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Description  |
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FIELD OF THE INVENTION
The present invention relates in general terms to a data processing system
for integrated management of commerce as transacted on a plurality of
interconnected computers. More specifically, the present invention relates
to a referral tracking and control system for promoting goods and services
on a wide area, public/private access network, such as the Internet.
BACKGROUND OF THE INVENTION
In the last four years, there has been an explosion of interest in the
transaction of business by interconnected computers linked together in
formal networks. The greatest interest is directed to the largest network
today, known as the Internet. The Internet is in fact a compilation of
smaller linked networks all providing essentially free public access to a
wealth of information, stored at individual sites managed by numerous
participants on the Internet. The Internet has already changed in dramatic
fashion many of the ways people communicate, collect, and share
information. More will certainly come, as a greater percentage of our
population become comfortable with the machinations required to access and
communicate with others on the Internet.
Of particular interest is the World Wide Web, or what is now more often
abbreviated as the "web". The web is a collection of interconnected
computers forming an important subset of the Internet. Due to its graphic
capabilities, the web is fast becoming the focal point of all Internet
communications, which are enhanced by the use of hyperlinks (or "links")
interconnecting web sites to other sites using a special protocol. This
protocol employs a common software structure predicated on the use of the
computer code known as hypertext markup language or HTML. A link is
created with this form of programming language by having a word in a text
field (or a graphic image on a web page) linked to the location of another
web page, via a string of information setting forth, at a minimum, the new
web page address presented in hypertext transfer protocol (HTTP).
USERS access these web pages with an application program known as a
browser; the two most popular are Navigator.RTM. by Netscape.RTM. Corp.
and Explorer.RTM. by Microsoft.RTM. Corp. By clicking on the highlighted
text (or specific graphic image), the USER'S connection to the current web
page is transferred to the new web page address associated with the
link--with the new page displayed on the screen. This powerful tool
permits the USER to "surf the web" by clicking on an almost endless
succession of links going to page after page all following a common thread
as defined by the text or graphic component of the link label.
For example, if the word unicorn was highlighted on one web page, the
USER'S selection of that word would lead to a new page having some
connection (strong or weak) to the highlighted concept. A similar link may
be created using a graphic image of a unicorn. In either case, the
selection of the topic causes the new web page address to be inserted into
the browser command line for execution.
One of the greatest promises for the Internet and, in particular, the web,
involves its use as a vehicle of commerce. The enhanced communication,
rich text, and graphic environment makes the web ideal for supporting a
wide variety of transactions, with many of the features of a large
collection of separate stores, such as a mall or similar, but with the
ability to extensively shop a number of competing chains in an instant. By
hopping between competing merchants on the web, the consumer is able to
obtain a good price with minimal difficulty, i.e., no hassles for parking,
surly store clerks, poor inventory, etc. With the use of secured credit
cards or similar, the web consumer has many capabilities that his sidewalk
counterpart is lacking.
Notwithstanding these advantages, commerce on the web has been moving at a
snail's pace. Much of the problem lies in the sheer volume of information
(there are currently over a million sites on the web) and the inability
for the various merchants to get out the message on their products and
services effectively or efficiently, thus leaving the merchant's
corresponding web sites that comprise the critical information largely
unknown to the general public. This problem has been exacerbated by the
exponential growth in the number of web site pages in existence--all
seeking visitors--and, in so doing, diluting the audience.
In an attempt to rectify this problem, there has been a recent effort to
expand USER knowledge of various merchant's on the web by use of
traditional advertising that is adapted to web strictures. For example,
the use of glossy banner ads touting a product or service has now become
reasonably common at a number of popular sites. These banners combine
graphics and text into an appealing display triggering interest in the
USER as they visit the site displaying the banner. By clicking on the
banner, the USER is transported by the magic of the web to the Merchant
site associated with the banner. This site is the merchant's web page, and
provides all the information needed by the USER to partake in the
merchant's goods and services. If inclined, after arriving at the
merchant's site, the USER may order one or more products from the merchant
and pay using an encrypted credit card number. Importantly, the USER would
never have located the merchant but for the banner ad, and the merchant
would not have booked the nascent sale without the USER'S access to the
merchant's web site, via the banner ad. Accordingly, the commerce created
by the banner ad or similar promotional based links is of increasing
importance in allowing merchants to transact on the Internet.
