1. Field of the Invention
The present invention relates to a method of optimizing advertising. More particularly, the present invention relates to methods of acquiring advertising data and methods of optimizing advertising variable settings in response to acquired data.
2. Background
Advertising is the process through which companies attempt to convince customers to purchase their products. Advertising takes many forms including radio advertisements, in-store audio advertisements, television advertisements, billboards, etc. The production and broadcasting of these advertisements has become more and more expensive. Companies wish to maximize the effect of their advertisements by determining the most effective message to promote. Numerous marketing textbooks and classes discuss this field.
In order to sell advertising to companies, particular information must often be provided which illustrates the effects of the advertising. The advertising industry standard for analyzing the effectiveness of an advertisement is the metric values of reach and frequency with which the advertisement is received by customers. The reach is the percentage of customers who are exposed to the advertisement and the frequency is the number of times an individual customer is exposed to the same advertisement. Companies generally wish to maximize their reach for a certain maximum frequency. This value is generally expressed in the form of a RF curve of reach versus rating points, wherein each rating point has an associated price value. Unfortunately, these metric values are rarely analyzed for in-store advertising because of the availability of sales information.
One of the major obstacles in creating effective advertising is determining a customer's response to a particular advertisement. Traditionally companies have used focus groups and surveys in order to obtain customer response information about their products and/or advertisements. This customer response information can then be used to adjust or manipulate their advertisements. Unfortunately, these techniques of generating customer response information have been found to be inadequate and often inaccurate. Therefore, there is a need for a new method of generating customer response information that is both efficient and reliable.
Another problem with maximizing the effectiveness of advertising is the significant time delay between obtaining the customer response data, creating the advertisement, and broadcasting the advertisement. In many circumstances, the initial data indicating what will be effective in advertising a particular product may expire or become inaccurate. Therefore, there is also a need for a process that is able to efficiently generate an advertisement with respect to time sensitive customer response data.
Yet another problem with maximizing the effectiveness of advertising is the need to identify the most appropriate target audience. Some products are purchased by a wide variety of customers such as toilet paper and toothpaste while others are purchased by only a particular group. A significant loss in advertising effectiveness results if a wide-use product is only advertised to a select group of customers. Therefore, there is a need in the industry for a process of identifying a target group for a particular product, which can then be used to maximize the efficiency of a particular advertisement directed at selling the product.
The present invention relates to methods of measuring customer response and methods of optimizing advertising in response to the customer response data. One embodiment of the present invention relates to a method of acquiring data about the advertising preferences of particular groups of customers. For example, this data may include analyzing the shopping response of all married female shoppers over 40 years of age after a particular advertisement is played; this shopping response could then be compared with the shopping response of a similar group after a different advertisement is played. Another embodiment of the present invention relates to optimizing advertising variable settings with respect to acquired advertising data in an effort to identify optimized advertising variable settings for identifiable groups of customers. Yet another embodiment of the present invention relates to a method of generating an advertisement with optimized advertisement variable settings for an advertising target group. For example, if data indicates that a particular demographic responds to a male advertiser, the advertisement will be spoken with a male voice and played during that time period. Yet another embodiment of the present invention relates to measuring customer response data of various message media and combinations of message media.
This technology provides numerous advantages over the prior art including arbitrary audience targeting and near real time measurement and adjustment. Arbitrary audience targeting allows for advertisements to be tailored to specifically target a particular group of customers. Real time measurement includes identifying the customer response to a particular advertisement.
These and other features and advantages of the present invention will be set forth or will become more fully apparent in the description that follows and in the appended claims. The features and advantages may be realized and obtained by means of the instruments and combinations particularly pointed out in the appended claims. Furthermore, the features and advantages of the invention may be learned by the practice of the invention or will be obvious from the description, as set forth hereinafter.
In order that the manner in which the above-recited and other advantages and features of the invention are obtained, a more particular description of the invention briefly described above will be rendered by reference to specific embodiments thereof which are illustrated in the appended drawings. Understanding that these drawings depict only typical embodiments of the invention and are not therefore to be considered limiting of its scope, the invention will be described and explained with additional specificity and detail through the use of the accompanying drawings in which:
The present invention may be embodied in other specific forms without departing from its spirit or essential characteristics. The described embodiments are to be considered in all respects only as illustrative and not restrictive. The scope of the invention is, therefore, indicated by the appended claims rather than by the foregoing description. All changes that come within the meaning and range of equivalency of the claims are to be embraced within their scope.
