mima minneapolis 2014 the future of mobile

1

2014 MIMA CONFERENCE

YOUR MOBILE DEVICE IS HERE

44.9727466, -93.2738237

THE FUTURE OF MOBILE

2

BEACON DEMONSTRATION

1. Go to the following url:http

://tinyurl.com/lqk9npu

2. Click on the ad

3. Tap to add to passbook

4. Make sure Bluetooth is turned on

Or, follow @DanielMaxwell on twitter

and link from there

3

The Mall of America in Bloomington, MN (44.854865,-93.242215) is the largest mall in the US and is equal in size to:

A. 95 Olympic-Size Swimming Pools

B. 25,243 African Elephants

C. 78 Football Fields

4

A. 95 Olympic-Size Swimming Pools

B. 25,243 African Elephants

C. 78 Football Fields

The Mall of America in Bloomington, MN (44.854865,-93.242215) is the largest mall in the US and is equal in size to:

5

VERVE MOBILE – MOBILE TRENDS

+ IT IS A MOBILE WORLD!

+ BIG DATA

+ PROGRAMMATIC / XP

+ ATTRIBUTION

MIMA CONFERENCE 2014

6

STEPPING BACK:IT’S A MOBILE WORLD

TELEVISION

1939

PERSONAL COMPUTER

1973

GAMING CONSOLE

1972

TABLET

2010

PROJECTED 2014 GLOBAL SHIPMENTS

TVS

240MM

42MM

PCS

333 MM SMARTPHONES

919MM

TABLETS

190 MM

SMARTPHONES ARE THE NEW PERSONAL COMPUTER

GAMING CONSOLES

SMARTPHONE

2007

7

SMARTPHONE SALES

8

Q4 2009

Q4 2010

Q4 2011

Q4 2012

Q4 2013

0 50 100 150 200 250 300 350

Global Smartphone Quarterly Units Shipped (MM)

Global Smartphone Quarterly Units Shipped (MM)

SOURCE: Morgan Stanley Research

TABLETS

CONSUMERS ARE RELIANT ON MOBILE DEVICES

9

61%Penetration

6% in 2008

VS.

40%Penetration

VS. 0% in 2009

SMARTPHONES

FASTEST GROWING PRODUCT IN HISTORY

TABLET SALES GROWING FASTER THAN PC SALES

10

Q1 2009 Q1 2011 Q1 20130

20

40

60

80

100

120

Global Units Shipped (MMs) Desktop Global Units Shipped (MMs) TabletSOURCE: Morgan Stanley Research

AMERICAN’S SPEND 2 HOURS A DAY ONLINE WITH A SMARTPHONE

11

Live TVRadioSmartphoneInternet on a PCTimeshifted TVGame ConsoleDVDMultimedia Device

SOURCE: NIELSEN Q4 2014

12

MOBILE MEDIA CONSUMPTION

Print Radio TV Internet Mobile0

20

40

60

80

100

120

140

160

3344

8170

145

Time Spent

Mins A Day

SOURCE: Small business Yahoo: Mobile: The Future of Local Search. 2/25/2014 

13

MOBILE USAGE: 160 TIMES A DAY

6:35 AMTrack news and traffic conditions

2:31 PMHow is the market doing?

5:25 PMWho’s playing tonight?

7:45 PMCheck social media feeds

Check the news while watching TV

9:18 PM

SOURCE: Journal Personal Computing / Helsinki Institute Information Technology

CONSUMERS EVEN WATCH TV CONTENT ON MOBILE

14

MOBILE DEVICE

4%

CIRCA 1950

TV SET (LIVE)

100% OF VIEWING

CIRCA 2014

COMPUTER

6%TV SET (LIVE)

57%

SOURCE: Horowitz Associates, State of Cable and Digital Media Report, 4/14

US TIME SPENT VS. MEDIA SPEND

TV Mobile Online Radio Print Other$0

$10,000,000,000

$20,000,000,000

$30,000,000,000

$40,000,000,000

$50,000,000,000

$60,000,000,000

$70,000,000,000

0%

5%

10%

15%

20%

25%

30%

35%

40%

Ad Spend (Billions) Time Spent

Ad

Spen

d (b

illio

ns)

Tim

e Sp

ent

SOURCE: Advertising spend based on IAB data for full 2013

PROJECTED GLOBAL MOBILE AD $s

16SOURCE: eMarketer: Mobile Internet Ad Spending Worldwide

2012 2013 2014 2015 2016 2017 20180

10

20

30

40

50

60

70

80

90

100

Mobile Internet Ad Spend

Bil

lio

ns

17

IN THE NOW:BIG DATA

AS COMPELLING A SIGNAL AS ANY THAT HAVE COME BEFORE, LOCATION DATA GIVES A NEW 360° VIEW OF THE CONSUMER – WHERE THEY GO, WHAT THEY DO, WHAT THEY LIKE AND WHO THEY ARE.

