO WHOM TO PROMOTE AN ONLINE AUCTION BASED UPON BIDDING HISTORY,” which issued as U.S. Pat. No. 7,318,042 on Jan. 8, 2008 and which claims the benefit of U.S. Provisional Application No. 60/171,843 filed Dec. 22, 1999, all of which are hereby incorporated by reference in their entirety.


TECHNICAL FIELD
The present invention is directed to the field of electronic commerce, and, more particularly, to the field of online marketing techniques.
BACKGROUND
The auction is a sales technique in which prospective buyers are permitted to bid on an item offered for sale, and the item is sold to the bidder submitting the highest bid.
Online auctions have recently emerged, in which auctions are conducted on a World Wide Web site or in a similar environment. Users of computer systems connected to the computer system on which the online auction is conducted can view descriptions and pictures of items offered for sale, as well as bid on items using their computer systems.
Operators of online auctions derive revenue from the online auctions in a variety of ways. For example, an online auction operator may charge sellers a flat sales fee to auction each item, or may charge sellers a sales fee measured by a percentage of the sale price. Alternatively, an online auction operator may sell advertising that is viewed by sellers and/or bidders.
Generally, however, the level of profitability of online auctions to their operator is directly related to the average number of bidders that bid in each auction. Where an auction operator charges sellers a sales fee measured by a percentage of the sale price, a larger number of bidders produces a higher sales price, from which the operator collects a higher sales fee. Where an auction operator charges sellers a sales fee of any kind, a larger number of bidders produces a higher sales price, and a larger seller profit, thereby encouraging sellers to initiate more auctions that produce more sales fees for the operator. Where an auction operator sells advertising on the auction site, a larger number of bidders produces a larger number of advertising impressions, and therefore greater advertising revenue.
Accordingly, an effective technique for increasing the number of bidders bidding in an online auction would have significant utility.



BRIEF DESCRIPTION OF THE DRAWINGS
FIG. 1 is a high-level block diagram of the computer system upon which the facility preferably executes.
FIG. 2 is a flow diagram showing the steps preferably performed by the facility in order to identify users to whom to promote a selected online auction once the auction has begun based upon the identities of the users that have already bid in other auctions.
FIG. 3 is a flow diagram showing the steps preferably performed by the facility in order to identify users to whom to promote a selected online auction once the auction has begun using clusters of users each having similar bidding histories.
FIG. 4 is a display diagram showing the manner in which the facility preferably promotes an auction to identified users.