The present invention relates to methods of measuring customer response and methods of optimizing advertising in response to the customer response data. One embodiment of the present invention relates to a method of acquiring data about the advertising preferences of particular groups of customers. For example, this data may include analyzing the shopping response of all married female shoppers over 40 years of age after a particular advertisement is played; this shopping response could then be compared with the shopping response of a similar group after a different advertisement is played. Another embodiment of the present invention relates to optimizing advertising variable settings with respect to acquired advertising data in an effort to identify optimized advertising variable settings for identifiable groups of customers. Yet another embodiment of the present invention relates to a method of generating an advertisement with optimized advertisement variable settings for an advertising target group. For example, if data indicates that a particular demographic responds to a male advertiser, the advertisement will be spoken with a male voice and played during that time period. Yet another embodiment of the present invention relates to measuring customer response data of various message media and combinations of message media. While embodiment of the present invention are directed at methods of acquiring advertising data and optimizing advertisements, it will be appreciated that the teachings of the present invention are applicable to other areas.
As used in this specification, the following terms are defined accordingly:
“advertisement” includes all forms of advertising; including but not limited to audio, video, still visual, touch, taste, smell, and any combination thereof.
“optimized advertisement” is an advertisement that is specifically optimized for an advertising target group.
“customer response data” includes identifying various customer reactions to an advertisement with respect to advertising variable settings included in the advertisement. These reactions include but are not limited to purchasing a product, not purchasing a product, changing routine, and leaving the store. Therefore, complete customer response data will include correlating various customer reactions with customer information and advertising variable settings.
“advertising variable settings” include the settings of various variables that affect how an advertisement is perceived. These variables include but are not limited to frequency, duration, play time, volume, gender of speaker(s)/actor(s), sound/video icons, smell icons, taste icons, background music/scenery, sound effects, special effects, presence/absence of pricing information, variations in pricing, variations in offer, value added content, seasonal related message, category promotions, variations on the product message, and promotional offers.
“optimized advertising variable settings” is a set of advertising variable settings that are optimized for a particular advertising target group.
“advertising group” is a group of people who share at least one characteristic or trait.
“advertising target group” is a group of people who share at least one characteristic and who are targeted for a particular advertisement. For example, males over 50 years old may be an advertising target group for a luxury automobile.
“test advertisement” is an advertisement or message that is played for a purpose including but not limited to obtaining customer response data.
“customer response device” is a device that measures a customers response. For example, a loyalty/membership card, a point-of-sale device, a credit-card related device, an RFID, a survey response device, etc.
“customer information device” is a device that transfers information about a customer. A customer information device may or may not be the same as a customer response device. For example, a customer loyalty card includes customer information but an RFID located on a particular product does not contain any customer information.
“advertisement components” are various components of an advertisement that can be used independently or compiled with other components to create a complete advertisement. For example, various prices may be recorded for an audio advertisement and then compiled with other information into complete advertisements as the price of a particular item is lowered.
“optimization algorithm” is a procedure that is used to obtain the most efficient variable setting for a unique input. For example, if a store has 2 women, 8 men, and 4 children, an optimization algorithm could utilize known data to determine what is the most efficient set of advertising variable settings for that particular scenario. Likewise, an optimization algorithm can be used to determine the optimum advertising variable settings for a particular advertising group in relation to a set of customer response data.
“metric” is a standard customer response measurement including but not limited to reach, frequency, sales, awareness, etc.
“media” is the vehicle through which an advertisement or message is broadcast to customers. Media includes but is not limited to audio, video, shopping cart, billboard, television, radio, internet, smell, touch, taste, in-store media, out-of-store media, and any combination thereof.
The following disclosure of the present invention is grouped into three subheadings, namely “Exemplary Operating Environment”, “Advertisement Optimization”, and “Measuring Customer Response.” The utilization of the subheadings is for convenience of the reader only and is not to be construed as limiting in any sense.
Embodiments of the present invention embrace one or more computer readable media, wherein each medium may be configured to include or includes thereon data or computer executable instructions for manipulating data. The computer executable instructions include data structures, objects, programs, routines, or other program modules that may be accessed by a processing system, such as one associated with a general-purpose computer capable of performing various different functions or one associated with a special-purpose computer capable of performing a limited number of functions. Computer executable instructions cause the processing system to perform a particular function or group of functions and are examples of program code means for implementing steps for methods disclosed herein. Furthermore, a particular sequence of the executable instructions provides an example of corresponding acts that may be used to implement such steps. Examples of computer readable media include random-access memory (“RAM”), read-only memory (“ROM”), programmable read-only memory (“PROM”), erasable programmable read-only memory (“EPROM”), electrically erasable programmable read-only memory (“EEPROM”), compact disk read-only memory (“CD-ROM”), or any other device or component that is capable of providing data or executable instructions that may be accessed by a processing system.