18

QSR2:15 PM40.76163,-73.96818

GRAMMAR SCHOOL9:30 AM40.76357,-73.96359

CHILDREN’S APPAREL STORE12:05 PM40.76291,-73.96516

PLAYGROUND2:47 PM

40.7660479,-73.9645556

19

PATH TO PURCHASETARGETED ADVERTISING

PURCHASE LOCATION3:32 PM40.75462,-74.00491

PROXIMITYTARGETING

AUDIENCETARGETINGMom With Children In Household

AUDIENCE RETARGETING

PATHANALYSISInsights and Attribution

*For illustrative purposes only. Verve utilizes substantially more datapoints and 3 rd party data to calculate actual proximity, audience segments and sales analysis.

VERVE DRIVES CONSUMERS TO POINT OF PURCHASE TO BUY PRODUCT…AND PROVES IT

COMPETITOR LOCATION4:55 PM40.7621749,-73.9728615

ONLINE DESKTOP PROFILESDAY 1 DAY 2 DAY 3 DAY 4 DAY 5

20

CONSUMER JOURNEY: BEFORE

NBCSPORTS YELP TWITTER BUZZFEEDYOUTUBE

FACEBOOK NETFLIX PINTERESTYAHOOSPORTSIMDB

NY TIMES ESPN CNN THE ECONOMISTTUMBLR

FORBES THE NEW YORKER NY TIMES GOODREADSCBS

SPORTS

MOBILE HAS CHANGED THE GAME

+You and only you use your mobile phone

+Your mobile phone is always with you

21

MIMA CONFERENCE 2014

HOTEL10:15 AM

40.76163,-73.96818

CONVENTION CENTER1:15 PM

40.76357,-73.96359

RESTAURANT12:05 PM

40.76291,-73.96516

OFFICE BUILDING3:32 PM

40.75462,-74.00491

22

BUSINESS TRAVELERCONSUMER JOURNEY: AFTER

CHICAGO O’HARE AIRPORT

6:00 AM41.974162,-87.907321

JFK INTERNATIONALAIRPORT

8:45 AM35.9350121,-75.6014349

Mobile devices allow us to understand the consumer like no other medium – You are what you do and where you go

23

Verve’s VLS™ technology consumes, analyzes and weights the following factors/data to create the most verifiable and precisely-targetable audience segments available:

DEVICE LOCATION PATTERNS / PATHS

Using 1st party data Verve collects device activity/movement, providing insights into the consumer’s journey.

HOUSEHOLD-LEVEL DEVICE MATCHING: DEMOGRAPHICS

Device-to-Home matching connects demographic data to 50MM mobile devices.

HOUSEHOLD-LEVEL DEVICE MATCHING: TRANSACTIONAL

Device-to-Home matching connects transaction and purchase data to 50MM mobile devices.

CUSTOMCONSUMERSEGMENT

PLACEANALYSIS

Analysis of areas that show high propensity for target prospects.

PEOPLE TARGETING

METHODOLOGY

24

COLLEGESTUDENT

0e1034bd-f780-4f3a-b2ac-b9a9b3fee775ANON. ID

CURRENT LOCATION41.8844, -87.6258Starbucks

HOME LOCATION38.9990, -77.1604

WORK LOCATION38.9526, -77.1307

OTHER SEGMENTSMillennials Movie Goer

RECENTLY VISITEDTargetGapDunkin’ DonutsExpress

IDENTIFYING HOME LOCATIONVERVE CONSUMER SEGMENTS

25

BUT WAIT…THERE’S MORE!