Notwithstanding this importance, the systems in place to allow the use of
referral based electronic commerce are archaic at best. Presently, the use
of banners or similar at high traffic points on the web is supported by a
fee based system that imprecisely gauges the level of use of the ads by
visiting USERS. Typically, the cost for placing a banner is tied to the
number of accesses as measured by CPM's (cost per thousand accesses). The
merchant is thereafter charged a fee tied to this access level. This,
however, fails to measure the much more vital success ratio of those
accesses. More importantly, the tracking of accesses is non-standardized
and without verification. Lacking these key attributes has retarded the
expanded use of promotion based revenues for the content providers, who
remain mired in raising revenues through subscription or CPM based
approaches that continue to evidence significant consumer resistance. In
turn, merchants have been skeptical about conducting commerce on public
networks.
It was with the foregoing understanding that the present invention was
made.
OBJECTS AND SUMMARY OF THE PRESENT INVENTION
It is an object of the present invention to provide a data processing
system for tracking and managing select transactions between a plurality
of computer workstations interconnected, via a common network.
It is another object of the present invention to provide a data processing
system that tracks the access of one or more links placed on a select
location on the web. These links can be either promotional by design or
common icons or text that are merely used for interconnection.
It is yet another object of the present invention to provide a data
processing system that further tracks the transactions between a merchant
and customer that were linked together, via a select promotional link on
the web.
It is yet another object of the present invention to provide a data
processing system that establishes a central Clearinghouse for online
Merchants and site owners to exchange referral offers, receive media
planning and other advertising services.
It is yet another object of the present invention to provide a data
processing system that monitors transactions and organizes information in
a manner that allows for a variety of novel commission, marketing,
advertising and servicing arrangements.
It is still another object of the present invention to provide an
integrated referral system to support co-branding of select products.
It is another object of the present invention to provide a unified referral
arrangement system that permits low cost access, selection and
confirmation of a plurality of promotional relationships. This referral
system can be based on flat fee access, or percentage of revenue or other.
The above and other objects of the present invention are realized in a
specific data processing system designed and configured to operate on one
or more servers interconnected, via communication transmission lines to
allow data links therebetween. The illustrative embodiment of the present
invention includes program controlling logic commands placed on a first
server and configured to provide a link to a second server through a
Clearinghouse server. The link between the first and second servers is
labeled with a reference to a good or service available for purchase on
the second server. The second server includes program controlling logic
commands directing the server responses to inquiries from USERS interested
in purchasing said goods or services, and providing communications to said
Clearinghouse server in accordance with any transactions undertaken by the
USER.
The Clearinghouse server includes the requisite programming logic to track
and report on the level of activity associated with these participants. On
a periodic basis, accounting statements are generated for the participants
directed to the transactions that have transpired during the defined
period.
In accordance with the specific aspects of the present invention, the logic
associated with the servers incorporate the use of select tagging of
information to permit tracking of web site visitors and for tracking and
recording the specific transactions under scrutiny. The identifier
includes select coded data and may take the form of a "cookie" (or similar
tracking device) that is inserted onto the USER'S hard disk memory during
access to the promotional link. Additionally, the Clearinghouse server
provides the key platform allowing the Merchants and Site Owner to
efficiently reach terms on their joint promotional and commercial efforts,
and for each, to internally monitor these external relationships.
The foregoing features of the present invention are more clearly
demonstrated by reference to a specific illustrative embodiment thereof
described herein in conjunction with the following figures of which:
BRIEF DESCRIPTION OF THE FIGURES
FIG. 1 is a schematic block diagram providing an overview of the system;
FIG. 2 is a hardware schematic diagram depicting system components and
interconnections;
FIG. 3 is an overall logic flow diagram depicting a general system
approach;
FIG. 4 is a logic diagram depicting the Merchant's access to the system;
FIG. 5 is a logic diagram depicting the Content Provider's, or site
manager's access to the system;
FIG. 6 is a logic diagram depicting the Clearinghouse server's operation;
FIG. 7 is a logic diagram depicting Merchant server processing; and
FIG. 8 is a screen display of the data fields on the Clearinghouse server.
