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Top trends mobile location baseda dvertising - e-marketer

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As mobile budgets swell and brands look for ways to make their ads contextually relevant to consumers, geotargeted mobile display advertising is on the rise, as are campaign results.
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©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:
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Page 1: Top trends mobile location baseda dvertising - e-marketer

©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:

Page 2: Top trends mobile location baseda dvertising - e-marketer

©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

Page 3: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

Location-

based ad

targeting

grew far

more

popular

worldwide

in 2013

Page 4: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

In the US,

spending on

local-mobile

advertising

is rising

rapidly and

will surpass

spending on

national

campaigns

in three

years

Page 5: Top trends mobile location baseda dvertising - e-marketer

©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

Page 6: Top trends mobile location baseda dvertising - e-marketer

©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

Page 7: Top trends mobile location baseda dvertising - e-marketer

©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

Page 8: Top trends mobile location baseda dvertising - e-marketer

©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/

Page 9: Top trends mobile location baseda dvertising - e-marketer

©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.

Page 10: Top trends mobile location baseda dvertising - e-marketer

©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

Page 11: Top trends mobile location baseda dvertising - e-marketer

©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

Page 12: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

The key to increasing inventory is

increasing consumer opt-in rates

Twitter – #eMwebinar

40% rarely

or never

give

permission

Page 13: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

Consumers need a compelling reason to

share their location

Page 14: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

Precision Targeting:

Tactics and

Effectiveness

Page 15: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

3 leading location-targeting tactics

Geoaware

Geofencing

Geoconquesting

On the rise:

Indoor targeting

Audience targeting via location-derived insights

Page 16: Top trends mobile location baseda dvertising - e-marketer

©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

Page 17: Top trends mobile location baseda dvertising - e-marketer

©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

Page 18: Top trends mobile location baseda dvertising - e-marketer

©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

Page 19: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

On average, geoprecise targeting tactics

deliver the strongest results

Twitter – #eMwebinar

Page 20: Top trends mobile location baseda dvertising - e-marketer

©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”

Page 21: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

The

clickthrough

rate is the

baseline

metric but

secondary

action rates

give greater

insight

into ad

performance

Page 22: Top trends mobile location baseda dvertising - e-marketer

©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

Page 23: Top trends mobile location baseda dvertising - e-marketer

©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/

Page 24: Top trends mobile location baseda dvertising - e-marketer

©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

Page 25: Top trends mobile location baseda dvertising - e-marketer

©2014 eMarketer Inc.

Leveraging Location

History to Identify

Audiences

Page 26: Top trends mobile location baseda dvertising - e-marketer

©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

Page 27: Top trends mobile location baseda dvertising - e-marketer

©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

Page 28: Top trends mobile location baseda dvertising - e-marketer

©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

Page 29: Top trends mobile location baseda dvertising - e-marketer

©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.

Page 30: Top trends mobile location baseda dvertising - e-marketer

©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.

Page 31: Top trends mobile location baseda dvertising - e-marketer

The Leader in Mobile Monetization

Page 32: Top trends mobile location baseda dvertising - e-marketer

OpenX Overview

Experienced Team Investors Accolades

Founded in 2007

300+ employees

Global Offices

LA (HQ), NY,

London & Tokyo

$150M+

Revenue in

2012

#7 Forbes Rank

Most Promising

Companies

#5 Deloitte’s Rank

Technology Fast

500™

Well-capitalized

$75M+ to date

Infrastructure

5 data centers

3 continents

5,000+ servers

History

Page 33: Top trends mobile location baseda dvertising - e-marketer

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

Page 34: Top trends mobile location baseda dvertising - e-marketer

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.

Page 35: Top trends mobile location baseda dvertising - e-marketer

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

Page 36: Top trends mobile location baseda dvertising - e-marketer

©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

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