Targeted In-Store Promotion System Using Consumer Proximity
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Solution Overview
Problem
Retailers face low redemption rates and difficulty in correlating return on investment for promotional campaigns, as in-store ads are typically generic and not targeted to specific consumers, while existing location-based advertising methods like geo-fencing are limited in effectively engaging consumers near purchase decisions.
Innovation Solution
A system that tracks consumers' locations within a store using wireless access points and generates targeted promotions based on user profiles, determining the viewable area of digital displays and selecting promotions that match retailer goals by analyzing consumer proximity, motion, and market segments, ensuring personalized advertising to consumers within the viewable area.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If generic in-store ads are used, then device complexity is reduced and ease of operation is improved, but advertising effectiveness and redemption rates deteriorate
Solution Approach 1:
The patent applies local quality by transitioning from generic store-wide advertisements to location-specific, consumer-specific promotions. The system determines which consumers are within the viewable area of specific displays and shows tailored promotions to each consumer based on their location, profile, and real-time behavior, making each display location serve a specialized function rather than a generic one.
Solution Approach 2:
The system performs preliminary action by pre-generating promotion candidates and pre-determining consumer profiles before the actual advertising display. The system determines the group of consumers within viewable areas in advance, generates appropriate promotions based on their profiles, and prepares the targeted advertising content before it is displayed to consumers.
2Reliability
If targeted promotion campaigns are implemented, then advertising effectiveness is improved, but device complexity and implementation difficulty increase
Solution Approach 1:
The patent applies universality by making the existing digital display system perform multiple functions: it continues to display generic promotions while simultaneously implementing targeted advertising based on consumer location and profile. The system integrates with existing store infrastructure (digital displays, consumer profiles) rather than requiring entirely new specialized equipment, thus reducing complexity.
Solution Approach 2:
The system uses an intermediary approach by introducing a software layer that sits between the existing display system and the consumers. This intermediary component processes consumer location data, matches consumers with appropriate promotions, and controls display content without requiring fundamental changes to the physical display infrastructure.
3Measurement precision
If consumer location tracking is implemented, then measurement precision of consumer position is improved, but loss of consumer privacy increases
Solution Approach 1:
The patent applies local quality by limiting data collection and processing to only what is necessary for the immediate advertising context. The system determines consumer location specifically for the purpose of matching with viewable display areas and shows promotions only to consumers currently present in the store, rather than collecting and storing comprehensive consumer location histories.
Solution Approach 2:
The system applies partial action by implementing location tracking only to the extent necessary for targeted advertising - determining whether consumers are within viewable areas of displays. The system does not track consumers beyond what is needed for promotion delivery, and does not retain detailed location data longer than necessary for the advertising campaign.
Data Source
AI summary
A system generates a targeted promotion for a group of consumers in a store. The system determines the group of consumers or an audience that are within a viewable area of a display during at least a portion of a time period. The system then generates a profile for each of the consumers and, based at least on the profiles and a goal of the store, determines the targeted promotion from multiple potential promotions. The system then displays the determined promotion on the display during the time period.