Published on March 20, 2014
©2014 eMarketer Inc. Cathy Boyle Senior Analyst Top Trends in Mobile Location-Based Advertising M A R C H 2 0, 2 0 1 4 sponsored by:
©2014 eMarketer Inc. Agenda Outlook on mobile-local ad spending Six degrees of location targeting Inventory availability: Balancing reach and relevance Precision targeting tactics and results Location history Twitter – #eMwebinar
©2014 eMarketer Inc. Location- based ad targeting grew far more popular worldwide in 2013
©2014 eMarketer Inc. In the US, spending on local-mobile advertising is rising rapidly and will surpass spending on national campaigns in three years
©2014 eMarketer Inc. Mobile ads can be targeted to standard and nonstandard geographic areas COUNTRY STATE CITY ZIP DMA, MSA LAT/LONG Six degrees of location targeting
©2014 eMarketer Inc. IP location detection A device’s location is derived in various ways, with varying degrees of precision Twitter – #eMwebinar Image source: http://tipzzntrickzz.blogspot.com/2010/07/how-to-track-exact-location-of-any-ip.html
©2014 eMarketer Inc. IP location detection Twitter – #eMwebinar A cocktail of signals A device’s location is derived in various ways, with varying degrees of precision Cell Tower Triangulation Image sources: http://www.clker.com/clipart-cellular-tower.html, http://www.amazon.co.uk/Certified-Refurbished-Kindle-Dolby-Dual- Band/dp/B00AG4KSG6 , http://stackoverflow.com/questions/6958695/displaying-progress-dialog-at-the-start-of-a-gps-application
©2014 eMarketer Inc. IP location detection Twitter – #eMwebinar A cocktail of signals Indoors: Wi-Fi, NFC and Bluetooth Beacons (Bluetooth low energy) A device’s location is derived in various ways, with varying degree of precision http://tech.mn/news/2013/12/10/the-nerdery-labs-apple-ibeacon/
©2014 eMarketer Inc. New York, NY Precise latitude/longitude is required to target nonstandard geographic areas Peoria, IL Twitter – #eMwebinar Building icons made by Adam Whitcroft from Flaticon.com Sale Sale The cocktail of signals provides the most accurate lat/long data. Inventory availability and campaign scale must be considered when relying on lat/long.
©2014 eMarketer Inc. When targeting gets granular … … it’s not always easy to reach a significant slice of the population. “Sometimes it’s hard to find meaningful inventory when you micro-target.” —Rory O’Flaherty, group media director at R/GA “Once you start geofencing or radius targeting … it starts to get a bit pricey. … It will limit the audience you’re reaching.” —Roxanne Gross, media planner for Neo@Olgilvy
©2014 eMarketer Inc. “We find between 18% to 20% of the inventory comes through with accurate and validated lat/long for location points.” —Monica Ho, vice president of marketing for xAD “Because users have to give consent for an app to pass along their GPS coordinates, hyperlocal inventory is on the smaller side. It’s roughly 20% of what’s available.” —Adam Soroca, chief product officer of Jumptap, which was acquired by Millennial Media 10% to 20% of mobile display inventory has ‘clean’ latitude and longitude data “A lot of the location data coming through is erroneous. So there’s a lot of scrubbing to do to get a precise and accurate lat/long. Of all the inventory, 10% to 15% has lat/long.” —David Staas, president of JiWire
©2014 eMarketer Inc. The key to increasing inventory is increasing consumer opt-in rates Twitter – #eMwebinar 40% rarely or never give permission
©2014 eMarketer Inc. Consumers need a compelling reason to share their location
©2014 eMarketer Inc. Precision Targeting: Tactics and Effectiveness
©2014 eMarketer Inc. 3 leading location-targeting tactics Geoaware Geofencing Geoconquesting On the rise: Indoor targeting Audience targeting via location-derived insights
©2014 eMarketer Inc. Geoaware: Location is detected and a location-appropriate message is served Goal: Raise awareness of Omni-Heat jacket and increase foot traffic to participating retailers Tactics: Served location-aware ads with landing pages that carried contact information and directions to closest retailer Case study published by xAd, 2013 Year in Review report. Results: CTR was 52% above industry average
©2014 eMarketer Inc. Geofencing: Targeting devices within a specified radius of a particular location Goal: Engage consumers when they were near a Quiznos restaurant at mealtimes to increase restaurant visitation Tactics: Geofenced Quiznos restaurants and served ads to mobile devices (and web-enabled vehicles) within the geofence at specific times of the day Consumers who gave the ad a “thumbs up” received an email with a coupon offer for the nearby Quiznos “We measured performance through coupon redemptions and were very happy with the results.” —Susan Lintonsmith, CMO, Quiznos
