hyperlocal targeting on the mobile platform (street fight summit west 2013)
DESCRIPTION
Results from a new white paper from Street Fight Insights, sponsored by Moasis Global, that analyzes the effectiveness of new and old ways of targeting consumers through their mobile devices. From Steven Jacobs, Deputy Editor, Street FightTRANSCRIPT
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HYPERLOCAL TARGETING ON THE MOBILE
PLATFORMSteven Jacobs | Deputy editor | Street Fighte: [email protected] | t: @stevenhjacobs
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The report…• Why we created the report
– Gap between brand awareness and existing technologies on mobile
• What the report accomplishes– Examines today’s tools and techniques that use
location data to help marketers reach the right consumers, at the right place, and in the right context
• Our methodology:– Interviewed 20+ executives at hyperlocal
marketing vendors, brands and agencies– Surveyed existing industry research and data
STREET FIGHT
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Here’s what we found…
1) Industry is set to see rapid growth2) Hyperlocal targeting is not a commodity3) Data quality remains an issue4) Poor ROI metrics holding back investment5) Big brands are getting into the game
STREET FIGHT
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1) Industry is set to see rapid growth...
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Jan-
11
Mar
-11
May
-11
Jul-1
1
Sep-
11
Nov-1
1
Jan-
12
Mar
-12
May
-12
Jul-1
2
Sep-
12
Nov-1
2
Jan-
130.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Smartphone marketshare
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on
sSMARTPHONE ADOPTION IS NEARLY UBIQUITOUS…
As of September 2012, More than half of mobile subscribers own smartphones
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PLATFORM USECASE ADOPTION
Source: “Smartphone Subscriber Marketshare,” comScore, February 2013.
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THERE ARE MORE LOCATION-BASED MOBILE APPS THAN EVER…
1/3
PLATFORM USECASE ADOPTION
of the 45 billion applications downloaded from Apple’s AppStore uses location
STREET FIGHTSTREET FIGHT Source: “Unique in the Crowd: The privacy bounds of human mobility,” Nature, March 2013.
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Geosocial services Location based information services
12%
55%
18%
74%
May 2011 Feb 2012
Percentage of mobile users
MORE CONSUMERS USE LOCATION SERVICES ON THEIR MOBILE DEVICES…
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+19%
+6%
PLATFORM USECASE ADOPTION
Source: “Three—quarters of smartphone owners use location—based services,” Pew Internet, May 2012.
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2) Hyperlocal targeting is not a commodity…
![Page 9: Hyperlocal Targeting on the Mobile Platform (Street Fight Summit West 2013)](https://reader037.vdocuments.site/reader037/viewer/2022110303/54b7ae1c4a7959b26b8b45a1/html5/thumbnails/9.jpg)
THERE’S MORE THAN ONE WAY TO DETERMINE A USER’S LOCATION…
Smartphone
Passive Opt-In
IP-Targeting User reported Cellular Wi-fi GPS
Lat/LongZip Code, DMA, City, State
Location Data
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POSITIONING TARGETING
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POSITIONING TARGETING
Geo-fecning: An algorithm that’s used to deliver content to mobile users within a geo- graphic area.
Ring-fencing: A form of geo-fencing that delivers content to mobile users within a certain radius of a specified location..
Place targeting: A form of geo-fencing that delivers content to mobile users at a specific venue such as a sports arena or store.
Grid-fencing: A grid of hexagonal or square geo- fences, often called tiles.
HYPERLOCAL TARGETING IS NOT A COMMODITY…
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MOVING BEYOND THE GEO-FENCE
POSITIONING TARGETING
Golf course on Tuesday
Prada store on Thursday
Football stadium on Sunday
Device profiling: A form of targeting that delivers content to users based on their mobile device’s unique identifier.
• In hyperlocal, vendors can record a device’s locations and then use the data to deliver a marketing message to the same phone or tablet at a later date.
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Device profiling uses location as a real-world cookie…
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3) Data quality remains an issue…
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DIRTY DATALots of inaccurate location information…
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“We filter 70% of the hyperlocal impressions that come through mobile advertising exchanges.”- David Petersen, Sense Networks
• Some publishers have started to aggressively embellish the location information they pass on to advertisers.
37.6922° N, 97.3372° W
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4) Poor ROI metrics holding back investment…
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ONLINE-TO-OFFLINE CONVERSIONSMeasuring ROI is still an obstacle…
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26% of mobile users who search for local information make a purchase in-store
Source: “Our Mobile Planet,” Google, January 2013
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5) Big brands are getting into the game …
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MOBILE + LOCALMobile marketers are investing in local targeting…
2012 2013 2014 2015 2016 2017
$1.20 $2.30 $3.90
$5.70 $7.20
$9.09
$2.03 $3.09
$4.77
$5.83
$6.86
$7.70
Non-location targeted Location targeted
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“More than half of mobile spend will go to location-targeted ads by 2016…“
Source: “BIA/Kelsey’s Annual U.S. Local Media Forecast, 2012—2016,” BIA/Kelsey, March 2013.
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Get a copy of the full white paper:
It’s time to bridge the knowledge gap and discover vastly improved ROI.
Hyperlocal Targeting on the Mobile Platform
www.streetfightmag.com/reports
Steven Jacobs [email protected]