HIGH TRAFFIC AREAS FOR TOYOTA CONSUMERSMAP-BASED INSIGHTS: CONSUMER TRAFFIC HEAT MAP

26

Lowest traffic activity for your consumers

Medium-high traffic activity for your consumers

Highest traffic activity for your consumers

Medium traffic activity for your consumers

Competitor Locations

Your Locations

HIGH TRAFFIC AREAS FOR HONDA CONSUMERSMAP-BASED INSIGHTS: CONSUMER TRAFFIC HEAT MAP – COMPETITOR

27

Lowest traffic activity for Competitor consumers

Medium-high traffic activity for Competitor consumers

Highest traffic activity for Competitor consumers

Medium traffic activity for Competitor consumers

Competitor Locations

Your Locations

CONSUMER HABITS FOR TOYOTA SHOPPERS: COMPETITOR LOCATIONS

VERVE’S PRE-PATH ANALYSIS

28

AutoZone

Nissan

Chrysler

Honda

Volkswagen

Hyundai

Subaru

Kia

Acura

15x

42x

55x

78x

84x

95x

112x

126x

294x

Relative Visitation

+ Insights

PRE AND POST VISIT

29

Simon Malls

Wells Fargo Bank

Duane Reade

Honda

Walgreens

Acura

Subaru

Sally Beauty Supply

Burger King

Chrysler

Volkswagen

The Little Gym

The Home Depot

Kia

AutoZone

Hyundai

-1 2 0 0 -1 1 0 0 -1 0 0 0 -9 0 0 -8 0 0 -7 0 0 -6 0 0 -5 0 0 -4 0 0 -3 0 0 -2 0 0 -1 0 0 0 1 0 0 2 0 0 3 0 0 4 0 0 5 0 0 6 0 0 7 0 0 8 0 0 9 0 0 1 0 0 0 1 1 0 0 1 2 0 0

Post VisitPre Visit

PRE AND POST VISIT

Chart depicts the relative volume of consumers visiting other locations 1 hour before and 1 hour after..

Toyota

30

AND WE’RE JUST SCRATCHING THE SURFACE!

LOOKING FORWARD:PROGRAMMATIC / XP

31

HAND IN HAND

+ Programmatic platforms have been primarily focused on “cookie based” buying with the following goals:

+ Greater efficiency – cross buy frequency capping+ Reduced cost + More control

+ Cross platform buys aim to reach the consumer across multiple mediums with the following advantages:

+ Greater share of voice at an individual consumer level+ Relevant advertising based on the medium “mindset”+ Greater efficiency - Cross platform frequency capping

32

PROGRAMMATIC / XP

CHALLENGES

+ However, there are challenges that remain to be solved:+ Display advertising = cookies+ Mobile app advertising = Device IDs+ Android mobile web = cookies+ iOS mobile web = no cookies

+ Most DMPs and DSPs have no concept of a device ID + DSPs are set up to optimize around cookie buying and

click or conversion goals

Mobile campaigns target based on location and place value on secondary actions and real world behaviors

33

PROGRAMMATIC / XP

LOOKING FORWARD:ATTRIBUTION

34

CLOSING THE LOOP

THERE ARE SEVERAL METHODS FOR ATTRIBUTION AVAILABLE IN MOBILE:

35

MOBILE ATTRIBUTION

SKU Level - Shopper Loyalty Panel

FOOT TRAFFIC

Geo-Panel

Impression Attribution

App Panel

PURCHASE BASED

Retail Level – Credit Card

Product Level – Scanner Panel

HOW IT WORKSFOOT TRAFFIC INSIGHTS

36

Other locations

Your location

HOW IT WORKS

Your campaign launches. There will be consumers who see an ad and others who do not.

Exposed to the campaign*

Control*

*Exposed and Control groups determined post-campaign (not pre-selected). Campaign reach not impacted. Campaign served in full and without prejudice.

HOW IT WORKSFOOT TRAFFIC INSIGHTS

37

HOW IT WORKS

We measure who goes toyour location.

Other locations

Your location

Exposed to the campaign*

Control*

*Exposed and Control groups determined post-campaign (not pre-selected). Campaign reach not impacted. Campaign served in full and without prejudice.

HOW IT WORKS

HOW IT WORKS

We measure who goes toyour location and where else they go.

38

THE CONSUMER PATH

Other locations

Your location

Visited your location

Did not visit your location

CAMPAIGN EXPOSURE QUADRUPLED FOOT TRAFFIC PERFORMANCE INSIGHTS: TRAFFIC & FREQUENCY RESULTS

Consumers exposed to the campaign were almost 300% more likely to visit locations than those who were unexposed.

