WO2001037183A1 - Method and apparatus for measuring effectiveness of on-line advertising - Google Patents
Method and apparatus for measuring effectiveness of on-line advertising Download PDFInfo
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- WO2001037183A1 WO2001037183A1 PCT/US2000/031893 US0031893W WO0137183A1 WO 2001037183 A1 WO2001037183 A1 WO 2001037183A1 US 0031893 W US0031893 W US 0031893W WO 0137183 A1 WO0137183 A1 WO 0137183A1
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- consumer
- advertisement
- activity
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q30/00—Commerce
- G06Q30/02—Marketing; Price estimation or determination; Fundraising
Definitions
- This invention relates generally to advertising, and more particularly, to a system foi measuring effectiveness of advertising on a data network
- a user When using the Internet, a user generally accesses the Internet through a web browser operating on a computer or other Internet interface device
- the web browser generates the hypertext transfer protocol (HTTP) necessary to communicate with a requested website on the Internet
- HTTP hypertext transfer protocol
- a user can access the web site of any company on the Internet by inputting an Internet domain name of the desired company
- DNS Domain Name Service
- the web browser sends the necessary hypertext transfer protocol messages to the user's service provider which in turn. looks up the domain name using a Domain Name Service (DNS) server, or similar capability
- DNS Domain Name Service
- the web pages or information maintained by a Web server having the addressed domain name are transmitted back to the user's computer for display Such information frequently includes banner advertisements about new products, services, etc
- banner advertisements for one company's products or services might be inserted into the web pages of other company's or content provider's
- the user has the capability to simply read the advertisement or to click on or through the advertising banner to access the web page associated with advertisement, thereby obtaining more information about the advertised product or service
- IDs referred to as "cookies”
- cookies can uniquely identify an individual user and/or associated information about the user This information has been employed in several methods to direct to a particular user one or more advertising banners that are related to that user's preferences, thereby increasing the probability that the user would purchase one of the advertised products or services
- the present invention includes a system for determining the effectiveness of on-line advertising
- the system matches information from a network access provider and a merchant to determine on-line advertising effectiveness
- the network access provider provides information pertaining to the network activity of selected purchasers
- the merchant pro ⁇ ides information pertaining to purchase activity of selected purchasers By matching the netw ork activity and purchase information of selected purchasers it is possible to determine a measure of advertising effectiveness as defined by a ratio of actual purchases to advertisement selection
- the combination of the data may be performed at a merchant system or may optionally be performed by an agent of the merchant that is given access to the merchant's purchase transaction records
- a method for measu ⁇ ng the effectiveness of a merchant's advertisement presented on a data network is provided The method comprises steps of identifying a consumer that accesses the data network, presenting the advertisement to the consumer via the data network, recording the consumer's network activity in an activity database, wherein the consumer's network activity in response to the advertisement is recorded m the activity database, and matching the activity
- apparatus for measu ⁇ ng advertising effectiveness of a merchant's advertisement presented on a data network
- the apparatus composes a transaction file receiver for receiving purchase transaction records that describe transactions between the merchant and a consumer, an activity file receiver for receiv ing an activity file describing the network activity of the consumer and a matching processor coupled to the transaction file receiver and the activity file receiver for matching transactions of the consumer with network activity of the consumer to determine an effectiveness parameter of the advertisement
- FIG 1 shows a flowchart of a process for measuring the effectiveness of online advertising in accordance with the present invention
- FIG 2 shows a poor art credit card transaction system for processing a credit card transaction between a consumer and a merchant
- FIGS 3a-e show an exemplary transaction database
- FIG 4 shows a diagram of a data network access system that provides a way for a consumer to receive on-line advertisements from merchants or other advertisers
- FIGS 5a-c show an exemplary advertisement/activity database
- FIG 6 shows one embodiment of a system for measu ⁇ ng the effectiveness of on-line advertising in accordance with the present invention
- FIG 7 shows a method for measu ⁇ ng the effectiveness of on-line advertising m accordance with the present invention, DESCRIPTION OF THE SPECIFIC EMBODIMENTS
- the present invention includes a system for determining the effectiveness of on-line advertising.