©2014 eMarketer Inc. Geoconquesting: Targeting devices within proximity of competitor locations Case study published by PayPay Media Network Quarterly Report, Q2 2013 Goal: Increase mobile traffic to reservation bookings engine Results: Average CTR: 0.95% CTR on highest engagement day: 2.3% Tactics: Geofenced top-3 competitor hotel locations, airports, plus Best Western hotels Location-aware ads included distance to nearest Best Western Booking engine was embedded on landing page
©2014 eMarketer Inc. On average, geoprecise targeting tactics deliver the strongest results Twitter – #eMwebinar
©2014 eMarketer Inc. However, the power of proximity varies by industry Twitter – #eMwebinar For some, ads served “in-store” can be far weaker than ads served “near-store”
©2014 eMarketer Inc. The clickthrough rate is the baseline metric but secondary action rates give greater insight into ad performance
©2014 eMarketer Inc. Various methods are used to measure foot traffic lift: Tracking the location of future ads served to a device Consumer panels Device ID tracking to delineate natural visitation from ad-inspired visitation Multiple solutions have emerged to measure the impact on foot traffic Twitter – #eMwebinar Example solutions include: Location conversion index (JiWire) Place visit rate (PlaceIQ) Store visitation rate (xAd) Foot traffic index (Verve Mobile) Blind case studies suggest geotargeted mobile ads generate a 2.5x lift in store visits
©2014 eMarketer Inc. Indoor targeting: On-location technology is used to deliver messages Wi-Fi Near Field Communication (NFC) Beacons (Bluetooth low energy, audio) Image source: http://9to5mac.com/2013/09/27/ibeacon-briefing-what-is-it-and-what-can-we-expect-from-it/
©2014 eMarketer Inc. Will iBeacons be a boon for retailers? “We did a pilot in the second and third quarters and it was wonderful. The data was great. The ability for us to drive traffic where we wouldn’t have had traffic otherwise made us continue the exploration of this technology.” —Ryan Bonifacino, vice president of digital strategy for Alex and Ani “Coming out of the gate, this technology is going to be leveraged and driven mostly by large retailers who already have their own apps and have the large app audience.” —Rob Murphy, vice president of marketing for Swirl
©2014 eMarketer Inc. Leveraging Location History to Identify Audiences
©2014 eMarketer Inc. More brands are using location history to pinpoint audience segments “Most marketers today are engaging in location-based advertising through geofencing—targeting everyone in the same areas, within a circle, with the same ad. We’re targeting based on decisions consumers have made in the past.” — Tim Kraus, senior interactive manager for Quiznos, in a June 2013 article published by Mobile Commerce Daily To reach consumers while they were making lunch plans, Quiznos leveraged location history to target mobile users who had been to local restaurants similar to Quiznos within the past 30 days. Twitter – #eMwebinar Tim Kraus photo source: www.linkedin.com/in/timkraus
©2014 eMarketer Inc. Patterns of movement help marketers identify and reach new audiences Samsung found an audience of tech enthusiasts by identifying mobile users who had recently visited a list of electronics stores
©2014 eMarketer Inc. Knowing where a device has been provides insight into consumer intent Twitter – #eMwebinar “The fact that a person has actually been to the Ford Motor Co. dealership is a bigger indicator they’re interested in a car than the person going to the Ford website.” —Scott Symonds, managing director of AKQA Media “Location could change mobile advertising the same way intent data changed desktop advertising. Knowing a user walked onto a car lot is a strong signal of intent and it’s a unique piece of data that’s available only in mobile.” —Jeff Frantz, vice president of mobile at BlueKai Jeff Frantz photo source: http://www.linkedin.com/pub/jeffrey-c-frantz/13/922/240
©2014 eMarketer Inc. Greater data availability means greater responsibility to protect privacy “The more we can marry location and audience, the better.” — Jeff Gooding, director of consumer marketing at Ace Hardware The challenge for data providers lies in parsing the vast amount of historical mobile location information in a way that is both useful for marketers and respectful of consumer privacy.
