Patent Publication Number: US-2003225613-A1

Title: Method and system for customizing the content of targeted advertising

Description:
TECHNICAL FIELD  
       [0001] Embodiments of the present invention are directed to the field of retail marketing methods. More specifically, embodiments of the present invention pertain to a method for customizing the content of targeted advertising.  
       BACKGROUND ART  
       [0002] A critical task for advertisers is to deliver their message to a receptive audience. This allows advertisers to minimize advertising budgets and to customize advertisements for the same product to address particular customer segments more effectively. Thus the concept of targeted advertising is becoming more important. In an idealized model of targeted advertising, the content of the advertisement is customized to create a personalized message for each prospective customer. While this maximizes the effectiveness of the advertisement, gathering information on each likely customer is currently prohibitive both in cost and the amount of effort required. Therefore, advertisers still direct their advertising toward demographic groups rather than individual customers.  
       [0003] For example, radio is a popular advertising medium which relies upon listener demographics to provide advertisers fairly specific customer segments. Radio stations have relatively specific audience demographics due to the segmented nature of their listening audience. This allows advertisers to target customer segments with some degree of accuracy based upon the demographics of the radio station&#39;s listeners. However, radio advertising is still directed toward broad characterizations of listener groups rather than targeting a specific customer. Similarly, magazines provide advertisers with some degree of customer segmentation. However, as with radio, magazines can only offer broad characterizations of subscribers rather than customer specific information. Thus, with both radio and magazines, the advertiser can identify more specific customer segments which are more likely to be receptive to their message. However, most demographic groups are also likely to contain populations of disinterested consumers who are not receptive to the advertiser&#39;s message.  
       [0004] Modern communications media such as the Internet are increasingly used to deliver advertising that is targeted more specifically to smaller customer segments. This is possible because numerous Web sites and/or E-mails which target smaller customer segments can be created and distributed quickly and economically. As customers do business with a Web sites, the Web site gains information about them. However, Web sites initially have no demographic information about their visitors. Printed advertisements are also increasingly targeted to smaller, more specific customer segments. For example, computer controlled printing allow advertisers to more effectively target smaller customer segments because they can print small batches of advertisements more efficiently. However, to accurately identify and target customer segments, these advertising methods still need accurate customer information which may be difficult to obtain. For example, unlike a radio station, a retail Web site typically does not have a readily identified customer demographic.  
       [0005] Therefore, prior art methods for delivering customized advertising content to customers is problematic because of the difficulty in providing customer specific demographic information. This limits the effectiveness of new advertising media which are capable of targeting small demographic groups but lack the required information to do so accurately.  
       A METHOD AND SYSTEM FOR CUSTOMIZING THE CONTENT OF TARGETED ADVERTISING IS DISCLOSED  
       [0006] A record is created of in-store behavior which has at least one item of expressed interest. A targeted message is then created which has information about the item of expressed interest. The targeted message is then sent to a specific audience.  
     
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
     [0007] The accompanying drawings, which are incorporated in and form a part of this specification, illustrate embodiments of the present invention and, together with the description, serve to explain the principles of the invention. Unless specifically noted, the drawings referred to in this description should be understood as not being drawn to scale.  
     [0008]FIG. 1 illustrates a method for customizing the content of targeted advertising in accordance with embodiments of the present invention.  
     [0009]FIG. 2 is a block diagram of a database system used in accordance with embodiments of the current invention.  
     [0010]FIG. 3 is a flow chart of a method for customizing content of targeted advertising in accordance with embodiments of the present invention.  
     [0011]FIG. 4 is a block diagram of a method for customizing the content of targeted advertising in accordance with embodiments of the present invention.  
     [0012]FIG. 5 illustrates a system utilizing a Bluetooth enabled device to identify an item of expressed interest in accordance with embodiments of the present invention.  
     [0013]FIG. 6 is a flow chart of an exemplary method for identifying an item of expressed interest in accordance with one embodiment of the present invention.  
     [0014]FIG. 7 is a flow chart of an exemplary method for identifying an item of expressed interest in accordance with one embodiment of the present invention.  
