ShopRite stores to use computerized carts with customized ads

Microsoft's Atlas technology used to serve up ads

By Linda Rosencrance

January 15, 2008 12:00 PM ET

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Computerworld - Microsoft Corp. has teamed with a supermarket chain and other companies to deliver personalized advertising to shoppers via computerized shopping carts, Microsoft and its partners said today.

The initiative with MediaCart Holdings Inc. and Wakefern Food Corp. is another way that Microsoft aims to derive revenue from ads as it continues to struggle with Google Inc. to take more of the online advertising market.

Consumers began testing the MediaCart shopping carts last spring in certain ShopRite grocery stores, which are owned by Elizabeth, N.J.-based Wakefern, according to a statement. Additional customer trials will be conducted in ShopRite stores in the second half of this year. Eventually, ShopRite expects to roll out the computerized shopping carts in all of its stores.

Microsoft will deliver the ads based on data obtained from ShopRite's customer loyalty cards, according to the companies. When shoppers scan their cards on the computerized shopping carts, they will see ads and promotional offers on the screen based on their purchasing histories, the statement said. The companies said no personally identifiable information will be shared with Microsoft, MediaCart or any advertiser. However, advertisers will receive reports and analytics data to determine how the ads are working in the stores.

Microsoft's technology is serving video ads to computers on the MediaCart screen through Atlas technology, which Microsoft acquired through its purchase of aQuantive Inc. last year. The $6 billion deal to purchase the digital marketing and advertising agency is Microsoft's largest acquisition to date and was meant to bolster the company's plan to increase its revenue from its advertising business.

So far, Microsoft's ad business has improved only incrementally, according to company financial reports, but it expects more significant growth this year.

In addition to using Microsoft's Atlas technologies, the MediaCart is also built on Microsoft Windows CE and Microsoft SQL Server.

Elizabeth Montalbano of the IDG News Service contributed to this report.

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