Patent No. US8204783 (titled "Media properties selection method and system based on expected profit from profile-based ad delivery") on Jun 25, 2010. The application was issued on Jun 19, 2012.
’783 is related to the field of behavioral targeting and electronic advertisement placement. In the digital advertising ecosystem, behavioral targeting (BT) companies track user actions across various websites to build profiles that help advertisers deliver relevant content. A significant technical challenge in this field is the efficient synchronization of these profiles across different domains, as security protocols generally prevent one website from reading cookies or tags set by another. This often results in inefficient ad spend where the cost of reaching a specific user on a secondary site exceeds the value of the advertisement itself.
The underlying idea behind ’783 is to automate the selection of secondary media properties for ad delivery based on a real-time financial feasibility analysis. Rather than indiscriminately tagging users for retargeting across all available partner sites, the system evaluates the expected profit of a potential ad placement before initiating the tagging process. By calculating the delta between what an advertiser is willing to pay for a specific profile attribute and the cost of ad space on a third-party site, the system ensures that the technical overhead of cookie matching and ad serving is only incurred when a positive margin is anticipated.
The claims of ’783 focus on a method and system for authorizing third-party media properties to display advertisements based on profile attributes collected from a first media property. The independent claims specifically describe a process where a visitor is identified at an initial site, and the system automatically authorizes subsequent media properties to serve ads to that visitor. Crucially, this authorization is contingent upon a price-based filter, where the price charged by the third-party media property must be less than the profile-attribute-dependent price an advertiser is willing to pay for that specific visitor.
In practice, the invention operates as a gatekeeper for the cookie-matching process. When a visitor performs a high-value action—such as searching for a mortgage or airline tickets—the system calculates the anticipated revenue by multiplying the advertiser's bid by the expected click-through rate. It then compares this value against the known costs of various ad networks and publishers. If the cost of the secondary media property is too high to sustain a profit, the system may choose not to tag the visitor for that specific property, thereby optimizing the computational and financial resources of the BT company.
This approach differentiates itself from prior art, such as standard retargeting services, by moving the economic decision-making to the point of initial profile collection. Traditional systems typically tag users first and worry about the cost of the ad space later, often leading to negative-margin placements. By integrating a profit-based selection mechanism directly into the tagging workflow, the invention allows for more granular control over retargeting campaigns, ensuring that high-cost ad inventory is only utilized for the most valuable user profiles while lower-value profiles are directed toward more affordable media properties.
In the mid-2000s when ’783 was filed, behavioral targeting was typically implemented using domain-specific cookies that restricted a server's ability to recognize a visitor's activity across disparate web properties. At a time when systems commonly relied on manual media buying or static redirection to deliver advertisements to previously identified users, the coordination between profile suppliers and third-party ad networks was often fragmented. Hardware and software constraints, particularly the technical silos created by browser security models and domain-restricted data access, made the real-time synchronization of user profiles with cost-effective ad inventory non-trivial.
The disclosed invention represents a meaningful technical advancement by integrating real-time financial modeling into the behavioral tagging process. Rather than indiscriminately tagging users for cross-site recognition, the system introduces an architectural shift where a central server calculates the expected profit of a potential advertisement placement—by deducting the specific media cost of a target property from the expected revenue of a profile-linked ad—before initiating a tagging event. This capability enables a more efficient allocation of network resources and data storage by only establishing cross-domain tags when the calculated profit meets defined thresholds, thereby overcoming the technical constraint of inefficient, high-volume data synchronization between profile servers and ad space providers.
This patent contains 51 claims, with claims 1, 18, and 35 serving as the independent claims. The independent claims focus on a method, a computer-server device, and a system for directing electronic advertisements by authorizing third-party media properties to display ads to visitors based on profile attributes and specific pricing or display conditions following a visit to an initial media property. The dependent claims serve to further define the technical implementation, such as building look-up data structures, utilizing electronic redirects, placing readable tags on visitor computers, and establishing specific time-based or category-based conditions for advertisement display.
Definitions of key terms used in the patent claims.
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