- the system operates by matching consumer on-line activity with merchant purchase records.
- a measure of advertising effectiveness results from the matching operation, since it is possible to determine if consumers make a purchase after viewing a specific on-line advertisement.
- FIG. 1 show a flowchart 200 for measu ⁇ ng the effectiveness of on-line advertising in accordance with the present invention
- a consumer accesses a data network, for example the Internet
- the consumer provides identification to a network service provider
- the identification identifies the consumer to the network service provider
- the consumer views an online advertisement
- the advertisement is in the form of a banner ad that appears on the consumer ' s display screen
- a network web page is displayed on the consumer's display screen and the banner ad is supe ⁇ mposed over a portion of the web page.
- the network service provider records that the consumer clicked on the advertisement For example, the date and time along with the consumer ID and an advertisement identifier are recorded by the ISP.
- the consumer visits a store in the merchant's sales channels, for example, an Internet store, catalog store, call m center or any other merchant location
- POS point of sale
- the consumer makes a purchase of the advertised goods or services and their payment record is captured at the merchant's point of sale (POS) device (i.e , cash register, credit card terminal, or catalog Internet processing center)
- POS point of sale
- two electronic files are generated on a pe ⁇ odic basis
- the first file is a report generated by the network access provider that provides information about consumers that have viewed and clicked on selected network advertisements.
- the second file represents all payment transactions recorded at the point of sale where the consumer uses a credit card, debit card, frequent shopper card, or check (if the consumer registers a bank account number with the transaction reporting system). The two files are ultimately matched together.
- the network access provider provides a consumer ad/activity file that provides information relating to advertisements viewed and clicked on by consumers.
- the ad/activity file may be generated daily, weekly, monthly or at any other convenient interval.
- a merchant or an agent of the merchant generates a transaction file.
- the transaction file shows information about consumer transactions and purchase activity.
- the transaction file may be generated daily, weekly, monthly or at any other convenient interval.
- the ad/activity file and the transaction file are matched. For example, a consumer may have clicked on an advertisement and proceeded to a merchant store location and thereafter purchased goods.
- the merchant store may be an on-line store, catalog store, or other merchant location where the merchant offers goods or services for sale.
- the ad/activity file shows when the consumer clicked on the advertisement and the transaction file shows when the consumer made a particular purchase.
- an advertising effectiveness report is generated that provides information showing statistics describing the effectiveness of an on-line advertisement. For example, the number of consumers that viewed the advertisement can be compared to the number of consumers that purchased a product after viewing the advertisement.
- FIG. 2 shows a diagram of a typical credit card transaction between a consumer 102 and a merchant 104 and includes participating banks and the interaction of data and payment flow.
- the present invention is suitable for use with any type of transaction processing system that provides transaction information about consumer purchases.
- one transaction processing system is disclosed in U.S. Patent Application No. 09/637422 entitled TRANSACTION BASED AWARD PROGRAM filed on August 11, 2000, and assigned to the assignee of the present application.
- transaction information may be de ⁇ ved from any transaction processing system, with whom the merchant 104 maintains va ⁇ ous accounts
- An acquiring bank 108 acquires and processes payment card transaction data on behalf of the merchant 104
- the acquiring bank 108 sends or receives funds electronically with the merchant bank 106 as well as with card associations 1 18, such as Visa and MasterCard and/or companies processing p ⁇ vate label cards
- the card associations 118 interact with an issuing bank 110 that issued the credit card, debit card or the like to the consumer 102
- a POS processing institution 1 12 (clea ⁇ nghouse) initially receives all of the electronic card transactions for merchants that are part of a particular system or who have signed onto a particular system, with the POS coordinating and controlling records of payments between consumers and the merchants
- the acqui ⁇ ng bank 108 has available to it, as part of its accumulated data records, each electronic payment transaction, including the account of a particular consumer, the account of a particular merchant, and the amount of the transaction m the currency denomination of the merchant's choosing
- the acqui ⁇ ng bank receives a consolidated file from the POS clea ⁇ nghouse 1 12 on a daily basis that includes all transactions performed at POS terminals (for example POS terminal 1 16) located at associated merchants
- a transaction reporting system 1 14 receives a duplicate file of transaction information from the POS clea ⁇ nghouse 1 12 and provides specialized reporting of va ⁇ ous information to the acqumng bank and/or merchants For example, the transaction reporting system supplies ⁇ sk management reporting to help
- the consumer 102 makes a purchase (for example, a $100 purchase) at the merchant's 104 location by ente ⁇ ng credit card information at the POS terminal 116
- a request for a $100 autho ⁇ zation is sent from the POS 112 to the issuing bank 110 4.