DETAILED DESCRIPTION
A software facility for selecting prospective bidders to whom to promote an online auction based upon bidding history (“the facility”) is provided. The facility operates in conjunction with an online auction system that tracks the users bidding on each of a number of online auctions.
For an auction selected for promotion, the facility obtains a list of the bidders that have bid in the selected auction. The facility uses this list to identify other auctions, either completed or in progress, in which at least a threshold percentage of the bidders in the selected auction have also bid. In each identified auction, the facility identifies the bidders that have not yet bid on the selected auction. The facility may also use clustering techniques to identify users having bidding histories that are similar to those of the bidders in the selected auction.
The facility then promotes the selected auction to the identified bidders. In some embodiments, the facility sends an email message to the identified bidders suggesting that they bid in the selected auction. In other embodiments, the facility displays a suggestion to bid in the selected auction on a web page served to the identified bidders.
In this manner, the facility promotes the selected auction to a group of bidders that both (1) is likely to be receptive to receiving information about the selected auction, and (2) is likely to actually bid in the selected auction, thereby increasing the number of bidders in the selected auction and increasing profitability for the auction operator.
In additional embodiments, the facility is applied to markets other than online auctions, such as web merchants that sell items for a fixed price. Where a large percentage of the purchasers of a first item also purchase a second item, the facility preferably promotes the first item to purchasers of the second item that have not purchased the first item, and vice versa.
Further embodiments of the facility are applied across markets. For example, where a large percentage of the users that purchased a particular item from a web merchant also bid in a particular auction, the facility preferably promotes the auction to the purchasers that have not yet bid, and the purchase to the bidders that have not yet purchased.
FIG. 1 is a high-level block diagram of the computer system upon which the facility preferably executes. The computer system 100 contains one or more central processing units (CPUs) 110, input/output devices 120, and a computer memory (memory) 130. Among the input/output devices is a persistent storage device 121, such as a hard disk drive, and a computer-readable media drive 122, which can be used to install software products, including components of the facility, which are provided on a computer-readable medium, such as a CD-ROM. The input/output devices also include a network connection 123, through which the computer system 100 may by connected to the network to be analyzed by the facility. The memory 130 preferably contains the prospective bidder identification facility 131, as well as a bidding history representation 132 and a promotion history representation 133 both preferably generated and used by the facility. While items 131-133 are preferably stored in memory while being used, those skilled in the art will appreciate that these items, or portions of them, may be transferred between memory and the persistent storage device for purposes of memory management and data integrity. While the facility is preferably implemented on a computer system configured as described above, those skilled in the art will recognize that it may also be implemented on computer systems having different configurations, or distributed across multiple computer systems.
To more fully illustrate its implementation and operation, the facility is described in conjunction with an example.
FIG. 2 is a flow diagram showing the steps preferably performed by the facility in order to identify users to whom to promote a selected online auction once the auction has begun based upon the identities of the users that have already bid in other auctions. In steps 201-209, the facility loops through each of a set of auctions other than the selected auction in which users have bid. In a preferred embodiment, the set of auctions includes both incomplete and completed auctions. In step 202, if more than a threshold number of users that bid in the selected auction bid in the current auction, then the facility continues in step 203, else the facility continues in step 209. The threshold used by the facility may be either an absolute threshold expressed in number of users, or a relative threshold, expressed as a percentage of the users bidding in the selected auction. In one embodiment, the facility uses the relative threshold of seventy percent of the users bidding in the selected auction.
In steps 203-208, the facility loops through each user that bid in the current auction. In step 204, if the user has also already bid in the selected auction, then the facility continues in step 208 to skip the user, else the facility continues in step 205. In step 205, if the selected auction has already been promoted to the user, then the facility continues in step 208 to skip the user, else the facility continues in step 206. In step 206, the facility promotes the auction to the user, since the user bid in a related auction, but has not yet bid in the selected auction or had the selected auction promoted to him or her. The process of promoting the selected auction to a user is discussed in greater detail below in conjunction with FIG. 4. In step 207, the facility adds the user to the list of users to whom the auction has been promoted. In step 208, if additional users remain, then the facility loops back to step 203 to process the next user. After the loop of steps 203-208 has completed, the facility continues in step 209. In step 209, if additional auctions in the set remain, then the facility loops back to step 201 to process the next auction in the set. After the loop of steps 201-209 is completed, these steps conclude.
Tables 1 and 2 below show the result of applying the steps shown in FIG. 2 to sample auctions. Table 1 shows the state in which the facility identifies users to whom to promote an auction called auction 3.











TABLE 1






auction 1
auction 2
auction 3
auction 3 already



bidders
bidders
bidders
promoted to








user 1
user 2
user 7
user 5



user 2
user 5
 user 11
 user 22



user 3
user 7
 user 12




user 4
 user 11
 user 13




user 5
 user 12





user 6
 user 19





user 7
 user 22









Table 1 shows a list of the users that have bid in auction 1, a list of the users that have bid in auction 2, a list of the users that have bid in auction 3, and a list of the users to whom auction 3 has already been promoted. In order to identify users to whom to promote auction 3, the facility examines the lists of users that have bid in auctions 1 and 2. In the example, the facility applies the threshold that, in order for another auction to be considered, at least seventy percent of the users that bid in the selected auction must have bid in the other auction. In terms of the number of users that have bid in auction 3 in the example, this means that at least three of the users that have bid in auction 3 must have bid in each of the other two auctions for them to be considered (4×70%=2.8).
It can be seen that only one of the users that bid in auction 3 (user 7) also bid in auction 1. Since 1 is less than 3, the facility does not use the list of users that have bid in auction 1. On the other hand, it can be seen that three of the users that bid in auction 3 (user 7, user 11, and user 12) also bid in auction 2. Because 3 is at least as large as 3, the list of users that have bid in auction 2 is considered. The facility considers the list of users that have bid in auction 2 as follows: user 2 has not bid in auction 3, and auction 3 has not yet been promoted to user 2, so the facility promotes auction 3 to user 2; auction 3 has already been promoted to user 5, so the facility does not promote auction 3 to user 5; user 7 has already bid in auction 3, so the facility does not promote auction 3 to user 7; user 11 has already bid in auction 3, so the facility does not promote auction 3 to user 11; user 12 has already bid in auction 3, so the facility does not promote auction 3 to user 12; user 19 has not bid in auction 3, and auction 3 has not yet been promoted to user 19, so the facility promotes auction 3 to user 19; and auction 3 has already been promoted to user 22, so the facility does not promote auction 3 to user 22. Accordingly, in applying the steps shown in FIG. 2, the facility determines to promote auction 3 to the users shown in Table 2 below.