    
    
     MODES FOR CARRYING OUT THE INVENTION  
     [0015] Reference will now be made in detail to embodiments of the present invention, examples of which are illustrated in the accompanying drawings. While the present invention will be described in conjunction with the following embodiments, it will be understood that they are not intended to limit the present invention to these embodiments alone. On the contrary, the present invention is intended to cover alternatives, modifications, and equivalents which may be included within the spirit and scope of the present invention as defined by the appended claims. Furthermore, in the following detailed description of the present invention, numerous specific details are set forth in order to provide a thorough understanding of the present invention. However, embodiments of the present invention may be practiced without these specific details. In other instances, well-known methods, procedures, components, and circuits have not been described in detail so as not to unnecessarily obscure aspects of the present invention.  
     [0016] Embodiments of the present invention are directed to a method and system for customizing the content of targeted advertising. In accordance with embodiments of the present invention, the content of targeted advertising can be customized based upon the in-store shopping experience of a specific audience (e.g., a customer). More specifically, a customer in a store identifies a product that interests them and communicates that they would like to receive more information about that product or similar products. In one embodiment of the present invention, a record of items in which a customer has expressed an interest is created. This record is used to define a broader category of products in which the customer may also be interested. For example, this category may include the item in which the customer has expressed an interest as well as similar products and other items which may be used in conjunction with the item of expressed interest. The content of a targeted advertisement is then customized to convey information to the customer about the category of products. In other words, the advertiser (e.g., a retailer) can customize the content of advertisements sent to the customer based upon the customer&#39;s in-store behavior.  
     [0017] Embodiments of the present invention facilitate identifying smaller customer segments and customizing the content of targeted advertising to address these customer segments more specifically based upon their in-store behavior. In one embodiment, the present invention can be used to customize the content of targeted advertising to the level of the individual customer. This allows advertisers to create a personalized Web page or printed advertisement for a particular customer and increases the effectiveness of the advertising by addressing the customer&#39;s unique preferences. While embodiments of the present embodiment recite utilizing Web pages or printed advertisements, the present invention is well suited to utilize a variety of other communications media as well.  
     [0018]FIG. 1 illustrates a method for customizing the content of targeted advertising in accordance with embodiments of the present invention. In FIG. 1, a retailer  101  is a traditional “brick and mortar” retailer offering a product or service and is utilizing an embodiment of the present invention to gather information about in-store customer behavior in order to customize the content of a targeted advertisement which will be sent to the customer. A customer  102  expresses interest in an item  103  offered by retailer  101 .  
     [0019] There are a variety of methods for a customer to identify item  103  as being an item of expressed interest in accordance with the present invention. Retailer  101  implements a system  104  for collecting in-store information which customer  102  uses to identify item  103 . For example, in one embodiment, system  104  comprises cards which customer  102  can fill out and which indicate to retailer  101  that customer  102  is interested in item  103  and is interested in receiving additional information about item  103  and/or related items. In another embodiment, system  104  comprises a Universal Product Code (UPC) scanner can be used to record an item that the customer is interested in. For example, a retailer can distribute UPC scanners to customers as they enter the store. The customer can then scan UPC codes of items in which they are interested. Upon leaving the store, the customer returns the UPC scanner to the retailer who then downloads the UPC codes into a computer system  105 .  
     [0020] In another embodiment, system  104  comprises credit card information. For example, customer information is easily obtained when a customer makes a purchase using a credit card, especially when retailer issued or proprietary credit cards are used to purchase item  103 . Thus, credit card sales information can be stored in computer system  105  and used to customize the content of targeted advertisements sent to customer  102  from retailer  101 .  
     [0021] In another embodiment of the present invention, system  104  comprises customer  102  using a Personal Digital Assistant (PDA) to identify item  103 . For example, some PDAs can be coupled with a peripheral device to create a UPC scanner. The PDA scanner can be used to scan the UPC code on a product in which the customer is interested. Customer  102  can then download the UPC codes of item  103  into computer system  105  when leaving the store and retailer  101  can create a record of the in-store behavior of customer  101  using this information. The UPC codes can be downloaded, for example, by inserting the PDA into a cradle which communicatively couples the PDA to computer system  105 , or by using a wireless communications device coupled with the PDA which downloads the UPC codes to a wireless device coupled with computer system  105 .  