With reference to
Computer device 10 includes system bus 12, which may be configured to connect various components thereof and enables data to be exchanged between two or more components. System bus 12 may include one of a variety of bus structures including a memory bus or memory controller, a peripheral bus, or a local bus that uses any of a variety of bus architectures. Typical components connected by system bus 12 include processing system 14 and memory 16. Other components may include one or more mass storage device interfaces 18, input interfaces 20, output interfaces 22, and/or network interfaces 24, each of which will be discussed below.
Processing system 14 includes one or more processors, such as a central processor and optionally one or more other processors designed to perform a particular function or task. It is typically processing system 14 that executes the instructions provided on computer readable media, such as on memory 16, a magnetic hard disk, a removable magnetic disk, a magnetic cassette, an optical disk, or from a communication connection, which may also be viewed as a computer readable medium.
Memory 16 includes one or more computer readable media that may be configured to include or includes thereon data or instructions for manipulating data, and may be accessed by processing system 14 through system bus 12. Memory 16 may include, for example, ROM 28, used to permanently store information, and/or RAM 30, used to temporarily store information. ROM 28 may include a basic input/output system (“BIOS”) having one or more routines that are used to establish communication, such as during start-up of computer device 10. RAM 30 may include one or more program modules, such as one or more operating systems, application programs, and/or program data.
One or more mass storage device interfaces 18 may be used to connect one or more mass storage devices 26 to system bus 12. The mass storage devices 26 may be incorporated into or may be peripheral to computer device 10 and allow computer device 10 to retain large amounts of data. Optionally, one or more of the mass storage devices 26 may be removable from computer device 10. Examples of mass storage devices include hard disk drives, magnetic disk drives, tape drives and optical disk drives. A mass storage device 26 may read from and/or write to a magnetic hard disk, a removable 10 magnetic disk, a magnetic cassette, an optical disk, or another computer readable medium. Mass storage devices 26 and their corresponding computer readable media provide nonvolatile storage of data and/or executable instructions that may include one or more program modules such as an operating system, one or more application programs, other program modules, or program data. Such executable instructions are examples of program code means for implementing steps for methods disclosed herein.
One or more input interfaces 20 may be employed to enable a user to enter data and/or instructions to computer device 10 through one or more corresponding input devices 32. Examples of such input devices include a keyboard and alternate input devices, such as a mouse, trackball, light pen, stylus, or other pointing device, a microphone, a joystick, a game pad, a satellite dish, a scanner, a camcorder, a digital camera, and the like. Similarly, examples of input interfaces 20 that may be used to connect the input devices 32 to the system bus 12 include a serial port, a parallel port, a game port, a universal serial bus (“USB”), a firewire (IEEE 1394), or another interface.
One or more output interfaces 22 may be employed to connect one or more corresponding output devices 34 to system bus 12. Examples of output devices include a monitor or display screen, a speaker, a printer, and the like. A particular output device 34 may be integrated with or peripheral to computer device 10. Examples of output interfaces include a video adapter, an audio adapter, a parallel port, and the like.
One or more network interfaces 24 enable computer device 10 to exchange information with one or more other local or remote computer devices, illustrated as computer devices 36, via a network 38 that may include hardwired and/or wireless links. Examples of network interfaces include a network adapter for connection to a local area network (“LAN”) or a modem, wireless link, or other adapter for connection to a wide area network (“WAN”), such as the Internet. The network interface 24 may be incorporated with or peripheral to computer device 10. In a networked system, accessible program modules or portions thereof may be stored in a remote memory storage device. Furthermore, in a networked system computer device 10 may participate in a distributed computing environment, where functions or tasks are performed by a plurality of networked computer devices.