DETAILED DESCRIPTION OF THE INVENTION
First briefly in overview, the present invention involves the use of a
segregated data processing system having a plurality of discrete sites
individually programmed to operate in concert to monitor and track
transactions between related entities and provide a remuneration to the
participants in accordance with a pre-determined set of transaction
criteria. The system may be more easily understood by its use in support
of transactions on the Internet with the understanding that the foregoing
is also broadly applicable in other domains. The Internet is populated
with a large number of web sites, each managed and configured to provide
information to visitors browsing the web. Some web sites are considered
"Content Providers" (or "Site Owners," i.e., those in control of one or
more web sites) as they include one or more web pages having information
that is of interest to USERS during a browsing session. These Site Owners
currently have at least two mechanisms for generating revenues. The first
involves the charging of a subscription fee to the visiting USERS somewhat
akin to a magazine subscription. This mode of revenue generation is not
particularly relevant to the present invention.
The second established method of raising revenue by a Site Owner is to
place banner ads on the web pages promoting a third party's goods or
services. These promotional banners further include embedded code,
creating a link to the sponsoring third party--hereinafter called the
"Merchant". USERS that access the banner are transferred to Merchant's web
page, via the embedded link and may be presented with the ability to make
a purchase directly from the Merchant. The present invention modifies this
process and allows a portion of the successful sale made by the Merchant
as a credit to the Site Owner. Thus, the Merchant only pays for the
promotional efforts that actually result in meaningful benefits.
The second site of interest is the Merchant's server. At the Merchant's
server, the specific goods are made available for purchase. This involves
the use of secured transactions, via a credit card or other payment
vehicle to order the goods with delivery by any one of the available
delivery services (land or air). To implement the present invention,
programming is installed on the Merchant's server that is capable of
tracking the number of visits by USERS that are precipitated by links with
banner ads. Alternatively, the USER may be transferred back to the
Clearinghouse for completion of the actual purchase transaction.
The final server in this trilogy is the Clearinghouse server. This server
is programmed to communicate with the Merchants and Site Owner (many of
them simultaneously are expected to be online) to facilitate the tracking
and accounting associated with the successful Merchant based transactions.
Of perhaps greater importance, this server provides the software that
brings the Merchants and Site Owners together into binding promotional
arrangements. This coupling of interested parties is done in a low cost
almost seamless fashion. It permits the Merchants control over where their
ads will appear. It provides the Site Owners input into contract terms. It
does all of this with minimal cost and intervention.
In operation and referring to FIG. 1, the USER, block begins the process by
visiting a Site Owner block 20, such as one of the main web pages that
include articles on current events, business news, sports, personal
finance, etc. On this web page, a banner ad (text link or icon) block 25,
is displayed to the USER promoting for example sneakers at an attractively
discounted price. This banner ad is linked, first in a seamless fashion to
the Clearinghouse, block 30. The link then continues directly to the
Merchant block 40. During the linking process, the USER has an identifier
query string appended to the HTTP entry, and possibly a "cookie" placed on
their system. These act as a marker to permit tracking of the USER by the
Merchant and Clearinghouse, determine if and when the USER was involved in
a purchase, and how to allocate the purchase commission to the Site Owner.
With the foregoing brief overview in mind, attention is now directed to
FIG. 2 which provides a hardware diagram of the workstation--server
environment implicated by the present invention. Recognizing that the type
of hardware and software is selected to conform to the data processing
requirements of the system, but is otherwise a matter of choice, it is
useful to understand both environments in the context of the present
invention. Beginning with the USER 10, the typical USER will access the
network, via a modem connection that allows relatively slow transmission
rates. USER will include a workstation PC configured with an application
program known as a browser to allow address driven access to various web
sites in accordance with instructions by the USER.
