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| United States Patent | 5446919 |
| Link to this page | http://www.wikipatents.com/5446919.html |
| Inventor(s) | Wilkins; Jeff K. (P.O. Box 4223, Stanford, CA 94309) |
| Abstract | A communication system capable of targeting a demographically or
psychographically defined audience. A master database (20) is maintained,
containing demographic and psychographic information about each audience
member. This information is transmitted and stored in a channel
selection/decoder (100) unit associated with each audience member's
receiver. Multiple media messages are transmitted to each audience member.
Accompanying the transmission is a selection profile command, which
details the demographic/psychographic profile of audience members that are
to receive each media message. The channel selector/decoder (100) unit
associated with each member's receiver compares the selection profile with
the demographic/psychographic information about the audience member and
selects the appropriate media message for that audience member. |
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Title Information  |
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Drawing from US Patent 5446919 |
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Communication system and method with demographically or
psychographically defined audiences |
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| Publication Date |
August 29, 1995 |
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| Filing Date |
October 9, 1991 |
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| Parent Case |
This application is a continuation-in-part of my application Ser. No.
07/482,286, filed Feb. 20, 1990, now abandoned. |
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Title Information  |
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References  |
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| *references marked with an asterisk below are user-added references |
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References  |
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| Market Size |
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Estimate the gross annual revenues of the relevant market
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| Reasonable Royalty |
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What percentage of gross sales should the inventor or assignee be paid?
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Public's "Guesstimation" of Royalty Value
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| Market Size | N/A | [No votes] | | x | Market Share | N/A | [No votes] | | x | Reasonable Royalty | N/A | [No votes] |
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Market Review  |
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Technical Review  |
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Claims  |
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What is claimed is:
1. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network,
means at said head end transmitting system for storing
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information.
2. The system for selective transmission of the message to subscribers of
the cable television service of claim 1 in which said means for comparing
and enabling in which said means for comparing and enabling is configured
to enable that one of said plurality of cable decoders to provide the
message by changing a channel to which that of one of said plurality of
cable decoders is tuned.
3. The system of claim 2 in which said means for comparing and enabling is
further configured to return said cable decoder to the channel to which
that of one of said plurality of cable decoders was turned prior to
operation of said means for comparing and enabling at a conclusion of the
message.
4. The system of claim 3 in which said cable decoder is configured so that
a later command from either a viewer's channel selection or said means for
comparing and enabling overrides a previous channel selection.
5. The system of claim 1 additionally comprising means at said head end
transmitting system for providing alternative messages for the selective
transmission.
6. The system of claim 5 in which said means for providing alternative
messages is configured to provide the alternative messages on different
channels.
7. The system of claim 6 in which said means for comparing and enabling is
configured to provide the alternative messages on different channels
through an alternative channel map based on the demographic/phychographic
information.
8. The system for selective transmission of a message to subscribers of a
cable television service of claim 1 in which said plurality of cable
decoders each include a display and each of said plurality of cable
decoders is configured to provide the message to said display.
9. The system for selective transmission of the message to subscribers of
the cable television service of claim 6 in which said means for providing
alternative messages is configured so that said cable decoder for a
particular subscriber is repeatedly tuned to one of multiple different
channels arranged in a circular pattern until said cable decoder for said
particular subscriber.
10. A method for selective transmission of a message to subscribers of a
cable television service, the service including a cable network, a head
end transmitting system connected to the cable network, and a plurality of
cable decoders, one for each of the subscribers, connected to the cable
network, the method comprising:
storing at said head end transmitting system demographic/psychographic
information about the subscribers,
transmitting from said head end transmitting system the
demographic/psychographic information for each subscriber to the one of
the plurality of cable decoders for that subscriber, free of input by the
subscribers,
storing the demographic/psychographic information for each subscriber at
the one of the plurality of cable decodes for that subscriber,
transmitting from said head end transmitting system a
demographic/psychographic profile for desired recipients of the message,
transmitting the message,
comparing the demographic/psychographic profile with the
demographic/psychographic information stored at that one of the plurality
of cable decoders, and
enabling that one of the plurality of cable decoders to provide the message
to that one of the subscribers corresponding to that one of the plurality
of cable decoders when the transmitted demographic/psychographic profile
matches the stored demographic/psychographic information.