- An approval is provided by the issuing bank 110 to the POS 112.
- the POS 112 transfers a $100 payment record to the acquiring bank 108.
- the acquiring bank 108 deducts its processing fees and transfers a $97 credit to the merchant's designated account at the merchant bank 106.
- the acquiring bank 108 advises the card association about the $100 transaction.
- the acquiring bank receives reimbursement of $98 for the money already deposited to the merchant's bank account.
- the card association sends an advice to the issuing bank for $100 that the consumer has incurred a debt against their credit card account (as well as $2 from the acquiring bank).
- the issuing bank sends $100 to the card association to reimburse it for the funds transfe ⁇ ed to the acquiring bank.
- the transaction reporting system 1 14 is ancillary to the above process and is subscribed to by acquiring banks for risk management reporting and/or merchant reporting services. These services are an adjunct to the acquiring bank's business management practices.
- the term "electronic card transaction” will be understood to include any transaction which generates an electronic record of the transaction, including credit cards, debit cards, check truncation transactions, electronic credit cards, transactions on the Internet, or via telephone, etc.
- the transaction reporting system it is possible for the transaction reporting system to compile consumer transaction records into a transaction file that can be used in one or more embodiments of the present invention.
- FIGS. 3a-e show a database structure for a portion of a transaction file generated from a transaction processing system that includes information about consumer purchases made using various electronic card transactions. For example, payments made using credit cards, debit cards, and checks are some of the electronic card transactions that may be tracked and recorded in the transaction file.
- the transaction file contains information, such at the date and time of the transaction, identification for the merchant and the consumer, type of payment mechanism used, amount of payment, and so forth. Thus, the transaction file gives a complete accounting of electronic card transactions between consumers and merchants regardless of whether the transaction took place via the Internet, telephone or at a physical store location
- FIG 4 shows one embodiment of a measurement system 400 for measu ⁇ ng on-line advertising effectiveness in accordance with the present invention.
- a consumer 402 uses a network access device 404 to communicate with a network access provider 406.
- the network access device 404 may be any type of device capable of network access, such as a desktop computer, notebook, laptop, or other network appliance, cell phone, PDA or other personal communication device or portable computer Connections from the consumer's network access device to the network access provider can be provided by any telecommunication technique including telephone lines, cables, fiber optics or wireless technology
- the network access pro ider 406 may be an Internet Service Provider (ISP) that routes information between the consumer's network access device 404 and other entities coupled to a data network 412.
- ISP Internet Service Provider
- One of the entities coupled to the data network 412 is a merchant 408 and another entity coupled to the data network is an advertiser 410
- the merchant 408 and the advertiser 410 provide advertisements for distribution on the data network.
- Network portal 414 is another entity coupled to the data network 412.
- the network portal 414 provides several services to network users, such as providing a way for consumers to easily link to other network entities or services Thus, it is possible for the consumer 402 to access the data network 412 via a coupling between the network access device 404 and the network access provider 406
- the consumer's network access device may be redirected to the address of the portal 414, and as a result, a web page provided by the portal is displayed to the consumer This initial web page is sometimes referred to as a home page.
- the consumer may select as a home page a web page provided by some other network entity, such as the network access provider 406.
- banner advertisements provided by the merchant 408 or the advertiser 410 are also displayed.
- the banner advertisements advertise goods or services offered for sale by merchants.
- the merchant 408 forms an agreement with the network access provider 406 to supe ⁇ mpose the merchant's banner advertisement over the web page being viewed by the consumer.
- the portal 414 agrees to provide a space or area on its web page that can be used by the advertiser 410 to display va ⁇ ous advertisements.