     [0022] In another embodiment, system  104  comprises customer  102  wirelessly querying a device associated item  103 . For example, many PDAs are coupled with a Bluetooth device which allows the PDA to communicate in a wireless network. Bluetooth is the code name for a technology specification for small form factor, low-cost, short-range radio links between personal computers, mobile phones and other devices and appliances. The Bluetooth technology replaces the cables that typically connect one device to another with short-range radio links. Bluetooth connections are generally ad hoc connections made between devices only for the length of time needed to accomplish a specific, perhaps time-limited communications session. Once the communications session is completed, the connection is broken. Normally, the range of Bluetooth links is set to approximately ten meters. However, to support other uses, the range of Bluetooth links can be augmented to extend the range up to 100 meters.  
     [0023] For example, in one embodiment a Bluetooth device is attached to item  103  in a manner similar to a sales tag. Customer  102  can query the Bluetooth device and receive onto their PDA information which identifies item  103 . This identification information can be stored on the PDA of customer  102  and downloaded into computer system  105  when customer  102  leaves the store.  
     [0024] Computer system  105  is used to store information about customer behavior which will be used to customize the content of targeted advertising based upon the items in which customer  102  has expressed an interest. In one embodiment, computer system  105  comprises a data storage  106  and a computer  107  which is used to create customized targeted advertising. In one embodiment, the customized advertisement is a Web page published on Internet  108 . In another embodiment, the customized advertisement is a printed advertisement  117  created on a printing system  110  coupled with computer system  105 . While the present invention recites these media for communicating a targeted advertisement to a customer, the present invention is well suited to utilize other communications media as well.  
     [0025] In one embodiment, the data of the in-store behavior of customer  102  is used to create a customized targeted advertisement  111  which communicates information about item  103  via Internet  108 . In one embodiment, targeted advertisement  111  is a Web page having customized content based upon the in-store behavior of customer  102 . For example, customer  102  can go to the Web site of retailer  101  from their home  112 . Customer  102  can provide a name and identification number to be directed to a customized Web page  111 . Web page  111  is customized by retailer  101  to provide information about item  103  in which customer  102  had previously expressed an interest. In another embodiment, targeted advertisement  111  is a customized E-mail message which is sent to customer  102  having information about item  103 . In so doing, the present invention provides a method for customizing the content of targeted advertising which is based upon the in-store behavior of a customer.  
     [0026] A second customer  113  can express an interest in an item offered by retailer  101  and receive a second targeted advertisement  114 . For example, customer  113  can go to the Web site of retailer  101  from their home  115  and provide a name and identification number to be directed to a customized targeted advertisement  114 . Targeted advertisement  114  can be a Web page or E-mail having customized content based upon the in-store behavior of customer  113 .  
     [0027] A third customer  116  expresses an interest in an item offered by retailer  101  and receives a printed advertisement  117  at their home  11   8 . Printed advertisement  117  contains information about an item and/or related items which may be of interest to customer  116 . The content of printed advertisement  117  is customized according to the in-store behavior of customer  116 . Previously, customized mass mailing advertising was not economically feasible for most advertisers. Therefore, the content of the advertisement was directed to demographic groups as a whole rather than individual consumers. However, embodiments of the present invention utilize computer controlled printing systems to facilitate customizing the content of targeted advertising by identifying customer specific content for the advertisements and provide the capability for printing a customized message for each recipient.  
     [0028] Thus, the present invention facilitates customizing the content of targeted advertising based upon a customer&#39;s in-store behavior. The retailer can use this in-store behavior information to accurately identify smaller demographic groups. Additionally, the present invention facilitates customizing the content of targeted advertising to the level of the individual customer. This allows the retailer to customize the content of their advertising to address the unique needs and interests of the individual customer which makes the advertising much more effective in reaching receptive audience. Therefore, embodiments of the present invention can reduce the costs of advertising because advertisers can now send smaller advertisements which are customized to the individual customer&#39;s expressed interests.  