11. The method of claim 10 in which that one of the plurality of cable
decoders is enabled to provide the message by changing a channel to which
that one of the plurality of cable decoders is tuned.
12. The method of claim 11 in which the cable decoder is returned to the
channel to which that one of the plurality of cable decoders was tuned
prior to changing the channel.
13. The method of claim 12 in which a later command from a viewer's channel
selection or the comparing overrides a previous channel selection.
14. The method of claim 10 in which alternative messages are provided for
the selective transmission.
15. The method of claim 14 in which the alternative messages are provided
on different channels.
16. The method of claim 15 in which the alternative messages are provided
on different channels through an alternative channel map based on the
demographic/psychographic information.
17. The method of claim 10 in which the plurality of cable decoders each
include a display and each of the plurality of cable decoders provides the
message to the display.
18. The method of claim 15 in which said cable decoder for a particular
subscriber is repeatedly tuned to one of multiple different channels
arranged in a circular pattern until said cable decoder for said
particular subscriber is tuned to a channel that is transmitting a message
targeted for said particular subscriber.
19. A system for selective transmission of a message to subscribers of a
television service, comprising:
a network,
a head end transmitting system coupled to said network,
a plurality of decoders, one for each of the subscribers, coupled to said
network,
means at said head end transmitting system for storing
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of decoders for that subscriber, free of
input by the subscribers,
means at each one of said plurality of decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message,
means at each one of said plurality of decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of decoders and for
enabling that one of said plurality of decoders to provide the message to
that one of the subscribers corresponding to that one of said plurality of
decoders when the transmitted demographic/psychographic profile matches
the stored demographic/psychographic information.
20. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network,
means at said head end transmitting system for storing
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers, said means for storing and transmitting the
demographic/psychographic information being operated to transmit the
demographic/psychographic information as program tags,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting the
demographic/psychographic profile for desired recipients of the message
and for transmitting the message, said means for transmitting being
operated to transmit the demographic/psychographic profile as a program
tag with the message,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information.
21. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network, means at said head end transmitting system for
storing demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information, and
means at said head end transmitting system for providing alternative
messages for selective transmission and operated to provide the
alternative messages on different channels, said means for comparing and
enabling being operated to provide the alternative messages on different
channels through cascading barker channels.
22. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network,
means at said head end transmitting system for storing
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information,
means at said head end transmitting system for providing alternative
messages for selective transmission and operated to provide the
alternative messages on different channels, said means for comparing and
enabling being operated to provide the alternative messages on different
channels through overlapping pay- per-view events.
23. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network and to a
master database and a network video source, said master database including
means for storing a demographic/psychographic audience database comprising
audience demographic/psychographic information, free of input by the
subscriber, and means, connected to said means for storing said
demographic/psychographic audience database, for selectively transmitting
the demographic/psychographic information for the subscribers from said
audience database to said head end transmitting system, and said network
video source includes means for transmitting alternative messages for the
selective transmission to said head end transmitting system,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network,
means at said head end transmitting system for storing the
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information.
24. A method for selective transmission of a message to subscribers of a
cable television service, the service including a cable network, a head
end transmitting system connected to the cable network, and a plurality of
cable decoders, one for each of the subscribers, connected to the cable
network, the method comprising:
storing at said head end transmitting system demographic/psychographic
information about the subscribers,
transmitting from said head end transmitting system the
demographic/psychographic information for each subscriber to the one of
the plurality of cable decoders for that subscriber, free of input by the
subscribers, the demographic/psychographic information being transmitted
as a first program tag,
storing the demographic/psychographic information for each subscriber at
the one of the plurality of cable decoders for that subscriber,
transmitting from said head end transmitting system a
demographic/psychographic profile together with the message as a second
program tag for desired recipients of the message subsequently to
transmitting the demographic/psychographic information, comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of the plurality of cable decoders, and
enabling that one of the plurality of cable decoders to provide the message
to that one of the subscribers corresponding to that one of the plurality
of cable decoders when the transmitted demographic/psychographic profile
matches the stored demographic/psychographic information.
