How Mobile Location and Behavioral Context Skyrocket Conversion Rates
Nov 07, 2015
How Mobile Location and Behavioral Context Skyrocket Conversion Rates
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INTRODUCTION
Context Data Enables New and Powerful Advertising Attribution
Introduction
How To Deliver Relevant Content Everywhere
How Context Data Increases Ad Inventory Value
TABLE OF CONTENTS
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Mobile advertising is about using the power of always-connected mobile devices to create stronger connections between advertisers and their audiences. Mobile devices captivate consumers because they augment and enhance their lives, prompting them to openly share their location and social data. Advertisers can use this individual-level data to bolster marketing strategies and messages, but they need to know where to start.
Accurate location integrated with layers of venue and demographic context is the holy grail for advertisers. The aggregation of data from a mobile device allows advertisers to gather context on their audiences, enabling better targeting for brands, more relevant content for consumers, and higher value ad inventory for publishers. True context data delivers higher profitability for the same ad impressions. Advertisers can improve user engagement by reaching their audiences with relevant, higher value content where and when they are ready to make a buying decision.
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Context Data Enables New and Powerful Advertising Attribution
Chapter
CHAPTER 1 CONTEXT DATA ENABLES NEW AND POWERFUL ADVERTISING ATTRIBUTION
Online impressions and transactions are directly correlated and easily measurable,
making digital a preferred channel. Savvy advertisers always measure ROI using online
and mobile click-through and conversion rates. They measure ad success by attributing
transactions to page views, impressions and specific actions taken. And naturally they
want to be able to look at cost per conversion across campaigns, channels, creative,
message, location and more.
The challenge is that attribution is messy in a multi-device, cross-channel world. People
use their smartphones while watching TV, shopping, and even working. Their attention
is fragmented. Mapping the myriad of messages that contribute to a buying decision
is impossible, and early influences rarely receive credit for driving eventual purchases.
Advertisers cant simply pay attention to the last impression a consumer sees.
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1. ImpressionBrands and agencies buy ad impressions from their target market
2. LocationThe network or exchange serving the ad validates when an audience member who has seen an ad goes to the advertisers location.
3. AttributionThe advertisers pays more for the conversion.
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Advertisers miss these multi-channel
conversions, and often incorrectly
attribute their overall ROI to the last
message that was seen.
How Location-based Context Strengthens Advertising CampaignsAdvertisers can now connect online
and offline data to more enable a
more accurate view of their spending
attribution for campaigns. Mobile
technology enhanced by geofencing
allows advertisers to attribute when
a consumer sees an online ad to
the resulting offline transaction.
Conversely, the same technology can
enable attribution of offline ads such
as billboard and out-of-home displays
to offline and online transactions. This
detailed insight on a users shopping
patterns is based on the correlation
between where and when they see an ad
and their purchase behavior afterwards.
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Geofencen. A virtual perimeter around a physical area that triggers an action when a users device enters or leaves the area.
Example: Mobile apps are building geofences around retail locations in order to alert their users about nearby deals.
Skyhooks Infinite Geofences n. Infinite virtual perimeters around physical areas, regardless of device limitations such as those on Android (100 geofences) and iOS (20 geofences). Infinite Geofences from Skyhook go beyond latitude, longitude and radius with custom polygon geofences.
How Geofencing Helps to Strengthen AttributionWhen a mobile user enters a geofenced area, even when their device is inactive, the
monitoring app is awakened and notified of the geofence trigger. With this always-on
technology, advertisers can discover when consumers are within view of an offline ad and
when they enter a store. The reach and precision of background geofencing enables the
attribution of real-world activities to online, offline, and out of home calls to action.
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For example: A man at Boston Logan airport
sees a billboard ad in his terminal, and
a backgrounded application records an
impression when he enters the viewable
area. The application now knows to monitor
geofenced stores featured on the billboard.