- the advertiser offers this space to va ⁇ ous merchants so that the portal's web page has a dedicated space to display a variety of advertisements received from the advertiser 410.
- the display of on-line advertisements to the consumer may occur in several ways.
- the consumer may click on the advertisement to be redirected to another web page where more information is available or where the consumer may purchase the advertised goods or services.
- a web address associated with the advertisement is used to redirect the consumer's network access device to that web address.
- a web page from that address is displayed on the consumer's network access device 404.
- the network access provider 406 tracks the redirection so that the network access provider records the activity of the consumer with respect to which advertisements the consumer clicks on, the time it was clicked on, the address the consumer was redirected to, and so forth.
- the network access provider creates an advertisement/activity file or database that contains information about the consumer's network activity with regards to advertisements viewed and clicked on.
- the network access provider 406 issues files at regular intervals that contain information from the advertisement/activity database. These ad/activity files are used in one or more embodiments of the present invention.
- After clicking on an advertisement of interest the consumer is redirected to a network address where the consumer may learn more about the advertised product or make a purchase. Assuming the consumers makes a purchase using a credit card, the electronic card transaction between the consumer and the merchant occurs as described with reference to FIG. 2 above, and as a result, the transaction becomes part of a transaction file prepared by a transaction reporting system 416 that is coupled to the data network 412.
- the transaction file contains information about the consumer, merchant, time and date of purchase, and the amount of the purchase.
- the network access provider 406 and the transaction reporting system communicate with an advertising effectiveness system 418 that is also coupled to the data network 412.
- the network access provider 406 sends the advertisement/activity reports to the advertising effectiveness system 418 and the transaction reporting system 416 sends the transaction file to the advertising effectiveness system 416.
- the effectiveness system 416 receives these reports and uses the information about the consumer's network activity and purchases to determine advertising effectiveness by matching the information and identifying parameters about the number or types of advertisements viewed by the consumer and the number and types of purchases made
- the provider of ad/activity file that describes the consumer's click through activity can be any network search engine, network portal, or even the merchant, since the merchant can provide activity about the consumer that occurs at the merchant site
- the consumer provides a consumer network identifier that is associated with the consumer network activity in the ad/activity file The consumer may do this to earn award points or have access to special services provided by the ISP
- the consumer also provides a consumer purchase identifier that is associated with consumer transactions with a merchant
- the advertising effectiveness system matches the consumer network identifier with the consumer purchase identifier to determine a measure of advertising effectiveness For example, a selected consumer's network activity can be matched with the selected consumer's purchase activity
- a measure of advertising effectiveness results by determining whether the consumer clicked on a banner advertisement prior to purchasing the advertised goods or services For example, the consumer clicks on a banner ad and is redirected to a web address associated with the banner ad The redirection is tracked in the ad/activity file and later, the effectiveness system uses this information to determine if the consumer purchased specific goods after clicking on a particular advertisement
- the consumer network identifier and the consumer purchase identifier are associated with each other or the two identifiers are the same This provides the measurement system with the most information to produce the most accurate effectiveness measurements
- FIGS 5a-c show a database structure for a portion of an advertisement/activity file that includes information about a consumer's network activity with regards to on-line advertising
- the advertisement/activity file includes information relating to the time and date of advertisement display, consumer identification, type of advertisement displayed, address (Universal Resource Locator (URL)) associated with the advertisement, time and date the consumer clicked the advertisement, and so forth
- URL Universal Resource Locator
- the advertisement/activity file includes all the information necessary to identify a consumer and to determine advertisements viewed by the consumer, whether the consumer clicked on the ad, and where the consumer was redirected to after clicking the ad
- FIG 6 shows one embodiment of the advertising effectiveness system 418 constructed in accordance with the present invention
- the effectiveness system 418 may be coupled to a data network, such as network 412, or may be a stand alone independent system It is also possible that the effectiveness system 418
- a transaction file receiver 604 receives (via path 602) the transaction file generated by the transaction reporting system
- An ad/activity file receiver 606 receiv es (via path 608) the ad/ activity file generated by the network access provider A.