Index* % Foot Traffic Lift

FOOT TRAFFIC LIFT 395 295%

FREQUENCYLIFT 232 132%

39

LEVERAGE GEO-CONQUESTING TO DRIVE FOOT TRAFFIC

100 150 200 250 300 350 400100

200

300

400

500

600

700

800

Frequency Index

Tra

ffic

Ind

ex

Retargeting

Geo-Fencing LocationsGeo-Conquesting

PERFORMANCE INSIGHTS: FTI BY TARGETING TACTIC

40

TARGET SMALL DMAS TO MAXIMIZE FOOT TRAFFIC LIFT

100 120 140 160 180 200 220 240 260 280100

150

200

250

300

350

400

450

500

Small DMAs

Medium DMAs

Large DMAs

Frequency Index

Tra

ffic

Ind

exPERFORMANCE INSIGHTS: FTI BY DMA

41

VERVE PURCHASE BASED SEGMENTS & ATTRIBUTION

42

METHODOLOGY:

2

NCS HH DATABASE

VERVE PURCHASE

BASED SEGMENTVERVE / NCS COMBINED

VERVE HH MATCHING

DEVICE USER PROFILE

(50+ MILLION HHs)

DEVICE GPS

COORDINATES

TARGETED MEDIA TO PURCHASE

SEGMENT

CUSTOMERPURCHASES

NCSSHOPPER

DATA

ROIINCREASED

SALES

1

43

AND NOW WE CAN GET EVEN MORE GRANULAR

WHAT ARE BEACONS:

44

45

WRONG, WRONG, WRONG!!!

BEACONS CANNOT:

Track your location

“Tell” advertisers (or anyone else anything)

Identify your smartphone

Identify who you are

Track your every move

46

Beacons

A “DUMB” DEVICE

47

Beacons

Think of a beacon as a dog whistle:+ Emits a signal+ Can be listened for by certain

devices/apps+ Apps can be programmed to perform an

action when in proximity to a beacon+ POS Advertising+ Attribution!

BEACON AVAILABILITY

+ All iPhones since the 4S (and Macs, iPods, iPads)

+ High-end Android devices since 2013, Android version 4.3+ (13.1% in March 2014)

+ Range of 50 to 150 feet

+ Hardware either battery or USB powered

+ Beacon prices range from $5 to $40

48

49

iBeacon: Apple’s standard, supported in iOS 7+ Ubiquitous+ Simple+ Immediate deployment with Passbook

Gimbal: Qualcomm’s standard, requires SDK+ Management, deployment tools+ Secure: permissions control visibility+ Dual-mode support for iBeacon

BEACON PROTOCOLS

HOW IT WORKS

50

1

2 3

Person near the location (lat / long) sees offer on their iPhone

While in the location, theBeacon triggers the offer to display Guest redeems

offer-based messages

SAVE 10%

BEACONS

51

BEACON DEMONSTRATION

1. Go to the following url: http://tinyurl.com/lqk9npu

2. Click on the ad

3. Tap to add to passbook

4. Make sure bluetooth is turned on

BENEFITS

52

OFFERS+ Beacons trigger contextually relevant offers+ Impact consumer behavior at/close to the point of sale

CREATE LOYALTY SEGMENTS TO RETARGET+ Create Best Western segments and retarget them

PATH INTELLIGENCE+ Leverage consumer path knowledge in marketing

ATTRIBUTION+ Measure the impact of advertising efforts

53

US PROXIMITY MOBILE PAYMENT TRANSACTION VALUE 2012-2017

2012 2013 2014 2015 2016 20170

10

20

30

40

50

60

-0.4

0.1

0.6

1.1

1.6

2.1

2.6

3.1

$0.54 $1.04 $2.59

$9.69

$26.45

$58.42

93.4%

148.6%

273.8%

173.0%

120.8%

Proximity Mobile Payment Transaction Value % Change

SOURCE: eMarketer, July 2013

Note: Point-of-sale transactions made by using a mobile device as a payment method; includes scanning, tapping, swiping or checking in with a mobile device at the point of sale to complete transaction.

54

SINGLE-SOURCE CLOSED LOOP ATTRIBUTION

Served an Ad on Mobile

Purchase Made Using Mobile Wallet

Direct Attribution

MOBILE WALLET

Follow the Path to Purchase

AD

3

21

4

THE END

55