This works whether he visits a store in
Boston or near his home in Chicago, and
the billboard advertiser receives credit for
driving a real-world conversion.
If a brands mobile experience is tightly
integrated with their ecommerce site, they
can also attribute offline impressions of their
advertisements to online sales. For instance,
a large retail company like Bloomingdales
purchases a billboard ad on a major
highway. When a Bloomingdales app user
passes the billboard, the mobile app records
that she entered the geofence around the
billboard and connects that information to
her subsequent online purchases.
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How Context Data Increases Ad Inventory Value
Chapter
Thanks to advances in mobile and geofencing technology, advertisers can now attribute their digital media spend to offline transactions. This attribution makes media agencies more accountable for their budgets than ever. And it opens the door for advertisers to make better decisions based on more accurate cost per acquisition metrics.SchneidermikeVP of MarketingSkyhook Wireless
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CHAPTER 2HOW CONTEXT DATA INCREASES AD INVENTORY VALUE
Building Audience Personas Advertisers have the ability to intelligently build contextual personas of their audience
based on their real-world activities. Skyhooks solution builds these personas by combining
census demographic data--like income level, education, gender, age and ethnicity--with
behavioral patterns based on where users go and when. These personas provide powerful
insights into affinities and intents, enabling advertisers to enrich their inventories with
contextual data on audience lifestyles. For example, a user who visits beauty supply shops
and high end clothing stores and has an income of over $200K is classified as a Luxury
Shopper. The publisher who builds that profile can command increased CPMs for ad
impressions to that highly desirable segment, and advertisers can target those users with
relevant messages to achieve increased conversion rates.
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BEERBEER
BEERBEER
Venue: Zicos4000 Warner Blvd, Burbank, CA 91522Lat. 34.149898 Long. -118.341017
Category: Food & DrinkSubcategory: RestaurantsVenue type: Italian Restaurant
Persona details:
?
Anonymous Person Male, age 25-30 Sports fan: User who shops at sports retailers and visits
stadiums and arenas after
work hours.
Building Venue ProfilesThe more data advertisers have about a location, the more they know about who lives,
works and visits there. Skyhook aggregates anonymous consumer personas into layers
of context assigned to areas and venues. Over time, as Skyhook processes more location
requests, it refines its knowledge of a venue. Venues take on the attributes of users who
live, work, shop, eat and drink at that address. These venue profiles offer advertisers an
opportunity to charge a premium for audiences based on their precise, venue-level location
and the associated interests and activities.
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BEERBEER
Personas
Sports FanSports Fan
Personas
Luxury Shopper
Personas
Business Traveler
Anonymized Data Protects Consumer PrivacyTracking consumer behavior is always a sensitive topic.
Skyhook builds anonymized personas without ever using
personally identifiable information (PII). This method empowers
advertisers to access powerful contextual data about segments
of their audience without violating individual privacy.
By cross referencing consumer personas with venue profiles,
advertisers can have contextual data on where users are and
when. This data can be applied to media buying algorithms to
increase the value of ad inventories. This level of audience and
venue knowledge enables advertisers to deliver more valuable
advertising at a higher CPM and with greater conversions.
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Personas provide powerful insights into affinities and
intents, enabling advertisers to enrich their inventories with aggregate contextual data on audiences segmented by lifestyle.
PersonasAnonymous
How To Deliver Relevant Content Everywhere
Chapter
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CHAPTER 3HOW TO DELIVER RELEVANT CONTENT EVERYWHERE
Because users carry their mobile devices at all times, publishers can easily get to
know their audiences based on where they go and what they do. We are not far from
a future in which content is constantly adapted based on user context. This rich
contextual data on users enables publishers to know the interests, activities, shopping
patterns and mobile behavior of their audiences at a given time and place. Armed
with that data, publishers can make smarter decisions about what content will most
likely interest and engage their readers. A highly engaged audience means more ad
impressions to serve, and a highly segmented audience is an opportunity to monetize
with targeted advertising.