     [0029]FIG. 2 illustrates one embodiment of a system  200  which can be used for customizing the content of targeted advertising in accordance with embodiments of the present invention. Data  250  from data sources (e.g., retailer  101 ) is received into data storage  201 . In various embodiments of the present invention, data  250  includes the item of expressed interest as well as other customer specific information. The customer specific information can include contact information about a customer that enables a retailer to deliver the targeted message to the customer (e.g., the customer&#39;s home address, E-mail address, or other information which uniquely identifies the customer to the retailer). Typically, data storage  201  uses a high capacity mass storage device such as a disk drive, optical drive, tape drive, etc. In one embodiment, data storage  201  is a data warehouse which is coupled to a database management system (DBMS)  204  by analytic data interface  202 . DBMS  204  is used to execute a data analysis application such as a categorization application. In one embodiment, an application server  203  can be interposed between the DBMS  204  and a computer system  205 . Application server  203  may incorporate DBMS  204 , or these may be separate entities. In one embodiment, computer system  205  is a Web server which delivers targeted advertisement  206  in the form of a customized Web page. In another embodiment, computer system  205  is a computerized printing system used to create a targeted message in the form of a printed advertisement.  
     [0030] In one implementation of the present invention, a record is created on data storage  201  of a customers in-store behavior. For example, the customer designates an item of expressed interest and indicates to a retailer that they would like to receive more information about this item. In one embodiment, the retailer creates a category using DBMS  204  which associates the item of expressed interest with other related items according to shared attributes of the items.  
     [0031]FIG. 3 is a flow chart  300  of a method for customizing the content of targeted advertising in accordance with embodiments of the present invention. In step  310  of FIG. 3, a record is created of in-store behavior having at least one item of expressed interest. In one embodiment of the present invention, a customer identifies an item as an item of expressed interest and indicates that they would like to receive more information about the item of expressed interest and/or related items. The item of expressed interest may be a product or service purchased by a customer or a product or service in which the customer has otherwise indicated some interest. For example, customers will often defer purchasing a product until they can compare the price or performance with similar products. Using the present invention, a retailer can communicate pertinent information to a customer by customizing the content of targeted advertising to include information about the item of expressed interest as well as related items and thus allow the customer to compare products before purchasing them.  
     [0032] Referring to step  320  of FIG. 3, a targeted message is created which has information about the item of expressed interest. According to embodiments of the present invention, the content of the targeted message is customized to convey information about the item of expressed interest and/or similar items to the customer. Additionally, the content of the targeted message may contain information about other items which may be used in conjunction with the item of expressed interest. In one embodiment, the targeted message can include information which describes how an item can be used in conjunction with items previously purchased by the customer. For example, if a customer previously purchased a home computer system, and identifies to the same retailer, a digital camera as an item of expressed interest, the retailer can include information in the targeted message which tells the customer how the item of expressed interest can be used with their home computer system.  
     [0033] Referring to step  330  of FIG. 3, the targeted message is sent to a specific audience. In one embodiment, the targeted message is a Web page which is customized to communicate information about the item of expressed interest. For example, a customer accessing the main page of a retailer&#39;s Web site can enter a unique identification and be directed to a Web page having customized content which contains information about the item of expressed interest and/or related items. In another embodiment, the targeted message is an E-mail message which is customized to communicate information about the item of expressed interest and/or related items. Thus, in accordance with one embodiment of the present invention, a targeted message is sent to a specific customer, the content of which has been chosen based upon the customer&#39;s previous in-store behavior. The content of the customized Web page can easily be updated in response to the customer identifying an item and thus allows the retailer to address the customer&#39;s unique interests based upon their in-store behavior.  
     [0034] In another embodiment, the targeted message is a printed advertisement which is customized to communicate information about the item of expressed interest. Previously, customized mass mailing advertising was not economically feasible for most advertisers. Therefore, the content of the advertisement was directed to demographic groups as a whole rather than individual consumers. However, computer controlled printing systems facilitate customizing the content of targeted advertising to the individual due to their ability to quickly change the content of the documents they create. Embodiments of the present invention facilitate customizing the content of customized mass mailing advertising by identifying customer specific information which can be used to customize the content of advertisements.  
     [0035]FIG. 4 is a block diagram of a method for customizing the content of targeted advertising in accordance with embodiments of the present invention. A record  420  is created of in-store behavior of a customer (e.g., customer  102  of FIG. 1). In accordance with embodiments of the present invention, record  420  has information recording at least one item of expressed interest (e.g., item  103  of FIG. 1). Customer  102  indicates to retailer  101  that they are interested in item  103  and would like to receive information about item  103  and/or related items. Item  103  can be a product or service purchased by customer  102  or an item or service in which customer  102  has otherwise indicated some interest. For example, customers will often defer purchasing an item until they can compare the price or performance with similar products. Using the present invention, a retailer can communicate pertinent information to a customer by customizing the content of targeted advertising to include information about item  103  as well as relate items and thus allow the customer to compare products before purchasing them.  