25. A method for selective transmission of a message to subscribers of a
cable television service, the service including a cable network, a head
end transmitting system connected to the cable network, and a plurality of
cable decoders, one for each of the subscribers, connected to the cable
network, the method comprising:
storing from said head end transmitting system demographic/psychographic
information about the subscribers,
transmitting from said head end transmitting system the
demographic/psychographic information for each subscriber to the one of
the plurality of cable decoders for that subscriber, free of input by the
subscribers,
storing the demographic/psychographic information for each subscriber at
the one of the plurality of cable decoders for that subscriber,
transmitting from said head end transmitting system a
demographic/psychographic profile for desired recipients of the message,
transmitting the message,
comparing the demographic/psychographic profile with the
demographic/psychographic information stored at that one of the plurality
of cable decoders, and
enabling that one of the plurality of cable decoders to provide the message
to that one of the subscribers corresponding to that one of the plurality
of cable decoders when the transmitted demographic/psychographic profile
matches the stored demographic/psychographic information, and
providing alternative messages for selective transmission, where the
alternative messages are provided on different channels through cascading
barker channels.
26. A method for selective transmission of a message to subscribers of a
cable television service, the service including a cable network, a head
end transmitting system connected to the cable network, and a plurality of
cable decoders, one for each of the subscribers, connected to the cable
network, the method comprising:
storing at said head end transmitting system demographic/psychographic
information about the subscribers,
transmitting from said head end transmitting system the
demographic/psychographic information for each subscriber to the one of
the plurality of cable decoders for that subscriber, free of input by the
subscribers,
storing the demographic/psychographic information for each subscriber at
the one of the plurality of cable decoders for that subscriber,
transmitting from said head end transmitting system a
demographic/psychographic profile for desired recipients of the message,
transmitting the message,
comparing the demographic/psychographic profile with the
demographic/psychographic information stored at that one of the plurality
of cable decoders, and
enabling that one of the plurality of cable decoders to provide the message
to that one of the subscribers corresponding to that one of the plurality
of cable decoders when the transmitted demographic/psychographic profile
matches the stored demographic/psychographic information, and
providing alternative messages for the selective transmission, where the
alternative messages are provided on different channels through
overlapping pay-per-view events.
27. A system for selective transmission of a message to subscribers of a
cable television service, comprising:
a cable network,
a head end transmitting system connected to said cable network and
operating under control of a system clock,
a plurality of cable decoders, one for each of the subscribers, connected
to said cable network,
means at said head end transmitting system for storing
demographic/psychographic information about the subscribers and
transmitting the demographic/psychographic information for each subscriber
to the one of said plurality of cable decoders for that subscriber, free
of input by the subscribers,
means at each one of said plurality of cable decoders for storing the
demographic/psychographic information for each subscriber,
means at said head end transmitting system for transmitting a
demographic/psychographic profile for desired recipients of the message
and for transmitting the message, said means for transmitting being
responsive to said system clock to define duration of pay-per-view events
and to define a shortened duration of the pay-per-view events by updating
said system clock after initiation of a pay-per-view event,
means at each one of said plurality of cable decoders for comparing the
demographic/psychographic profile with the demographic/psychographic
information stored at that one of said plurality of cable decoders and for
enabling that one of said plurality of cable decoders to provide the
message to that one of the subscribers corresponding to that one of said
plurality of cable decoders when the transmitted demographic/psychographic
profile matches the stored demographic/psychographic information, and
means at said head end transmitting system for providing alternative
messages for selective transmission and operated to provide the
alternative messages on different channels, said means for comparing and
enabling being operated to provide the alternative messages on different
channels through overlapping pay-per-view events.