At block 20, a representative Site Owner is illustrated as a server with
access, via various Internet service providers or ISP's that permit entry
into the web by the USER. The server at the Site Owner is likely to be a
fairly sophisticated computer with multiple lines allowing simultaneous
access to many USERS to the stored web pages forming the content of
desirable information. Importantly, the Site Owner includes a rich array
of interesting subject matter capable of drawing substantial traffic to
the server during operation. In addition, the Site Owner has allocated
space among the various web pages that can be made available for banner
type ads or similar. Finally, it is expected that the Site Owner further
provides text based or other promotional vehicles for use in advertising
practice. Importantly, the text based promotions use hyperlink protocols
and thus operate in the same way as the banner ads. These text links may,
in fact, become more prevalent due to their smaller size and direct
messaging.
The hub of operation is the Clearinghouse server, 30 linked for
interconnection and communication with the network and, in particular, any
Merchants and Site Owners interested in formalizing ad programs based on
the precepts of the present invention. The Clearinghouse server is
equipped with processing power and memory sufficient to meet the demand of
multiple subscribers. In its preferred embodiments, the server is
configured with either a UNIX operating system or an operating system
based on Windows NT. Database management software utilizing Oracle 7 and
Oracle webserver is also configured for the specific operating system
environment.
Finally, in FIG. 2, the Merchant server 40, is similarly linked to the
network, via high speed transmission lines. The Merchant server is also
advantageously configured with either the UNIX or NT operating system.
Turning now to FIG. 3, a high level diagram depicting the overall referral
agreement mechanism and strategy is presented in block form. Specifically,
the referral arrangement is orchestrated by the Clearinghouse server, 100,
bringing together site owners 120 and Merchants 110 into mutually
acceptable terms. Importantly, the entire process can be accomplished with
a minimal amount of involvement or synchronization between the various
entities. In particular, the site owners log-in--new via 130 or existing
at 140; download the requisite software, 170 for promotion management on
their web site and evaluate the available bids from the Merchants on
banner ads or the like, 200.
Similarly, the Merchants also log-in, blocks 150 and 160 and submit offers,
180 in open or closed format. During the session, the Merchant also
reviews offers for banners entered by the site owners which can then be
approved, 190, make offers, 210 and approve bids, 220.
Turning now to FIG. 4, the logic structure for the Merchant access to the
Clearinghouse server is depicted in flow chart form. Access begins at
block 300 and at, block 310, the Merchants enter the HTTP addressing codes
and at block 320 their ID and password. To insure a greater level of
security, this ID may have been previously secured, via known confirmation
services on the web, such as Verisign.RTM.. These services provide
registration protocols that enhance accurate communication on the web.
More information about Verisign.RTM. can be obtained from their web site,
located at:
http:.backslash.www.verisign.com.
Returning to FIG. 4, the programming logic tests the entered ID, block 330;
if new, logic branches to block 340, the Merchant is given a new ID number
and registers the selected password. If the Merchant has previously
registered, however ("No" to test 320), logic continues to test 350 and
entry of the specific password, PSWRD(A). The system then displays a
Master Introductory Page, IP(X) which provides at block 360 details on the
available packaged promotional programs available relating to Merchant
offer type. Typically, the IP display includes segments directed to
frequently asked questions, (FAQ), information about the organization or
entity supporting and/or operating the Clearinghouse site, and a control
panel that makes available to the visitor the various features provided by
the Clearinghouse site. In particular, the choices presented include a
series of stored packages that comprise a well-tested set of terms
relating to the placement of promotion, such as banner ads, textual links
or icons, the size and style of such promotions, the commission payment
terms, etc. In addition, the Merchant may enter custom terms to describe
his promotional needs.
This is accomplished, via test 360. In this illustration, the Merchant
selects an offer type, either "open" or "closed." Open offers are directed
to a broad segment of the public, while closed offers delineate a "peer to
peer" relationship. The auto-approve process, if selected, indicates that
the Merchant offer can be consummated directly by the Site Owner without
subsequent evaluation by the Merchant. If the closed offer form is chosen,
logic branches to block 370, and the Merchant selects site partners from a
list. The contract terms are then entered, via test 380 and blocks 390 to
410. The resulting input form includes the offer ID, commission amount,
whether it is auto-approve, the category of goods, banner size, legal
terms, any explanations, and valid dates for the offer.