     [0036] In one embodiment of the present invention, a category  430  is created which associates item  103  with at least one related item  435 . Categorization can be defined as grouping items according to shared attributes. In one embodiment of the present invention, the retailer assigns attributes to items (e.g., products or services) offered by their store. For example, a blender can be categorized under the heading of consumer electronics and sub-categorized as a kitchen appliance, etc. It is appreciated that there are a variety of categorization methods which can be used in accordance with the present invention. In addition to including items which are similar to item  103 , category  430  may also include items that can be used in conjunction with item  103 . For example, if item  103  is a television, category  430  may also include Digital Video Disk (DVD) devices, or other items which may be used in conjunction with the television. In another embodiment, category  430  can be used to more accurately identify small demographic groups that receive targeted advertising that is customized based upon their in-store behavior rather than individual customers.  
     [0037] A targeted message  440  is created which has information about category  430 . According to embodiments of the present invention, the content of targeted message  440  is customized to convey to the customer, information about items in category  430 . For example, in one embodiment the content of targeted message  440  contains information about item  103  and/or information about similar products or services (e.g., related items  435 ) within category  430 . Additionally, the content of targeted message  440  may contain information about other items which may be used in conjunction with item  103 . In one embodiment, targeted message  440  can include information which describes how an item in category  430  can be used in conjunction with items previously purchased by the customer. For example if customer  102  previously purchased a home computer system from retailer  102 , and identifies to retailer  101  a digital camera as item  103 , retailer  101  can include information in targeted message  440  which tells customer  102  how item  103  can be used in conjunction with their previously purchased home computer system.  
     [0038] As mentioned above, in one embodiment, targeted message  440  is a Web page  450  which is customized to communicate information about category  430 . The content of Web page  450  can easily be updated in response to a customer identifying an item in which they are interested and thus allow retailers to address the customer&#39;s unique interests based upon their in-store behavior. For example, retailer  101  can store a plurality of Web pages about the products or services they offer on their Web server (e.g., computer system  205  of FIG. 2). When customer  102  provides some form of identification, category  430  is searched for a list of items in which customer  102  has expressed an interest as well as any related items. The individual Web pages of these items are combined and presented to customer  102  as a customized Web page. In a similar manner, a printed advertisement  460  can be sent to customer  102 . In this embodiment, a computerized printing system is used to control and customize the content of printed advertisement  460 .  
     [0039]FIG. 5 illustrates system utilizing a Bluetooth enabled device to identify an item of expressed interest in accordance with embodiments of the present invention. In one embodiment, a customer can utilize a Bluetooth enabled Personal Digital Assistant  510  to initiate communications with a Bluetooth enabled device  520 . In one embodiment, Bluetooth device  520  is attached to an item (e.g., item  103  of FIG. 1) in a retail store. Alternatively, Bluetooth device  520  can be in the vicinity of item  103  and in some manner indicate that it is associated with item  103 . The customer can initiate communications with Bluetooth device  520  to get information identifying item  103  with which Bluetooth device  520  is associated. The customer can store this information on PDA  510  as well as information about other items until they leave the store. The customer can then download the information identifying item  103  into kiosk  530 . In one embodiment, this downloading can be accomplished wirelessly, for example by initiating Bluetooth communications with kiosk  530  and sending the information identifying item  103  wirelessly. In another embodiment, PDA  510  can be inserted into a cradle of kiosk  530  which communicatively couples PDA  510  to the computer system (e.g., system  200  of FIG. 2) of the retailer.  
     [0040] In another embodiment, the customer can store personal identity information on PDA  510 . When the customer sees an item of interest, they can wirelessly transmit this identity information to Bluetooth device  520 . Bluetooth device  520  can be coupled with the computer system of retailer  101  and create a record associating the customer identity information with the particular product device  520  is associated. Alternatively, Bluetooth device  520  can wirelessly transmit this data to a Bluetooth enabled hub  540  which is coupled to the retailers computer system.  