28. The method of claim 26 in which the head end transmitting means
operates under control of a system clock, duration of the pay-per-view
events is defined with the system clock and a shortened duration of the
pay-per-view events is defined by updating the system clock after
initiation of a pay-per-view event. |
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Claims  |
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Description  |
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BACKGROUND OF THE INVENTION
1. Field of the Invention
This invention relates to communication systems, and in particular,
communications systems capable of targeting a demographically or
psychographically defined audience.
2. Description of the Prior Art
Although television has historically been a broadcast technology (meaning
programs and commercials are designed for `mass appeal` without
segmentation by demographic or psychographic factors), a number of
techniques have evolved for targeting select audiences.
Advertisers start with the profile of the target customer for their product
or service. Market research companies routinely audit television show
audiences (via phone survey, mail, etc.) to characterize the demographic
and psychographic profile of viewers. Advertisers use this information to
pick programs with large numbers of viewers most like the target customer.
Naturally, this information also helps the advertiser shape the content of
the advertisement so as to appeal to the tastes of the target audience.
Targeting advertising by television program has a fundamental problem,
however. Audiences are heterogeneous, making it impossible for advertisers
to get the appropriate message efficiently to only the target audience.
With conventional television, it is impossible to split the audience into
finer groups, targeting each with a different commercial message. This is
a universally useful capability, as will be shown in Objects and
Advantages.
With the advent of cable television systems, new methods were developed to
target programming, driven by the need to control viewing of pay-per-view
programs. The addressable converter was developed (see prior art, for
example U.S. Pat. Nos. 4,475,123, 4,625,235, 4,638,359, 4,716,410). These
addressable systems assign each household's set-top addressable converter
a unique address. In response to a viewer's order for a pay channel or
pay-per-view event, an address and authorization command is sent to that
viewer's converter. A disadvantage of using this approach for targeting
advertising is immediately obvious: pay-per-view addressability is not
transparent to the viewer who must first order the program and then tune
it in at the broadcast time.
In addition, this approach of transmitting a list of authorized addresses
is inefficient for targeting advertising by household based on
psychographic and demographic data. The viewers of each pay-per-view event
change in a way not predictable by knowledge of the household's
demographics and psychographics. Hence, a complete list of authorized
addresses must be transmitted. By contrast, targeted advertising will
often utilize the same demographic/psychographic parameters. Thus,
transmission requirements can be reduced by storing each household's
demographic and psychographic data at the set-top and only transmitting
the selection profiles defining the target audience.
The most elementary type of targeting involves the use of split cable
system as detailed in U.S. Pat. No. #3,366,731, issued Jan. 30, 1968 to
Edward Wallerstein for Television Distribution System Permitting Program
Substitution for Selected Viewers. A split cable system is constructed
with two cables originating from a single transmitting source. One
advertisement is inserted on one cable and another advertisement on the
other cable. The limitation of this approach is that it can only be
applied to split cable systems, and does not allow arbitrary selection of
target audiences.
A further refinement of television targeting technology is shown in U.S.
Pat. 3,639,686, issued Feb. 1, 1972 to Harold R. Walker and Ira Kamen for
Television Receiver Cut-In Device. This system uses an auxiliary
television signal which contains both a video channel and control
information. The auxiliary television signal is broadcast throughout a
broadcast area with a particular control signal identifying the class of
viewers to be reached by the auxiliary television signal. Each television
receiver has a special decoder to decode and interpret the control
signals. The decoder switches to the special signal when it receives a
particular address signal identifying the decoder as in the class to which
the signals are to be transmitted. The limitation of this approach is that
the information contained in the receivers is static-once the receivers
have been programmed with information and installed in a viewer's house it
cannot be updated. Thus, Walker's targeting cannot be varied at the will
of advertisers/market researchers.
