Ads head to computerized shopping carts

Advertisers are always finding new ways to appeal to potential customers. For years they've pushed their products on television, in magazines and on radio. Today they can also reach most of us via the Internet and our cell phones. In addition to having more ways to reach consumers, technology is making it easier for advertisers to be smarter about each shopper's preferences.

For example, if you visit a Web site that has a "sponsored links" box, you are viewing ads provided by an advertiser. Web advertising that says "Google" below it is what I consider to be targeted advertising. The search engine "reads" the information on the Web site to know what the site is about, and then provides ads for companies that match the site's topics. Naturally, site visitors are more likely to click through to the advertiser's site when the ads are customized to the visitor's interests.

Similarly, supermarkets with loyalty cards are able to deliver relevant coupons and discounts to shoppers based on their past shopping behavior. For example, if the shopper purchases Brand X of frozen vegetables, they may receive a coupon for Brand Y frozen vegetables at the register when they check out. However, the shopper would need to hold on to that coupon to use it on their next visit, which is certainly not a foolproof system. Coupon redemption for electronic register coupons is less than 10 percent.

Now Microsoft is partnering with a company called MediaCart, a maker of "smart" shopping carts, to provide a targeted-advertising tool to supermarkets. Their technology solution aims to provide a vehicle to deliver relevant coupons to customers before they check out. MediaCart is partnering with 220 ShopRite stores in New Jersey, New York, Connecticut, Pennsylvania and Delaware to conduct a pilot program.

Shoppers can take the computer-equipped carts and receive point-of-purchase coupons for items they are likely to use. The screens mounted in the shopping carts will play short commercials (up to 15 seconds long) before issuing a coupon. The system will know the types of coupons to offer in two ways. First, shoppers can swipe their store loyalty card that will tell the system the types of products the shopper purchased in the past. Second, the system uses GPS-style location technology that tells the computer where the shopper is in the store.

If the system issues a coupon for an item that you had on your list and definitely intended to buy, then you'll save money. However, my guess is that the system will prompt more impulse purchases, and I'd be willing to guess that the products featured would not necessarily be on sale. Because most shoppers respond to impulse purchase ads, this system could be more of a benefit to advertisers.

As a mother, I can imagine the challenge that these shopping carts would present for parents of young children. They are the best impulse purchasers of all, and if they watched an entertaining video about chocolate chip cookies, I am pretty sure they'd ask to get the cookies. Clever parents may consider taking these carts down the frozen vegetable aisle or through the produce department to see if these systems could get children enthused about vegetable purchases!

That would be a winner in my book.