Location Based Mobile Advertising: It’s All About Results!

Location Based Mobile Advertising:

It’s All About Results! MMA Webinar Series

July 2014

About the MMA As the premier global trade association dedicated to accelerating the transformation and innovation of marketing through mobile, the MMA represents the entire marketing ecosystem and brings together over 700 organizations globally, allowing us to facilitate connections, deliver insight and drive impactful action for our members and the industry at large For more information about membership email: [email protected] or visit http://www.mmaglobal.com/member-center/benefits •  INSIGHTS:

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7/11/14 Proprietary & Confidential 2

Presenters


Moderator Leo Scullin!Head of Global Industry Initiatives!Mobile Marketing Association!

Heather Sears!VP, Marketing!YP!!

Brett Kohn!Director of Marketing!Thinknear!

Managing Your Questions


Share the Insights #MMAWeb

OVERVIEW

•  Understanding Marketplace Growth and Challenges

•  Why Location Measurement Matters

•  Key Location Metrics

•  Summary

Understanding Marketplace Growth & Challenges

Ad Spend Has Not Caught Up to Consumer Usage

Source: @KPCB, IAB, eMarketer

Lack of Metrics Inhibits Faith in ROI

Is producing ROI 29%

Will eventually produce ROI 51%

Is unlikely to produce ROI 16%

Other 4%

Attitudes Toward Mobile Marketing’s Effect on ROI According to Marketing Professionals Worldwide

Nov 2013, % of respondents

Source: ExactTarget, "2014 State of Marke?ng," Jan 8, 2014

Effective Mobile Measurement Starts with Location

56% of mobile-driven purchases actually occur in-store

More than 50% of smartphone users expect business locations to be within 5 miles of their current position

Source: xAd/Telmetrics Mobile Path to Purchas 2014, Google 2011

90% of Smartphone users search locally

Consumers Have Come to Associate Location with Mobile Campaigns

Identifying Key Location Metrics

Driving Foot Traffic

Increasing Brand Awareness

Influencing Offline Purchases

Three primary mobile campaign objectives as identified by agency marketers

Aligning Metrics with Campaign Objectives is a Key Starting Point to Measuring Success

Source: Thinknear/DMR Buyer Insights Survey, April 2014

Example Location-based Campaign Tactics

•  Standard GeoTargeting

•  GeoAudience Targeting Demographic, ethnographic or purchase driven

•  Contextual Location Targeting Environmental or event driven

Courtesy: MMA

Objective 1: Increasing Brand Awareness

Location-Based Measurement Options

Click Through Rate User engagement indicator

Unique Audience Reach Scale across the campaign

Brand Lift Increase in awareness or intent

Objective 1: Increasing Brand Awareness

What is it A basic ad performance measure, made popular in digital advertising, brought over to mobile as an initial proxy for understanding user engagement with mobile ads.

How does it work Determined using a simple calculation (Ad Clicks/Ads Served)

How is it used Based on the percentage of ads click on, divided by the total number of impressions served

Click Through Rate

Campaign Overview: •  Targeting through location- based

behavioral profiles and scientific campaign optimization

•  Focus on the NY, Chicago and LA DMAs

Measurement: •  Campaign doubled industry

benchmark CTR as well as ROAS

Case Study: Click Thru Rate

Source: YP

What is it The percent of target consumer group exposed to a mobile ad at least once during a specific period of time.

How does it work In mobile this is typically based on the number of unique device ID’s (IDFA, AAID, etc.) reached during the campaign period

How is it used Unique Audience Reach is used to ensure that your ad message was reached by a large audience vs. a small audience seeing your ad multiple times

Unique Audience Reach

Campaign Overview: •  Raise awareness of Goodwill donation centers

among Hispanic audiences nationwide

•  Focused on key markets and the localized activities of Hispanic users as they conduct their mobile-driven lives

Measurement: •  The campaign over-performed among target

Hispanic audiences, demonstrating this group was nearly 60% more likely to visit Goodwill Donation Centers than the average consumer

Case Study: Unique Audience Reach

Source: xAd

What is it Determines if an ad campaign effectively increased the awareness or lift of a brand, product, etc., post ad exposure.

How does it work This is typically conducted via a survey to an exposed group of mobile users (test), compared to survey responses from a non-exposed group of users (control).

How is it used Brand Lift can take several forms but is most often used by marketers to measure the effectiveness of campaigns, and to what extent their advertising has shifted consumer perception and intent against previously calculated metrics.

Brand Lift

Campaign Overview

•  Mobile rich media focused on promoting allergy medication

•  Geotargeting based on real-time pollen counts

•  Where-to-buy and coupon execution

Measurement Tactics

•  Lift in Brand Favorability, Purchase Intent and Awareness

•  Survey driven control/exposed driven approach

Case Study: Brand Lift Big Pharma Generates Brand Awareness Through Rich Media and Content

Source: Thinknear


GeoFence Targeting Real-time proximity to advertiser locations

Competitor Conquesting Real-time proximity to competitors

Dynamic Creative Localized content on-the-fly

Objective 2: Driving Foot Traffic


Store Locator Actions Post-click measurement of map and/or navigation sessions

Store Visit Lift Increase in store foot-traffic attributable to mobile campaign

Objective 2: Driving Foot Traffic

What is it Post-click actions – such as click to view a map or navigate to a store location – that illustrates a strong intent to visit a physical location

How does it work Typically referred to as a percentage of secondary actions post an ad click. Calculation is similar to CTR except based on all secondary ad click actions.