Two approaches to the static nature of Walker's targeting have been
advanced in the prior art. U.S. Pat No. 4,602,279 Freeman, M. J. "Method
For Providing Targeted Profile Interactive CATV Displays" assignor to
ACTV, Inc. Port Washington, N.Y. details a system that relies on viewer
input of demographic data. The system utilizes the excess bandwidth of the
cable system to transmit multiple commercials. A selection profile (what
class of viewer) is transmitted from the head-end (in the vertical
blanking interval). However, the actual demographic data is acquired
interactively from the viewer (e.g. the tv displays questions like "Are
you a cat lover?, How old are you?, What car do you drive?" and the
set-top stores the answers). The answers are compared with the selection
profile to determine the proper channel selection. While innovative in
design, the system requires input from the user to form the demographic
database. This interactivity is likely to annoy users--and there is no
guarantee that viewers would respond. Further, advertisers could not be
guaranteed that their commercial was being viewed by a household watching
a particular channel. In addition, this is a capability that is not
present in the installed base of conventional addressable set-top
converters.
The other approach is to bypass the local storage of any demographic data,
and instead just transmit a list of receiver addresses belonging to a
certain class, followed by a control signal transmission (e.g. if class 1,
then switch to channel 10). U.S. Pat. No. 4,331,974 issued May 25, 1982 to
Ned W. Cogswell, Gerald J. Eskin and Andrew Wright, Jr. for Cable
Television With Controlled Signal Substitution takes this approach.
Three pieces of information are transmitted to the home: normal television
channel, the substitute channel used for transmitting the substitute
commercial, and the list of household addresses to respond to the
substitution. To overcome the burdens of real-time transmissions, the data
is split into two pieces and transmitted separately. Prior to the
commercial, an event number and the list of households to be effected by
each substitution is transmitted and stored. The households can be
considered as members of an `event set`. This step requires large amounts
of data to be transmitted. The specifics of a given substitution (event
number, normal television channel, the substitute channel used for
transmitting the substitute commercial) are transmitted immediately prior
to the commercial break, and processed in real-time at each household.
Thus, real-time targeting of commercials can occur. In addition, unlike
Freeman's invention, advertisers can control which households receive a
given commercial advertisement.
The system also includes a method for gathering demographic/psychographic
information-scanner purchase statistics collected from specially wired
stores in the viewing area.
This approach suffers from a number of limitations, however. First,
changing the selection profile (which households are selected) requires a
retransmission of the event set. This may not be possible in the change is
made close to when commercial broadcast occurs. Second, it is inefficient.
Cogswell's approach must transmit a list of household addresses for each
different selection profile utilized. Since most selection profiles will
be comprised of different `slices` of a fairly small set of
demographic/psychographic parameters (e.g. name, address, zip, age,
occupation, household income, . . . ), great redundancy in data
transmission exists in Cogswell's approach. Third, a powerful computer in
the head-end is needed to sort demographic/psychographic data and generate
the lists of households which will receive a given advertisement. Lastly,
Cogswell's approach relies to a large extent on information volunteered by
and collected directly from panelists. Problems with this approach
include: the logistical headache and expense of gathering information from
large numbers of viewers and invalid data (incomplete/incorrect
information provided by viewers). This is again a special system, not
compatible with the installed base of set-tops.
SUMMARY OF THE INVENTION
The present invention combines communications and computer technology to
download often used demographic/psychographic information about each
household from the cable head-end to the set-top converter. Once stored at
the set-top, this information is compared to the selection profile and
used to determine which channel to switch to in real-time.
Demographic/psychographic data changes relatively infrequently--and is
easily updated to reflect new behaviors or supplemented through the
addition of new parameters.
This approach removes the limitations of the prior art. First, the
selection profile can be dynamically varied from the head-end up until
transmission time (immediately prior to commercial broadcast). Second,
transmission requirements are reduced. Instead of a complete list of
authorized addresses being transmitted, only a selection profile is
typically transmitted. This reduces transmission since targeted
advertising will often utilize the same demographic/psychographic
parameters. Thus, transmission requirements can be reduced by storing each
household's demographic and psychographic data at the set-top and only
transmitting the selection profiles. Thirdly, the decision of which houses
are to be included in a selection profile is downloaded to and processed
by each household's receiver. Thus, head-end computer requirements are
minimized, instead utilizing the processing power already resident in each
microprocessor-based household receiver. Fourthly, a well-defined audience
can be guaranteed to advertisers. Lastly, no infrastructure problem exists
with creating the segmentation information--it already exists. Among the
sources: more than 15,000 mailing lists already utilized in direct mail
and magazine advertising.