- matching processor 610 performs matching functions to derive various information or statistics from the received files For example, the number of times an advertisement has been displayed to a consumer may be determined The number of purchases of a particular product may be determined Any types of ratios may also be determined, for example, the ratio of the number of advertisements clicked on to the number purchases made Thus, all types of advertising parameters and statistics can be de ⁇ ved by the matching processor 610 Time intervals are also considered m the matching process For example, a merchant may want to know how many times an advertisement is clicked on over a particular time interval The matching processor 610 can determine this
- a memory 612 provides a way to store raw data or processed results
- An effectiveness report generator 614 generates files of the processed information These files can be transmitted to merchants or advertisers via path 616 Therefore, it is possible that advertising effectiveness can be determined automatically and updated regular intervals depending on the frequency of the incoming transaction file and advertisement/activity file
- the information can be used by merchants or advertisers to allocate advertising resources to advertisements that prove to be effective, or to terminate advertisements that are shown to be ineffective
- FIG 7 shows a method 700 for measu ⁇ ng the effectiveness of on-line advertising in accordance with the present invention
- the method 700 provide a determination of advertising effectiveness by matching consumer on-line activity with consumer purchase activity
- a consumer accesses a data network (i.e., the Internet) via a computer terminal or other network access device
- a network access server such as an Internet Service Provider (ISP)
- ISP Internet Service Provider
- a test is performed by the ISP to determine if the consumer provided a valid consumer identifier (ID) when he/she logged on.
- the test may ve ⁇ fy a consumer password or cookie stored on the consumer's computer terminal.
- the method proceeds to block 706 where the consumer is assigned a status of anonymous consumer By assigning anonymous status to the consumer, it is still possible to track advertisements viewed and clicked on by the consumer, however, it may not be possible to associate purchase transaction information with anonymous consumers, so one or more advertising effectiveness measurements may not be possible However, tracking anonymous consumers does provide additional advertising statistics or parameters that are useful If the consumer's ID is valid, the method proceeds to block 708 At block 708, the ISP records the consumer's ID in a local database and then connects the consumer to the Internet to enable the consumer to view a selected home page. If the consumer has been assigned anonymous status, that will also be recorded in the local database.
- the selected home page may be any page associated with an Internet portal organization selected by the consumer
- the consumer's access point to the Internet may be through a portal operated by AOL or YAHOO!, for example, and the home page may be a page associated with the selected portal
- the portal's web page displays an advertisement to the consumer
- the advertisement may take the form of a banner advertisement, a pop-up window advertisement, or other advertisement display suitable for use with a web page
- the consumer views the displayed advertisement.
- the consumer may click on the advertisement if the consumer wishes to learn more about the advertised product or service
- the consumer uses a pointing device, such as a mouse connected to his/her computer to point to the displayed advertisement and clicks a button on the mouse to indicated selection of the advertisement
- a link associated with the displayed advertisement operates to direct the consumer to a web page operated by an advertiser or merchant, where the consumer learns more about the advertised product or service, or makes a purchase.
- a click through means that the consumer clicked on the displayed advertisement and was redirected, via the associated link, to the advertiser's web page. If the consumer did not click on the advertisement, the method proceeds to block 716. If the user did click on the advertisement the method proceeds to block 714.
- the ISP records the consumer's identification information, typically in the form of a "cookie", in a daily ad/activity file.
- the primary Internet identification method is a "cookie”.
- some web sites require users to enter a password as identification, and then use this password to associate the consumer with clicked-through advertisements.
- the method 700 operates to record the electronic identification provided by the consumer and information about the advertisement the consumer clicked on.
- the ad/activity file produced by the ISP contains the daily ad consumer ID activity.
- the activity report contains information about consumers, advertisements viewed by the consumers, and advertisements clicked on by the consumers.
- the activity report could be generated at any convenient time interval. It is also possible to include consumers having anonymous status, so that their activity is tracked as well.
- a transaction reporting system receives electronic card transactions pertaining to transactions between consumers and merchants.
- the transaction reporting system may be a merchant system, an independent system that acts as an agent of the merchant.