How is it used By providing these types of actions to consumers, typically in a post ad click environment such as a landing page, advertisers have the ability to understand the level of interest and engagement in the campaign at hand and likelihood of consumer foot traffic associated with that campaign.

Store Locator Actions

Campaign Overview: •  Increase local awareness of Outback’s

Wednesday dinner specials among five locations in the Indianapolis DMA

•  Leveraged localized search insights to serve

location-dynamic creative and landing pages within key pockets of activity inside a five mile area surrounding each location

Measurement: •  Campaign exceeded the client CTR benchmark

by 25% •  48% of secondary action activity was click to

map and driving directions

Case Study: Store Locator Actions

Source: xAd

What is it A metric with various formulas (and names), depending on the advertiser or vendor, but all built around a notion of measuring increased foot traffic as a result of a mobile campaign.

How does it work This measurement can be conducted two ways: •  Mobile panel who have agreed to have their location behaviors

tracked via a mobile app installed on their phone •  Tying location based mobile ad requests of exposed and non-

exposed users to other ad requests seen in or near the store(s) which were advertised

How is it used To understand the real-world impact of a mobile ad campaign by tracking mobile user visitation to brick and mortar store fronts, and measuring shifts in traffic patterns by those exposed to the ad campaign as well as those unexposed.

Store Visit Lift

Campaign Overview

•  National campaign

•  Localized creative content for each location

•  Dynamic distance tags to encourage visits

•  Pricing Specials

•  Store Hours

Measurement

•  Restaurant visitation lift via panel study

•  2.16% post-click store conversion rate

•  $1.35 cost per store visit

National Pizza Chain Leverages Store Visit Lift to Measure Mobile Campaign

Case Study: Store Visitation Lift

Source: Thinknear


Geo-retargeting / Behavioral Targeting Brand-specific or category retargeting based on location history

Dynamic & Localized Content Content optimized by location context

Couponing & Promotions Purchase-driving incentives

Objective 3: Influencing Offline Purchases


Phone Calls Qualified leads by locality or to central call centers

Coupon Redemption Tracking by location and/or campaign strategy

Sales Lift Direct or regression based lift measurement

Objective 3: Influencing Offline Purchases

What is it Ability to click thru a mobile ad and place a call directly to the business being advertised, in device.

How does it work Typically referred to as a percentage of secondary actions post an ad click (CTC). Calculation is similar to CTR except based on all secondary ad click actions. How is it used Typically used as part of a set of secondary actions offered on a mobile landing page. Phone calls are made to a specific business location, and from there more specific metrics can be tracked such as length of call.

Phone Calls

Campaign Overview •  Leverage mobile’s unique “just in time” access to

targeted consumers in order to drive increased foot traffic into local Dunkin’ Donuts stores

•  Implemented sponsored search with dynamic-location secondary actions available on subsequent landing pages

Measurement •  Of the secondary actions offered, the campaign

drove 27% of that activity to quality, vetted consumer calls - demonstrating high intent to visit

Case Study: Phone Calls

Source: xAd

What is it Coupon creative provided as part of a secondary ad click option, giving consumers the ability to utilize a coupon at a brick and mortar storefront.

How does it work Typically tracked based on the number of coupon downloads or unique codes used at the point of sale.

How is it used Coupon implementations range from image-based to Passbook integrations, but provide consumers with the ability to save and redeem coupons discovered in-device. Advertisers are also able to directly track purchase activity back to ad engagement, providing deeper ROI metrics.

Coupon Redemption

Campaign Overview

•  Fuel foot traffic and local coupon redemption at Pinkberry locations nationwide surrounding new greek yogurt product

•  Location and audience-based targeting to target location-dynamic coupon creative to the right users at the right moments

Measurement

•  Campaign exceeded client benchmarks by 100% and drove significant coupon redemption

Case Study: Coupon Redemption

Source: xAd

What is it The percent-increase of sales directly driven by ad or campaign, as compared to calculated sales averages during the same time period.

How does it work This measurement is usually determined through a 3rd party company that can match sales records from credit card companies or specific POS systems by market and/or exposed mobile device IDs.

How is it used Sales Lift is an important indicator of offline activity and can provide valuable estimates that help gauge the ROI of mobile ad campaigns and optimize for future planning.

Sales Lift

Targeting: •  San Francisco, Madison, Seattle test

markets •  Targeting competitors customers

(Subway, McDonald’s, Wendy’s) •  < 10 miles of location Results: •  6% lift in sales over

national average “Have a testing mentality － always” Tim Kraus, Director of Digital Marketing, Quiznos

Source: YP

Case Study: Sales Lift

Summary

•  Consumer mobile media consumption is experiencing high growth but ad spend lags. A key reason is perceived lack of metrics

•  Location-based mobile campaigns can drive results for critical brand metrics including Influencing Brand Awareness, Driving Foot Traffic and Influencing Offline Purchases

•  Aligning metrics with campaign objectives is the starting point to measuring success

MMA Webinar Series


Creating More Personalized Mobile Marketing Strategies that Drive Value July 16, 2014 Completing the Attribution Model with Mobile Location Based Technologies August 12, 2014 Empower Customer Engagement with Mobile Context August 14, 2014

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