TABLE 2





promote auction 3 to







user 2


 user 19









In some embodiments, the facility preferably uses clusters of users that are generated in such a way that the users in each cluster have similar bidding histories. Such clusters are preferably generated using well-known clustering techniques, such as those described in Anil K. Jain and Richard C. Dubes, Algorithms for Clustering Data, 1988, pp. 629-799; Phipps Arabie et al., Clustering and Classification, 1996; Richard A. Johnson and Dean A. Wichern, Applied Multivariate Statistical Analysis, 1998; and/or Leonard Kaufman and Peter J. Rousseau, Finding Groups in Data: An Introduction to Cluster Analysis, 1990.
FIG. 3 is a flow diagram showing the steps preferably performed by the facility in order to identify users to whom to promote a selected online auction once the auction has begun using clusters of users each having similar bidding histories. The facility preferably performs these steps once for each bid that is received in the selected auction. In some embodiments, these steps are only performed in response to a user's first bid in the selected auction. The steps may be performed directly in response to each bid, or may be deferred for later performance in a batch mode. In step 301, the facility receives a bid in the selected auction from a selected user. In steps 302-310, the facility loops through each of a set of user clusters to which the selected user belongs. In step 303, if more than a threshold number of users in the current cluster bid in the selected auction, then the facility continues in step 304, else the facility continues in step 310. The threshold used by the facility may be either an absolute threshold expressed in number of users, or a relative threshold, expressed as a percentage of users in the current cluster. In one embodiment, the facility uses the relative threshold of fifty percent of the users in the current cluster. In steps 304-309, the facility loops through each user in the current cluster. In step 305, if the current user bid in the selected auction, then the facility continues in step 309 to skip the user, else the facility continues in step 306. In step 306, if the selected auction has already been promoted to the current user, then the facility continues in step 309 to skip the current user, else the facility continues in step 307. In step 307, the facility promotes the auction to the current user, since the current user is a member of the cluster, but has not yet bid in the selected auction or had the selected auction promoted to him or her. The process of promoting the selected auction to a user is discussed in greater detail below in conjunction with FIG. 4. In step 308, the facility adds the user to the list of users to whom the auction has been promoted. In step 309, if additional users remain in the cluster, then the facility loops back to step 303 to process the next user. After the loop of steps 304-309 has completed, the facility continues in step 310. In step 310, if additional clusters remain, then the facility loops back to step 302 to process the next cluster. After the loop of steps 302-310 is completed, these steps conclude.
Tables 3 and 4 below show the result of applying the steps shown in FIG. 3 to sample auctions and clusters. Table 3 shows the state in which the facility identifies users to whom to promote auction 3.











TABLE 3






cluster 1
cluster 2
auction 3
auction 3 already



members
members
bidders
promoted to








user 7 
user 7 
user 7 
user 5 



user 8 
user 8 
user 11
user 22



user 24
user 11
user 12




user 27
user 12
user 13




user 99
user 13





 user 101
user 19






user 22









Table 3 shows a list of the users in cluster 1, a list of the users in cluster 2, a list of the users that have been in auction 3, and a list of the users to whom auction 3 has already been promoted. In order to identify users to whom to promote auction 3, the facility examines the lists of users that are members of clusters 1 and 2. In the example, the facility applies the threshold that, in order for a cluster to be considered, at least fifty percent of the users in the cluster must have bid in the selected auction. It can be seen that only one of the six in cluster 1 (user 7) is among the four users that have bid in auction 3. Because seventeen percent (1 user±6 users=17%) is less than fifty percent, the facility does not use the list of users in cluster 1. On the other hand, it can been seem that four of the seven members of cluster 2 (user 7, user 11, user 12, and user 13) have bid in auction 3. Because fifty-seven percent (4 user÷7 users=57%) is greater than fifty percent, the list of users in cluster 2 is considered. The facility considers the list of users in cluster 2 as follows: user 7 has already bid in auction 3, so the facility does not promote auction 3 to user 7. User 8 has not bid in auction 3, and auction 3 has not yet been promoted to user 8, so the facility promotes auction 3 to user 8; user 11 has already bid in auction 3, so the facility does not promote auction 3 to user 11; user 12 has already bid in auction 3, so the facility does not promote auction 3 to user 12; user 13 has already bid in auction 3, so the facility does not promote auction 3 to user 13; user 19 has not bid in auction 3, and auction 3 has not yet been promoted to user 19, so the facility promotes auction 3 to user 19; and auction 3 has already been promoted to user 22, so the facility does not promote auction 3 to user 22. Accordingly, in applying the steps shown in FIG. 3, the facility determines to promote auction 3 to the user shown in Table 4 below.