If however, the Merchant selects open at test 360, logic proceeds to block
420, where a series of pre-packaged offer forms are presented for
selection; once selected, the various terms are modified, via test 430 and
block 440. The resulting open offer is then stored, block 450 and
registered, block 460, with associated passwords provided for file access,
block 470. The system provides for multiple level access by a Merchant,
controlled by different passwords. For example, a marketing person will
have a first level access, controlled by a first tier password. This would
allow the marketing person to have access to banner graphics and other
similar marketing and promotional materials. A merchant administrator,
however, would receive a more comprehensive password enabling input and
control to a number of features, such as graphic selection, offers, terms,
acceptance, commission structures, etc.
In accordance with the above, the principal terms of the open offer are
similar to those provided in the closed offer. The key difference is that
the open offer is made accessible to all Site Owners, while the closed
offer is only available to a select few.
The use of pre-packaged promotional vehicles, setting terms and other
specifics creates a powerful promotional vehicle. Merchants and Site
Owners will routinely default to a standardized arrangement that is simple
to implement, highly flexible, and inexpensive. The selection process of
the standard package will be low cost and easily accomplished. Moreover,
as the breadth of coverage grows, options such as co-branding will become
part of several packages, increasing the overall impact of the promotion.
In addition, Merchants will routinely download promotional graphics to the
Clearinghouse server, allowing the Site Owners to review the offerings
akin to a catalog.
In a manner similar to the Merchant's, and as depicted in FIG. 5, the Site
Owner will log-in to the Clearinghouse server, block 500, and at blocks
510-515 enter their respective IDs. At test 520, the system checks for
previous registration; if none, the site owner registers at block 530 and
receives a download of the system software that becomes resident on that
site, block 540.
Once in the system, the site owner is presented with the Master
Introductory Page, block 550. At test 560, the site owner decides whether
to search available offers residing on the Clearinghouse server. Selection
thereof branches logic to block 570 where the search criteria are entered
and results displayed, block 580. Upon review of both packaged offers and
selected offers from Merchant, the site owner makes a selection, test 590.
Continuing in FIG. 5, test 600 determines whether the selected offer is
"auto-approve." Auto-approve merely labels the offer as one capable of
being accepted without further input from the Merchant making the offer.
Once selected, the contract terms are confirmed, block 610, and the system
implements the link, activating the banner ad or relevant text on the Site
Owner's server. This may be accomplished with site modification, or
pre-package download, of appropriate software. In its simplest form, the
site owner can cut and paste the particular code and manually insert it on
the relevant page.
If auto-approve has not been activated, the accepted offer is resubmitted
back to the Merchant for acceptance, or is modified first (not shown) and
resubmitted as a counterproposal, block 630. Once through, the site owner
may return to the Master Page, test 640, or end the session, block 650.
In the above arrangement once an offer has been accepted by a Merchant, the
Site Owner will receive the coding required to set up the banner ad
associated with the Merchant. Assuming a Clearinghouse server name of
marketshare.com, the following HTML code presented in Table I is an
example of a set up script to install the advertisement banner on the Site
Owner site:
TABLE I
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<!- - Begin Ad - ->
<p align = CENTER>
<A HREF = "/ /ad.marketshare.com/cgi-bin/stats?
site = content.com&merchant = anycompany.com&arg.vertline. = r.vertline.&a
rg2 = r2">
<IMG SRC = "/ /ad.marketshare.com/ad/www.content.com/25" WIDTH = 468
HEIGHT = 60 BORDER = O ISMAP></A>
<BR><!- -IMG SRC =" /gif/25" WIDTH = 1 HEIGHT = 1 BORDER = 0- - >
<BR></CENTER>
<!- - EndAd - - >
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Turning now to FIG. 6, the processing logic associated with USER access is
depicted in flow chart form. This process conceptually begins at start
block 700 and continues to input block 710 wherein the site location
(HTTP) is entered into the USER'S browser linking the USER across the
network to the site of the Site Owner. At block 720, the Site Owner has on
display banner (ID) for access by the USER.