Objects and Advantages
Media buyers have long desired improved addressability (targeting a desired
audience with minimal waste) and accountability (measuring the response
with actual purchasing behavior so as to allow optimization of ads) for
their advertisements.
This capability already exists in direct mail and even magazine publishing.
For example, print technology now allows the content of magazine
advertisements to be customized on a subscriber-by-subscriber basis, using
demographic/psychographic information compiled on the reader. Similarly,
direct mail marketeers can choose from more than 15,000 mailing lists to
target audiences. These mailing lists are produced by professional data
gathering/manufacturing companies such as Dun and Bradstreet, and are
compiled from prior mail-order purchase records, or magazine circulation
data. Tracking sales resulting from direct response marketing ads improves
accountability.
Mysteriously, while magazine publishers and direct mail providers are
making great strides in improving the effectiveness of their medium,
television advertising has advanced little if at all.
The major shortcomings of tv advertising: 1) television advertising is not
accountable-advertisers have little idea whether their advertising is
effective 2) television advertising is not addressable (tv is a
`broadcast` technology-all viewers of a channel get the same programming
regardless of how good a `prospect` they are). Both shortcomings must be
corrected if advertisers are to avert wasting most of the nearly $25
billion spent on US television advertising annually.
ADVANTAGES OF ADDRESSABILITY
Alvin Toffler, author of The Third Wave concluded, "The mass market has
split into ever-multiplying, ever-changing sets of mini-markets that
demand a continually expanding range of options, models, types, sizes,
colors, and customizations."
John Naisbitt in his book Megatrends echoes Toffler's views adding
"Advertisers are forced to direct products to perhaps a million clusters
of people who are themselves far more individualistic and have a wide
range of choices in today's world. The multiple-option society is a new
ballgame, and advertisers know that they must win consumers market by
market . . . "
The advantages of addressable television advertising extend to
broadcasters, advertisers, video distributors, and viewers:
Advertisers
The benefits of addressability extend to virtually any advertiser. For
example:
Manufacturers of Mass-Market Items: These marketeers could target the
message a given household receives based on brand usage. For example,
consumer goods companies like Procter and Gamble, Colgate,etc. could
segment viewers into loyal brand users, competitive brand users and
non-brand users--directing a different advertising message to each. Until
the present invention, this was impossible to perform with television
advertising.
Manufacturers of Specialty Goods/Services: Many businesses produce
goods/services targeted at too small a market for conventional tv
broadcast advertising to be cost-effective. Examples might include
semiconductor companies that wish to direct advertising to computer design
engineers (it would also be possible to purchase blocks of time to run a
tutorial on new chips for a fraction of the cost of teaching nationwide
seminars). A manufacturer of personal computers could target computer
magazine subscribers, corporate MIS employees, or others with a
predisposition to the product. Firms that specialize in providing credit
cards to those with poor credit histories might only send their ads to
those who recently declared bankruptcy and skip well-to-do viewers. A
manufacturer of arthritis drugs might target only those over 65 and users
of prescription pain-killing medications. By making previously indivisible
advertising time divisible, addressability allows advertisers of specialty
goods to target only the desired audience, the remainder of the audience
can be sold to another advertiser. Until the present invention, this has
been impossible to accomplish.
Local Small Businesses: Addressability opens television advertising to
small businesses. For example, a dry cleaner probably can't currently use
television advertising cost-effectively. Most of his business comes from
the neighborhood around his store, and much of the large audience
delivered by a commercial on a local television station is wasted. But if
the dry cleaner could select only those users who live around | | |