Advertising Effectiveness Measurement via Third-Party Purchase Data
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Solution Overview
Problem
The challenge lies in effectively measuring the sales value created by internet advertising, as the linkage between internet advertisement exposure and offline purchase behavior remains elusive, making it difficult for advertisers to justify significant investment in digital media.
Innovation Solution
A method involving defining a test group exposed to a communication associated with a promoted entity, receiving purchase information, and calculating multipliers based on purchase amounts to determine the effectiveness of advertising, which includes sending a signal indicative of a combined multiplier to assess the advertising effectiveness.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If internet advertising is invested in, then advertising reach and frequency increase, but the ability to link advertisement exposure with offline purchase behavior remains elusive
Solution Approach 1:
The patent introduces a third-party data provider as an intermediary that supplies offline purchase data to the advertising system. This mediator enables the linkage between online advertising exposure and offline purchase behavior without requiring direct integration with all retail systems, thus solving the measurement precision problem while maintaining advertising effectiveness.
Solution Approach 2:
The patent replaces traditional mechanical tracking methods (such as direct online transaction tracking) with a data-driven approach using purchase information from third-party sources. This substitution allows for more accurate measurement of advertising impact on offline purchases by utilizing alternative data mechanisms that capture real-world purchasing behavior.
2Reliability
If traditional television advertising is used, then brand awareness and loyalty increase, but the ability to tie advertising to specific purchases remains difficult
Solution Approach 1:
The patent creates a universal measurement framework that works across multiple advertising channels and retail environments. By using a standardized approach to collect and analyze purchase information from various sources, the system can measure advertising effectiveness whether the ad is viewed online or offline, thus retaining the reliability of brand awareness measurement while recovering the lost connection to purchase data.
Solution Approach 2:
The patent implements feedback mechanisms by continuously collecting purchase information and comparing it against advertising exposure data. This feedback loop enables the system to measure the impact of advertising on actual purchases, providing advertisers with actionable insights that connect brand awareness building to concrete sales outcomes.
Data Source
AI summary
In some embodiments, a method defines a test group from a population of consumers that have been exposed to a communication associated with a promoted entity. The test group includes a (1) retailer profile, and (2) a first purchase amount associated with the promoted entity. The method also includes receiving purchase information associated with a third party. The purchase information includes (1) a second purchase amount associated with the promoted entity, and (2) a third purchase amount associated with the promoted entity. The method further includes defining a first multiplier based on a relationship between the first purchase amount and the second purchase amount, and defining a second multiplier based on a relationship between the first purchase amount and the third purchase amount. The method additionally includes sending a signal indicative of a combined multiplier based on (1) the first multiplier, and (2) the second multiplier.