Reference is next made to
After a sufficient amount of customer response data has been obtained or generated, an advertising target group must be identified, step 230. An advertising target group is a group of individuals who have at least one trait or characteristic in common and who are targeted for a particular advertisement. For example, males over 50 years old may be an advertising target group. The advertising target group can be identified manually by determining the optimum target audience of a particular advertisement or could be determined automatically based on current customer population of a store at a particular time. For example, the manufacturer of aftershave may target males between the ages of 18 and 60. Alternatively, a manufacturer of toilet paper may wish the advertisement be automatically targeted to the current population of customers in the store. Various techniques and technology could be used for automatically identifying the current customer population at a particular store. For example, stores may require customers to scan their loyalty cards when they enter the store in order to obtain a cart. The customer loyalty card could then be used to provide customer information about the customer to a computer that maintains a constant tally of the demographics of the current customers. A method of automatically identifying current customers and manipulating advertisements accordingly is also discussed with respect to
Once the advertising target group is identified, an advertisement is generated with optimized advertising variable settings, step 250. Therefore, if one of the optimized advertising variable settings for the target advertising group is a male speaker in an audio advertisement, the advertisement will be generated with a male speaker. The generated advertisement may include one or flexible advertising variable settings depending on the objectives of the advertising company. Some advertising variable settings are almost always flexible such as volume and frequency. However, other advertising variable settings require that the producer of the advertisement add additional content to allow for flexibility such as price quotes, gender of speaker, seasonal greetings, etc. This additional content is known as advertising components. In this respect, an advertisement may be recorded with two different voices that may appeal to two different advertising target groups. In addition, if the step of generating customer data 210 did not include providing a list of optimized variable settings for all advertising groups, the producer of the advertisement may need to analyze the customer data manually and select the desired format of the advertisement. Alternatively, portions of the step of generating an advertisement with optimized variable settings 250 may be performed automatically by a computer as discussed with respect to
Once the optimized advertisement is generated, the optimized advertisement is broadcast, step 270. Broadcasting the advertisement includes all forms of exposing the public to the advertisement including hanging a poster, playing an audio track, playing a video track, distributing a smell, or any combination thereof. Since the time of day and the location of an advertisement are important advertising variable settings, the broadcasting of the advertisement will also need to be consistent with the optimized set of variables. Likewise, the advertisement may also be broadcast at additional non-optimized times or locations as a test advertisement for obtaining more customer response data.
Reference is next made to
Once the plurality of test advertisements are broadcasted, the advertising variable settings of each of the test advertisements are analyzed in relation to the corresponding customer response data, step 214. It is desirable to attempt to correlate which advertising variable settings affect which customer groups by identifying which test advertisements cause customers to respond in positive ways. Naturally, some customer groups will overlap with one another and certain advertising variable settings may affect customer groups in different ways. This analysis can be performed manually, automatically, or some combination thereof. Various automatic computer algorithms could be used which are known to those skilled in the art.
Once the analysis is complete, a set of optimized advertisement variables is created for a particular advertising target group, step 216. The set of optimized advertising variable settings may or may not be a complete set of advertising variable settings. For example, women under 18 may prefer a female voice, at high volume, repeated frequently, a rose smell, and with lots of sound effects. This set of optimized advertising variable settings is not a complete set of advertising variable settings and will allow the remaining variables to be set at random or set for another purpose.
Reference is next made to
Reference is next made to
Once all the necessary advertising components are created, the complete advertisement is compiled utilizing components that correspond to a set of optimized advertising variable settings, step 510. This step may be performed manually or automatically depending on the application. For example, if an advertiser only wants to optimally target a single customer group in one particular location, a single version of the advertisement may be manually compiled and transferred to the location. However, if the advertiser wishes the advertisement to be part of a dynamic advertising system, the advertisement may be compiled automatically by a computer in response to a particular situation. A dynamic advertising system is described in more detail with reference to
Reference is next made to
Once information is obtained about current customers, a set of optimized advertising variable settings can be dynamically determined that will maximize the affect of an advertisement, step 610. The optimized advertising variable settings may be the optimal variable settings for the most prevalent customer group in the store or they may be a custom set of advertising variable settings that is a statistically generated to maximize the affects of an advertisement. Various other techniques may also be used to determine the optimized advertisement variable settings.
After the optimized advertising variable settings are established, an advertisement is generated in accordance with the optimized advertising variable settings, step 615. The advertisement is dynamically generated in order to capitalize on the narrow time frame in which the advertising variable settings are optimized. The advertisement is compiled using advertisement components that are previously created in order to allow for flexibility in various advertising variable settings.
Reference is next made to
The metric values each contain a different type of information about how a particular media affects customers. Reach 712 is a percentage value of customers who received the message via the corresponding media 720. Frequency 714 is the number of times a customer received the message via the corresponding media 720. Sales 714 are the revenue generated from customers in response to the corresponding media 720. Awareness includes the percentage of customers who are aware of the product as a result of the media 720. Likewise, any similar measurement or combination of measurements may be considered a metric 710 for purposes of this application.