     [0041]FIG. 6 is a flow chart of an exemplary method for identifying an item of expressed interest (e.g., item  103  of FIG. 1) in accordance with one embodiment of the present invention In step  610  of FIG. 6, a customer (e.g., customer  103  of FIG. 1) queries a Bluetooth enabled device  520  attached to an item of expressed interest (e.g., item  103  of FIG. 1). In one embodiment of the present invention, a customer uses a Bluetooth enabled PDA (e.g., PDA  510  of FIG. 5) to initiate a wireless communications session with Bluetooth device  520 . Bluetooth device  520  can, for example, be attached to item  103  in a manner similar to a sales tag. Alternatively, Bluetooth device  520  can be in the vicinity of item  103  and in some manner indicate to customer  102  that it is to be queried in order to identify item  103 .  
     [0042] In step  620  of FIG. 6, Bluetooth device  520  responds wirelessly to the customer query of step  610  with information identifying item  103 . Bluetooth enabled device  520  can be configured to automatically respond to a properly formatted query with information identifying item  103 . For example, Bluetooth device  520  can send a UPC code to PDA  510  which uniquely identifies item  103 . While the present embodiment recites using a UPC code, the present invention is well suited to utilize a variety of methods for identifying item  103 .  
     [0043] In step  630  of FIG. 6, the customer downloads information identifying item  103 . For example, this can be accomplished by providing a kiosk  530  in the store to which the customer downloads the information received in step  620  from PDA  510 . Kiosk  530  can be equipped with a Bluetooth device which allows the customer to wirelessly transmit the information identifying item  103  as well as information identifying the customer to the retailer. Alternatively, kiosk  530  can have a communications port coupled with a cradle for receiving and initiating communications with PDA  510 . The cradle provides an electrical and mechanical communications interface to two-way communications between PDA  510  and kiosk  530 . Kiosk  530  can be connected to the retailers computer network (e.g., system  200  of FIG. 2) and the downloaded information is then used to create a record (e.g., record  420  of FIG. 4) which is used to create the customized content of targeted message  440 .  
     [0044]FIG. 7 is a flow chart of an exemplary method for identifying an item of expressed interest (e.g., item  103  of FIG. 1) in accordance with one embodiment of the present invention In step  710  of FIG. 7, a customer sends identity information to a Bluetooth device attached to item  103 . In the embodiment of FIG. 7, identity information (e.g., a customer&#39;s name and address) is stored on their PDA (e.g., PDA  510  of FIG. 5). When the customer sees an item (e.g., item  103 ) in a store in which they are interested, they can initiate a Bluetooth communications session with Bluetooth enabled device  520  attached to item  103 . Upon establishing communications with Bluetooth device  520 , the customer&#39;s identity information is automatically sent to Bluetooth device  520 .  
     [0045] In step  720  of FIG. 7, Bluetooth device  520  forwards the customer identity information and information identifying item  103  to a retailer. Upon receiving the customer&#39;s identity information, this information and information identifying item  103  is automatically forwarded by Bluetooth device  520 . In one embodiment, Bluetooth device  520  is coupled with the computer system of retailer  101 . In another embodiment, this information can be transmitted to a Bluetooth enabled hub  540  located in the store. Bluetooth enabled hub  540  can be connected to a retailers computer network (e.g., system  200  of FIG. 2). This information is then used to create a record (e.g., record  420  of FIG.  4 ) in order to create the customized content of targeted message  440  that will be sent to the customer.  
     [0046] In summary, embodiments of the present invention allow retailers to customize the content of targeted advertisements they send to customers based upon the customer&#39;s in-store behavior. Because the customer identifies the items in which they are interested, the retailer can leverage this information to create advertisements which are tailored to the customer&#39;s unique preferences. This allows advertisers to see a greater return from their advertising budgets. For example, advertisements can be made smaller because they can be customized to convey information to the customer about products in which they have indicated some interest. This reduces the cost of printing and distributing advertising. Additionally, because the customer has already indicated some interest in the product being advertised, the advertisement in more likely to generate sales for the advertiser.  
     [0047] The preferred embodiment of the present invention, a method and system for customizing the content of targeted advertising based upon in-store behavior, is thus described. While the present invention has been described in particular embodiments, it should be appreciated that the present invention should not be construed as limited by such embodiments, but rather construed according to the following claims.