Inventory and revenue maximization method and system
View Patent ↗A method is provided for enterprise management and bundling of inventory to maximize revenue on perishable products. An electronic data-mart collects factors for the probability and price sensitivity of a buyer. The data-mart also collects rules for inventory scaling, available inventory to sell, budget (goal) information, advertiser payment history, and station performance data to feed to a scenario planner. Once three or more variables exist, algorithms create scenario plans to present the most profitable bundle of offerings. The scenarios are typically pre-approved although presented to local business units for an abnormality failsafe. Once processed by local business units, the scenarios are presented to the buyer. Negotiations typically cause the process to restart. The main systems that interact to build scenarios are: an enterprise data-mart, a scenario planner, a performance measurement system, a rate or yield management subsystem, a traffic and accounts receivable system, and a local inventory booking system.
1. An advertisement inventory management computer system, comprising:
a performance measurement system comprising a processor configured to measure performance of a medium selected from a group consisting of radio, television, and print, in which advertisement units are used;
a revenue maximization system comprising a processor configured to determine prices for the advertisement units based on predetermined pricing considerations and sales information associated with sales of advertisement units, at least one measurement noise is filtered out of said sales information, wherein the pricing considerations include a particular buyer's historical unwillingness to pay a particular price for previous advertisement units;
an information storage system configured to receive information from the performance measurement system and revenue maximization system to generate scenarios wherein combinations of advertisement units are grouped together to meet a buyer's criteria and to maximize revenue received by a seller of the advertisement units, wherein the buyer's criteria includes a number of people and frequency people will be exposed to the advertisement units; and
a scenario planner to display a scenario generated by the information storage system to a prospective buyer of advertisement units.
2. The advertisement inventory management computer system according to claim 1 , the performance measurement system receiving information related to an extent of an audience to which the advertisement units are exposed.
3. The advertisement inventory management computer system according to claim 1 , the predetermined pricing consideration including at least three considerations selected from a group consisting of total number of unsold advertisement units, category of buyer attempting to purchase the advertisement units, the buyer's history in purchasing advertisement units, and budget of the seller of the advertisement units.
4. The advertisement inventory management computer system according to claim 3 , the revenue maximization system managing yield by using functions of sell-out forecasting, revenue forecasting, fuzzy rules, and pricing adjustment.
5. The advertisement inventory management computer system according to claim 1 , the buyer's criteria including a desired budget for purchase of the advertisement units, performance measurements from the performance measurement system, number of people and frequency people will be exposed to the advertisement units.
6. The advertisement inventory management computer system according to claim 1 , the revenue maximization system changing a quantity of advertisement units available.
7. A method comprising:
measuring performance of a communication medium in which advertisement units are used, the communication medium selected from a group consisting of radio, television, and print, by executing program instructions in a computer system;
determining prices for the advertisement units based on predetermined pricing considerations and sales information associated with sales of advertisement units, at least some of said sales information filtered to remove measurement noise, by executing program instructions in a computer system, wherein the pricing considerations include a particular buyer's historical unwillingness to pay a particular price for previous advertisement units;
receiving performance measurements from a performance measurement system and prices from a revenue maximization system, by executing program instructions in a computer system;
generating scenarios based on the performance measurements and the prices, the scenarios including combinations of the advertisement units grouped together according to criteria specified by a prospective buyer and revenue received by a seller of the advertisement units, wherein the criteria includes a number of people and a frequency at which people will be exposed to the advertisement units, by executing program instructions in a computer system; and
providing the scenarios to a prospective buyer, by executing program instructions in a computer system.
8. The method of claim 7 , comprising receiving information related to an extent of an audience to which the advertisement units are exposed, by executing program instructions in a computer system.
9. The method of claim 7 , the predetermined pricing considerations including at least three considerations selected from the group consisting of total number of unsold advertisement units, category of buyer attempting to purchase the advertisement units, the buyer's history in purchasing advertisement units, and budget of the seller of the advertisement units.
10. The method of claim 7 , the buyer's criteria including a desired budget for purchase of the advertisement units, performance measurements, number of people and frequency people will be exposed to the advertisement units.
11. The method of claim 8 , comprising managing yield by using functions of sell-out forecasting, revenue forecasting, fuzzy rules, and pricing adjustment, by executing program instructions in a computer system.
12. The method of claim 7 , comprising changing a quantity of advertisement units available, by executing program instructions in a computer system.
13. The method of claim 7 , comprising:
assigning a probability that the buyer will make a purchase from the unsold inventory, by executing program instructions in a computer system; and
wherein prices for the advertisement units are based on at least the probability.
14. A non-transitory computer readable medium tangibly embodying a program of computer executable instructions, the program of instructions comprising:
at least one instruction for a computer to measure performance of a communication medium in which advertisement units are used, the communication medium selected from a group consisting of radio, television, and print;
at least one instruction for a computer to determine prices for the advertisement units based on predetermined pricing considerations and sales information associated with sales of advertisement units, at least some of said sales information filtered to remove measurement noise, wherein the pricing considerations include a particular buyer's historical unwillingness to pay a particular price for previous advertisement units;
at least one instruction for a computer to receive performance measurements and prices associated with the advertisement units;
at least one instruction for a computer to generate scenarios based on the performance measurements and the prices, the scenarios including combinations of the advertisement units grouped together according to criteria specified by a prospective buyer and revenue received by a seller of the advertisement units, wherein the criteria includes a number of people and a frequency at which people will be exposed to the advertisement units;
at least one instruction for a computer to provide the scenarios generated by the information storage system to a prospective buyer.
15. The non-transitory computer readable medium of claim 14 , the program of instructions comprising at least one instruction for a computer to receive information related to an extent of an audience to which the advertisement units are exposed.
16. The non-transitory computer readable medium of claim 14 , the predetermined pricing considerations including at least three considerations selected from a group consisting of total number of unsold advertisement units, category of buyer attempting to purchase the advertisement units, the buyer's history in purchasing like advertisement units, and budget of the seller of the advertisement units.
17. The non-transitory computer readable medium of claim 14 , the buyer's criteria including the desired budget for purchase of the units, performance measurements, number of people and frequency people will be exposed to the advertisement units.
18. The non-transitory computer readable medium of claim 14 , the at least one instruction for a computer to determine a price including at least one instruction for a computer to manage yield by using functions of sell-out forecasting, revenue forecasting, fuzzy rules, and pricing adjustment.
19. The non-transitory computer readable medium of claim 14 , the at least one instruction for a computer to determine a price including at least one instruction for a computer to change a quantity of advertisement units available.
20. The non-transitory computer readable medium of claim 14 , the program of instructions comprising:
at least one instruction for a computer to assign a probability that the buyer will make a purchase from the unsold inventory; and
at least one instruction for a computer to determine a price for the advertisement units based on at least the probability.