TABLE 4





promote auction 3 to







user 8 


user 19









FIG. 4 is a display diagram showing the manner in which the facility preferably promotes an auction to identified users. FIG. 4 shows that a promotion 410 is displayed on a display 400. The promotion may preferably be sent to a user an email message, as an ICQ instant message, or as another type of message. The promotion may further be presented to the user as a web page, either when the user visits a web site for the operator of the facility, or when the user visits another, associated web site. The promotion may also be provided in audio form, such as in an automatically initiated telephone call or an automatically delivered voicemail message. Those skilled in the art will appreciate that there are additional media through which the facility can also provide promotions to selected users.
The promotion 410 invites the user to consider bidding on the selected auction. The promotion includes information 411 about the auction, such as a description of the item offered for sale, the time at which the auction opened, the time at which the auction will close, and the current bid amount. Those skilled in the art will appreciate that other information about the selected auction could also be included. The promotion preferably further includes a visual control 412, such as a button, that the user may operate in order to open the web page used by users to bid in the selected auction.
It will be understood by those skilled in the art that the above-described facility could be adapted or extended in various ways. While the foregoing description makes reference to preferred embodiments, the scope of the invention is defined solely by the claims that follow and the elements recited therein.

## Claims

1. A method, comprising the steps of:
maintaining, by a computer system including a processor and a memory, a data representation of a plurality of items offered online by a web merchant and a purchase history associated with the items and the web merchant for a plurality of users;
maintaining, by the computer system, a data representation of a plurality of auctions in an online auction system and a bidding history associated with the auctions and the online auction system for the users;
determining, by the computer system, one of the items in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have bid in a selected one of the auctions and have also purchased the one of the items meets a minimum threshold; and
determining, by the computer system, a set of the users, based at least in part on the purchase history and the bidding history, who have bid in the selected one of the auctions and have not purchased the one of the items that has been determined.

2. The method of claim 1, further comprising the step of promoting, by the computer system, the one of the items that has been determined to at least one of the set of the users who have been determined.

3. The method of claim 2, wherein the promoting step further comprises the step of generating, by the computer system, a respective promotion that is sent to each one of the at least one of the set of users, the respective promotion including a visual control that is configured to open a web page that facilitates a purchase of the one of the items.

4. The method of claim 1, further comprising the steps of:
determining, by the computer system, another one of the items in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have bid in the selected one of the auctions and have also purchased the other one of the items meets a minimum threshold;
determining, by the computer system, another set of the users, based at least in part on the purchase history and the bidding history, who have bid in the selected one of the auctions and have not purchased the other one of the items that has been determined; and
promoting, by the computer system, the other one of the items that has been determined to at least one of the other set of the users who have been determined.

5. The method of claim 1, further comprising the steps of:
determining, by the computer system, one of the auctions in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have purchased a selected one of the items and have also bid in the one of the auctions meets a minimum threshold;
determining, by the computer system, another set of the users, based at least in part on the purchase history and the bidding history, who have purchased the selected one of the items and have not bid in the one of the auctions that has been determined; and
promoting, by the computer system, the one of the auctions that has been determined to at least one of the other set of the users who have been determined.

6. A non-transitory computer-readable medium embodying a facility executable by a computer system, the facility comprising:
code that maintains a data representation of a plurality of items offered online by a web merchant and a purchase history associated with the items and the web merchant for a plurality of users;
code that maintains a data representation of a plurality of auctions in an online auction system and a bidding history associated with the auctions and the online auction system for the users;
code that determines one of the auctions in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have purchased a selected one of the items and have also bid in the one of the auctions meets a minimum threshold; and
code that determines a set of the users, based at least in part on the purchase history and the bidding history, who have purchased the selected one of the items and have not bid in the one of the auctions that has been determined.

7. The non-transitory computer-readable medium of claim 6, wherein the facility further comprises code that promotes the one of the auctions that has been determined to at least one of the set of the users who have been determined.