©2014 eMarketer Inc. Three takeaways: Permission is paramount: Consumers need a compelling reason to opt in and marketers need more inventory with lat/long data. Increasing opt-in rates for location tracking is critical to success. Real-time location targeting improves performance: Knowing where a device is now enables brands to deliver ads that are relevant to a mobile user’s immediate surroundings. Location history provides valuable audience insights: Knowing where a device has been can be used from an analytics standpoint to pin audience types to particular places and even build unique audience segments based on visitation patterns.
The Leader in Mobile Monetization
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Multi-Screen Monetization Platform Ad Server Ad Exchange SSP With OpenX, you have one ad technology platform to manage direct and remnant inventory revenue across desktop, mobile and video
Mobile Monetization Platform Multi-screen Ad Server Multi-Screen Ad Exchange SSP: Mobile Ad Network Mediation Mobile SDK for iOS & Android • 300+ Demand buyers • 250+ Billion ad transactions monthly • 12+ Billion bids/day • 40K advertisers • Set minimum prices • Brand level whitelists/blacklists • Ad Quality filters • Private Exchanges • Supports OpenRTB 2.1 • Supports in app, mobile web and all operating systems • Easily integrate ads into mobile apps and mobile websites • Serves display, native, mobile, video ads • All inventory competes in one platform • Operate off your own sub- domain = Keep your data • 20+ Ad Networks • Not a point solution, reduces impression leakage • Optimize against all your demand sources • Super auction vs. sequential selling • Ability to block bad ads that redirect to the app stores • Ad format support includes: interstitial, IAB/MMA banners. Native, VAST pre-roll, Click-to- action, Mobile Rich-media Ad Interface (MRAID), Celtra, & HTML5 ad units. • Target multiple screen sizes and display orientations and include custom ad parameters using key- value pairs. • Configure event listeners and view messages coming back from the ad server in real-time. • An optional Unity plugin allows you to incorporate OpenX ad inventory into your Unity 3D app.
Mobile Programmatic - Location based buying and selling • In-app SDK allows the app publishers to acquire GPS derived location. • Mobile Optimized Websites require the user to opt-in to provide location. • App publishers that have location- sharing capabilities can choose to expose the latitude and longitude of each impression into the exchange. • True GPS derived lat/long location data is one of the only things that can give a publisher’s mobile impressions a price boost. • Buyers are seeking accurate GPS derived location, DeviceID and App ID. • These parameters are passed in the bid request in addition to any other targeting parameters. • A bid request is sent from the media exchange to the advertisers. Afterwards, the system of the advertiser values the impression. If there is positive feedback and the impression is highly valued including true GPS derived location, the system places a bid on the auction. Ad Exchange Supply Demand
©2014 eMarketer Inc. Q&A Session Top Trends in Mobile Location-Based Advertising Sponsored by: OpenX You will receive an email tomorrow with a link to view the deck and webinar recording. Cathy Boyle Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Mobile Ad Targeting: After Years of 'Spray and Pray,' Signs of Sophistication Appear Mobile App Marketing: 10 Tactics Used by Successful App Marketers Cross-Platform Attribution: A Status Report on Overcoming Select Attribution Challenges The Effectiveness of Geotargeted Mobile Ads: How Location-Based Data Pumps up Performance To learn more: www.emarketer.com/products 800-405-0844 or firstname.lastname@example.org
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