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As Jim visits his local Microshack Electronics store, an ad network running on his phone detects that he is inside a geofence.
The ad network applies the persona of Electronic Shopper to Jims phone.
When Jim enters another geofence near a Super Buy location, the ad network delivers a relevant Super Buy ad to Jims phone.
Jim, intrigued by the ad content and the convenience of a store nearby, decides to go to Super Buy to make a purchase.
Super Buy Electronics uses the same ad network to target Electronic Shoppers who have visited a competitors location within the past week.
TARGETED AD
NEWSLY
NEWSLY
NEWSLY
When the consumer receives advertising that will
guide them to make smart shopping decisions,
they will be increasingly loyal and valuable to
the brand. For instance, Amazon can deliver
different marketing messages to users based on
their persona. Amazon mobile app users with a
College Student persona are ages 18-23 who
often visit a college campus and spend time in
college related venues. App users with a Traveler
persona visit airports, hotels and train stations.
Amazon can feature products based on users
personas. College Students see highlighted text
book products and Travelers see highlighted
travel book products.
This gives publishers a huge opportunity to create
engaging content that their users will click and
share. This engagement makes persona-savvy
publishers more effective businesses.
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A highly engaged audience means more ad impressions to serve, and a highly segmented audience is an opportunity to monetize with targeted advertising.
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Case Study: CardStarCardStar is a mobile app where users store all
of their loyalty cards and receive targeted offers.
The app uses Skyhooks Infinite Geofencing
to improve user experience and increase the
relevance of offers by monitoring for nearby
stores even when the app is backgrounded.
CardStars UI brings loyalty cards from nearby
stores straight to the home screen for easy
accessibility, and the app is able to preload
offers so that they can be delivered to busy
consumers in real time. This is an example
of geo-targeting at scale and driving offline
conversions.
Cardstars implementation of Infinite
Geofencing increases user engagement,
resulting in a significant lift in average session
length, an increase in daily active users and
growth in sessions per day. Now more users
open the CardStar app more often and spend
more time engaging with it. The geofences
around the stores can show whether the offers
on the CardStar app are driving conversions.
These unique capabilities offer a monetization
path for CardStar and similar deals and
loyalty applications in the form of hyperlocal
advertising with sponsored offers.
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Geofencing gives insight on new attribution metrics such as billboard conversion rates,
digital to foot traffic conversion rates and vice versa, enabling ad networks to take credit for
cross-channel conversions. This full picture of ROI allows ad networks to understand where
impressions are coming from in different channels and how those impressions are driving
traffic to stores and online. Mobile location and geofencing technology radically extends the
reach of mobile targeting and visibility into ad conversions.
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Mobile phones are central to the shopping process and consumers expect to be able to find and access local opportunities at the touch of a button. This enhanced version of CardStar gives users that experience with built-in shopping lists and location-aware services that serve up nearby shops and offers.
Andy Miller, Chief Innovation Architect, Constant Contact
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Skyhook is the worldwide leader in location positioning, context and intelligence.
In 2003, Skyhook pioneered the development of the Wi-Fi Positioning System to provide
precise and reliable location results in urban areas. Today, Skyhooks Precision Location
provides positioning to tens of millions of consumer mobile devices and applications.
FOR MORE INFORMATION, VISIT: WWW.SKYHOOKWIRELESS.COM
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CONCLUSION
People pay attention to advertising only when it is helpful and interesting to them. In order to find out what content will impact a consumers purchasing decisions, advertisers must get to know their audiences on a personal level. With location technology, advertisers can target and reach their audiences based on where they are, where they have been, and where they are going. Building personas and venue profiles enables publishers to customize content and speak directly to the lifestyle of their audiences. Doing so ensures that their content resonates on a personal level, increasing ad inventory size and value, leading to greater profitability for the whole ad ecosystem.