8. The non-transitory computer-readable medium of claim 7, wherein the code that promotes further comprises code that generates a respective promotion that is sent to each one of the at least one of the set of users, the respective promotion including a visual control that is configured to open a web page that facilitates placing a bid in the one of the auctions.

9. The non-transitory computer-readable medium of claim 6, wherein the facility further comprises:
code that determines another one of the auctions in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have purchased the selected one of the items and have also bid in the other one of the auctions meets the minimum threshold;
code that determines another set of the users, based at least in part on the purchase history and the bidding history, who have purchased the selected one of the items and have not bid in the other one of the auctions that has been determined; and
code that promotes the other one of the auctions that has been determined to at least one of the other set of the users who have been determined.

10. The non-transitory computer-readable medium of claim 6, wherein the facility further comprises:
code that determines one of the items in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have bid in a selected one of the auctions and have also purchased the one of the items meets a minimum threshold;
code that determines another set of the users, based at least in part on the purchase history and the bidding history, who have bid in the selected one of the auctions and have not purchased the one of the items that has been determined; and
code that promotes the one of the items that has been determined to at least one of the other set of the users who have been determined.

11. A system, comprising:
a computer system including a processor and a memory; and
a facility that is executable by the computer system, the facility comprising:
logic that maintains a data representation of a plurality of items offered online by a web merchant and a purchase history associated with the items and the web merchant for a plurality of users;
logic that determines a first one of the items in response to determining, based at least in part on the purchase history, that a number of the users who have purchased a second one of the items and have also purchased the first one of the items meets a minimum threshold;
logic that determines a set of the users, based at least in part on the purchase history, who have purchased the second one of the items and have not purchased the first one of the items that has been determined; and
logic that promotes the first one of the items that has been determined to at least one of the set of the users who have been determined.

12. The system of claim 11, wherein the facility further comprises:
logic that determines a third one of the items in response to determining, based at least in part on the purchase history, that a number of the users who have purchased the second one of the items and have also purchased the third one of the items meets the minimum threshold;
logic that determines another set of the users, based at least in part on the purchase history, who have purchased the second one of the items and have not purchased the third one of the items that has been determined; and
logic that promotes the third one of the items that has been determined to at least one of the other set of the users who have been determined.

13. The system of claim 11, wherein the logic that promotes the first one of the items is configured to generate a respective promotion that is sent to each one of the at least one of the set of users, the respective promotion including a visual control that is configured to open a web page that facilitates a purchase of the first one of the items.

14. The system of claim 11, wherein the logic that promotes the first one of the items is configured to send an electronic mail message to the at least one of the set of the users.

15. The system of claim 11, wherein the items correspond to fixed-price offerings by the web merchant.

16. The system of claim 11, wherein the facility further comprises:
logic that determines a subset of the set of the users to whom the first one of the items has already been promoted; and
wherein the logic that promotes is configured not to promote the first one of the items to the subset of the set of the users.

17. The system of claim 11, wherein the logic that promotes is configured to include a promotion of the first one of the items in a web page in response to the web page being requested by the at least one of the set of the users.

18. The system of claim 11, wherein the facility further comprises
logic that maintains a data representation of a plurality of auctions in an online auction system and a bidding history associated with the auctions and the online auction system for the users;
logic that determines one of the auctions in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have purchased the second one of the items and have also bid in the one of the auctions meets another minimum threshold;
logic that determines another set of the users, based at least in part on the purchase history and the bidding history, who have purchased the second one of the items and have not bid in the one of the auctions that has been determined; and
logic that promotes the one of the auctions that has been determined to at least one of the other set of the users who have been determined.

19. The system of claim 18, wherein the logic that promotes the one of the auctions is configured to generate a respective promotion that is sent to each one of the at least one of the other set of users, the respective promotion including a visual control that is configured to open a web page that facilitates placing a bid in the one of the auctions.

20. The system of claim 11, wherein the facility further comprises
logic that maintains a data representation of a plurality of auctions in an online auction system and a bidding history associated with the auctions and the online auction system for the users;
logic that determines a third one of the items in response to determining, based at least in part on the purchase history and the bidding history, that a number of the users who have bid in a selected one of the auctions and have also purchased the third one of the items meets another minimum threshold;
logic that determines another set of the users, based at least in part on the purchase history and the bidding history, who have bid in the selected one of the auctions and have not purchased the third one of the items that has been determined; and
logic that promotes the third one of the items that has been determined to at least one of the other set of the users who have been determined.