- the transaction reporting system prepares a transaction file of daily purchase that includes information about purchases from the merchant made by consumers.
- the transaction file could be generated at any convenient time interval.
- the ad/activity file provided by the ISP and the transaction file provided by the transaction reporting system are matched. For example, consumers that purchased goods from the merchant are matched with consumers that visited the merchant site via clicking through a banner advertisement.
- the matching process provides a way to determine the effectiveness of the on-line advertising.
- advertising effectiveness files are produced that contain the result of the matching process.
- the resulting files are organized by time intervals.
- the matching process occurs over any specified time period.
- the time period can be any length of time established by the merchant that extends from the time that a particular advertisement is displayed for the first time on a web page viewable by a consumer.
- the time period can be one day, several days, one week, one month, two or three months, etc.
- Any matches that occur within the set time period are regarded as qualified purchases (with respect to ad effectiveness) insofar as the match indicates that a particular individual viewed an ad displayed on a web page, clicked through the ad to the advertiser's web site, and within the established time period, actually made a purchase from the advertiser by any means, including from a retail outlet of the advertiser, or by catalog, mail-order, electronic order through the Internet, etc.
- the matching process produces a variety of reports such as a report providing advertisers with the total number of matches and/or the total dollar purchase amount of such matches, so that a verification of the effectiveness of a particular ad run on the data network can be determined.
- the ISP or portal may also employ the number of matches as a measurement of the cost of the advertisement since advertisements having higher numbers of matches are more valuable to an advertiser and could command a higher advertising rate.
- the matches can also be run against other demographic information provided by the consumer to lead to more sophisticated advertising.
- an optional determination can be made to determine if the user clicked directly onto an ad shown on the company's web page. For example, suppose the consumer accesses the network and goes directly to the address of the merchant's web site. Suppose further that a merchant web page is displayed to the consumer that contains merchant information and advertisements for merchant goods or services.
- the system for measuring advertising effectiveness included in the present invention can be employed to determine the effectiveness of advertisement placed directly on the merchant's web page. This occurs when the merchant provides the advertising effectiveness system information about consumer activity at the merchant web site. This information can be used in conjunction with the ad/activity file provided by the ISP.
- the present method may also be employed without major modification to all accesses to an advertiser's web site, whether through a direct address access from a user or through a link from another web page.
- these acts require a positive action on the part of the user, and assuming that the required "cookie" of personal information is available and able to be transferred to the ad activity database file, all purchases by the user from the owner of the web site within the set time period can also be o tracked as described above.
- the present invention includes a system for measuring the effectiveness of online advertising.
- the system provides information that can be used by a merchant to measure the effectiveness of advertising dollars, and as a result, re-deploy money spent on inefficient advertising to more efficient advertising channels.
Abstract
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Priority Applications (3)
Application Number | Priority Date | Filing Date | Title |
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EP00982174A EP1240611A1 (en) | 1999-11-19 | 2000-11-20 | Method and apparatus for measuring effectiveness of on-line advertising |
CA002396332A CA2396332A1 (en) | 1999-11-19 | 2000-11-20 | Method and apparatus for measuring effectiveness of on-line advertising |
AU19239/01A AU774972B2 (en) | 1999-11-19 | 2000-11-20 | Method and apparatus for measuring effectiveness of on-line advertising |
Applications Claiming Priority (2)
Application Number | Priority Date | Filing Date | Title |
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US16645199P | 1999-11-19 | 1999-11-19 | |
US60/166,451 | 1999-11-19 |
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WO2001037183A1 true WO2001037183A1 (en) | 2001-05-25 |
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PCT/US2000/031893 WO2001037183A1 (en) | 1999-11-19 | 2000-11-20 | Method and apparatus for measuring effectiveness of on-line advertising |
Country Status (4)
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EP (1) | EP1240611A1 (en) |
AU (1) | AU774972B2 (en) |
CA (1) | CA2396332A1 (en) |
WO (1) | WO2001037183A1 (en) |
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EP1240611A1 (en) | 2002-09-18 |
AU1923901A (en) | 2001-05-30 |
CA2396332A1 (en) | 2001-05-25 |
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