Metric values are not necessarily directly measured but can be extrapolated from other information with a variety of techniques. For example, in a store environment customer response devices enable the recordation of various customer responses after an advertisement or message is broadcast. These responses include purchasing products, altering a standard shopping path, leaving the store, etc. Various customer response devices and customer response data processes may be used to determine metric values and remain consistent with the present invention.
The media 720 are various channels over which to convey information to customers. In-Store (IS) means that the media is limited to the store environment as opposed to out of store (OS) general media. Audio, Video, Cart, etc refer to the specific type of media. For example, IS audio could include the store-wide intercom system in a grocery store. IS audio could also include an audio message played in front of a particular product. IS video could include a screen that displays video images in a certain portion of a store. IS cart refers to various forms of media which may be located on a shopping cart including billboard, audio, video, smell, etc. Messages or advertisements can be broadcast by individual media or combinations of synchronized media to produce different customer responses. In addition, media can be broadcast in local stores or throughout a chain or network. The term local means that the media is only broadcast in one store which may have unique characteristics. The term chain refers to media that is broadcast in a group of stores. By identifying the metrics associated with various media combinations and permutations, it is possible to determine the optimum media combinations for particular messages and advertisements.
Reference is next made to
Likewise, the other illustrated curves graph metric values for particular media or media combinations. The second curve is an RF IS Video curve versus money spent 820. The actual curve is irregularly shaped making it difficult to clearly determine how much money to spend on advertising for this form of media. The third curve is an RF IS Cart curve versus money spent 830. This curve appears linear meaning that there is an equal RF response for any amount of money spent. The fourth curve is an IS Audio+IS video curve versus money spent 840. This curve is unique in that it is analyzing the metric value for a combination of media. It appears on the curve, after a certain amount of money is spent, no additional RF response is achieved. Curve 840 therefore gives additional information over simply analyzing curves 810 and 820 individually. Likewise, the fifth curve is an RF IS Audio+IS Video+IS Cart curve versus money spent 850. In addition, the combination curves 840, 850 provide a metric for the combined media which may be significantly different than simply adding the two individual curves. For example, if an advertisement is broadcast over an IS Audio media and is also simultaneously broadcast over an IS Video media, the combined effect may be to annoy customers causing the metrics to decrease. Whereas, taken individually the IS Audio and the IS video may produce a particular result, it is not clear how customers will respond to the combination without actually analyzing the combination.
The RF value on each of the curves could be replaced with any metric value including but not limited to frequency, sales, awareness ,etc. Likewise, the media or media combination could be replaced with any media permutation contemplated by those skilled in the art. In addition, other variables could be incorporated into this analysis to produce more pertinent information for a particular advertising target group. For example, single, white, males between the ages of 20 and 40 may produce different metric values than married, asian, females over 50 years of age. It is also possible to plot multiple metric media values on a single graph to indicate the most efficient use of a particular amount of money. For example, curves 810, 820, 830, 840, and 850 could be plotted on the same graph to illustrate which of the media combinations is most effective. Various other data graphing techniques known in the art are consistent with the present invention including three dimensional graphing, color charts, etc.
Combination metrics may be obtained in various ways and remain consistent with the present invention. In a store environment these techniques generally include obtaining customer response data from customer response devices such as loyalty cards. In order to correlate the customer response information with multiple media messages particular techniques may be used including random duplication, personal probability, and other duplication methodologies. These techniques are known to those skilled in the art of numerical analysis.
Thus, as discussed herein, the embodiments of the present invention embrace systems and methods for measuring customer response and optimizing advertising. More particularly, the present invention relates to a method of acquiring advertising data and a method of optimizing advertising variable settings in response to acquired data. The present invention may be embodied in other specific forms without departing from its spirit or essential characteristics. The described embodiments are to be considered in all respects only as illustrative and not restrictive. The scope of the invention is, therefore, indicated by the appended claims rather than by the foregoing description. All changes that come within the meaning and range of equivalency of the claims are to be embraced within their scope.
This is a continuation-in-part application of U.S. application Ser. No. 10/983,789, filed Nov. 8, 2004, which is a continuation-in-part application of U.S. application Ser. No. 10/822,545, filed Apr. 12, 2004 which claims priority to U.S. provisional application Ser. No. 60/541,542, filed Feb. 3, 2004.
Number | Date | Country | |
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60541542 | Feb 2004 | US |
Number | Date | Country | |
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Parent | 10983789 | Nov 2004 | US |
Child | 11047251 | Jan 2005 | US |
Parent | 10822545 | Apr 2004 | US |
Child | 10983789 | Nov 2004 | US |