If the USER fails to access the banner ad ("No" to test 730), processing
logically terminates at block 740. If, however, the USER selects the
banner ad, the site program inputs onto the USER command line the HTTP
address for the Clearinghouse, block 750, and a "query string", i.e., a
string of code placed on the HTTP that provides source information. See,
for example, line 4, Table I. Accordingly, USER access is directed to the
Clearinghouse server, wherein the Clearinghouse server first stores
several pieces of information, e.g., site (ID), banner (ID), and USER (X),
block 760. Immediately thereafter the Clearinghouse server places onto the
USER command line, the address for the Merchant (HTTP) directing USER
control to the Merchant's web page, block 780. In accordance therewith,
information about the product described in the banner ad is now displayed
to the USER including the procedure for purchasing the product, block 790.
The USER is confronted with the option of purchasing the product at test
800. If the USER determines not to make the purchase, logic branches to
block 810, and the server places a cookie onto the USER. This cookie
enables tracking of a later purchase, test 815 and block 817. If, however,
the USER makes the purchase ("Yes" to test 800), information relating to
the purchase and the USER are transferred back to the Clearinghouse
server, block 820. Sales particulars including all co-promotion and
commission payment are then calculated in accordance with stored
protocols, block 850.
As discussed previously, after information is received about the purchase
at the Clearinghouse server, a commission determination is calculated. The
commission will be a factor of several variables including the original
arrangement worked out between the Merchant and the Site Owner, and the
qualification of the USER in terms of access to the Merchant site, i.e.,
whether that USER had been directed to the Merchant site by more than one
banner ad before the purchase was made. If so, a sharing or priority plan
may be required. Once these terms have been implemented, final accounting
for the Merchant and Site Owner is implemented including payment of
commission and recording all transaction details. In this way, valuable
records detailing the activity of select banners in terms of revenue are
created allowing for accurate assessment of promotional impact.
In FIG. 7, a logic flow chart describes the Merchant server operation.
Logic conceptually begins at block 900, with entry into the server by a
USER, via HTTP command, block 910. The Merchant's display screen is
presented at block 920. At test 930, the server determines whether the
USER arrived with an unexpired cookie or similar device; a positive
response branches logic to block 940 and the system stores a "credit" for
the last referral site on the cookie or similar device. Logic continues to
test 950 wherein a purchase decision is tracked.
A purchase results in a specific system recording the transaction, block
970 and the forwarding of the transaction details to the Clearinghouse
server, block 980. If, however, no purchase is made, the system records
this on a cookie or similar device deposited with the USER, block 960.
Processing is completed at block 990.
Turning now to FIG. 8, a sample display screen is shown, presenting the
fields for completion in the offer entry process. As can be readily
ascertained, the Merchant uses this field to specify the terms of the
offer to Site Owners. After completion, the offer specifics are stored and
placed in addressable memory for access by the Site Owners in accordance
with FIG. 5 above.
By employing the above-described system, a plurality of ancillary
capabilities are available. The database tools permit the generation of
detailed transaction reports, which aggregates the data into market
related information. These reports have significant intrinsic value and
represent a second source of potential revenue for the Clearinghouse.
In particular, the transaction data can be embellished with tax related
information, recording sales tax, etc. predicated on the purchase
arrangement. Also, to the extent currency exchanges must be used, these
can be selected and incorporated in the terms, and subsequently
implemented during processing each transaction. Special promotions are
possible, including use of affinity reward programs (akin to frequent
flyer programs).
Co-branding of products/services is also efficiently accomplished in the
foregoing environment. Co-branding is the marketing or sales of two
products through a single promotion. The system controlling software on
the Clearinghouse server includes a "merge" algorithm that takes two or
more images and combines these into an aesthetically acceptable
presentation. For example, the resulting banner on the Merchant site will
include a "return" button to go back to the originating Site Owner.
As discussed above, the Clearinghouse site includes many different
promotion areas and, as such, is subclassified with appropriate headings.
Representative headings are presented hereinbelow in Table II.
TABLE II
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Heading Subcategories
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Automotive Antiques & Classics
Buyer Guides
Classified Ads
Dealerships
Parts
Computers Buyers' Guides
Classified Ads
Hardware
Secondhand
Software
Superstores
Home & Garden Appliances
Furniture
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Although the invention has been described in detail for the purpose of
illustration, it is to be understood that such detail is solely for that
purpose and that variations can be made therein by those skilled in the
art without departing from the spirit and scope of the invention.
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