the top 3 location-based advertising insights across retail, qsr and auto

March 18, 2014!

The Top 3 Location-Based Advertising Insights Across Retail, QSR and Auto!

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M!A!M!Webinar Series!

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About the MMA !

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!The MMA location committee was established to give advertisers and their agency and media partners the confidence to invest their ad dollars into a growing new category of mobile ad products and services. This webinar is being produced by the Advertising Working Group of this committee and is meant to provide key insights into the ad strategies and tactics working for some of the top mobile advertising categories in mobile-location today: Retail, Restaurants and Automotive.!

Overview!

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•  " Location: the unique to mobile opportunity!!•  " Common Location Terminology !

"!•  " Top Tactics by Category!

"!•  " Client Case Studies by Category!!•  " Q&A!

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Today’s Agenda!

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Moderator!

Presenters!Monica Ho!SVP, Marketing!MMA Location Committee [email protected]!!

James Smith!Chief Revenue Officer!MMA Location Advertising, Working Group [email protected]!!

Leo Scullin!Head of Global Industry Initiatives!Mobile Marketing Association!

Heather Sears!Executive Director, Marketing!MMA Location Advertising Committee Member!YP [email protected]!!!

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Managing Your Questions!

Share the Insights!#MMAWeb!

LOCATION: THE UNIQUE TO MOBILE OPPORTUNITY

16%

Mobile As a % of Online Sales

Source: IBM, Q4 2013

77% 20%

Where Was Purchase Completed

In Person Online

Source: xAd/Telmetrics Mobile Path to Purchase Study Commissioned by Nielsen, 2013

• Today nearly 70% of smartphone access is spent out of the home or on-the-go

• As a result, in addition to driving online actions – mobile impacts offline activities as well

26%

18%

13%

12%

11%

10%

6%4%

TOP INDUSTRIES FOR LOCATION-BASED ADVERTISING

RETAIL 26% AUTO 18% QSR/RESTAURANTS 12%

Retail Auto CE/Tech Restaurants CPG Finance / Insurance Telecom

Travel

IN MOBILE - IMMEDIACY OF NEED VARIES BY CATEGORY

Source: xAd/Telmetrics Mobile Path to Purchase Study commissioned by Nielsen: Understanding Mobile’s Role in the Consumer Path to Purchase - 2013

89%

59% 55%

Restaurant Retail Automotive

Immediacy of Consumer Need

Within the day Within the month Month +

AS A RESULT, SO DO CONSUMER EXPECTATIONS

65% 57% 53%

0%

10%

20%

30%

40%

50%

60%

70%

Restaurant Retail Automotive

Looking For Businesses Within 5 Miles of Their Location

Source: xAd/Telmetrics Mobile Path to Purchase Study commissioned by Nielsen: Understanding Mobile’s Role in the Consumer Path to Purchase - 2013

KEY INSIGHT IMMEDIACY OF NEED DRIVES IMPORTANCE OF PROXIMITY

IMMEDIACY OF NEED

IMPORTANCE OF PROXIMITY

high

low

high

low

RESTAURANTS

RETAIL

AUTO

•  Geo-Fencing

•  Identifies a point of interest on a map and establishes a

radius around it for targeting purposes.

•  Geo-Conquesting

•  Uses location data to identify a brand’s competitors in an

effort to promote a competing or competitive offering to

their customers.

•  Geo-Behavioral/Location-Based Audiences

•  The ability to target unique audiences and/or users based

on the context of a given location, past or present location

behaviors etc.

•  Retargeting

•  Re-messaging to users based on past offline and online

visitation behaviors

MOBILE ADVERTISING��MORE THAN JUST PROXIMITY TARGETING

hJp://www.mmaglobal.com/ locaOon-‐terminology-‐guide

TOP GOALS: QSR / RESTUARANTS

Drive foot traffic away from competitors’ and into their stores

Increase foot traffic during key times of day / day of week

Increase awareness of new offerings / special offers

GEO-CONQUESTING Reach consumers in and near competitor stores

GEO-FENCING Reach consumers near your location

RETARGETING Reach consumers after they visit

AUDIENCE TARGETING Target custom audiences based on activity in the physical world

MOBILE COUPONS Variety of executions QSR

CATEGORY

QSR / RESTAURANT TACTICS"

1.  Proximity is a key relevance driver

2.  Timing is Everything

3.  Creative – Keep it simple

4.  Plan for metrics that matter

TOP QSR INSIGHTS

1. PROXIMITY MATTERS

Nearly 7 out of 10 mobile restaurant users look up a business location and/or map and driving directions Source: xAd/Telmetrics Mobile Path to Purchase Study - Restaurants

Location Targeting is Essential

Leverage geo-precise targeting capabilities to reach consumers when they are near your / or your competitors locations

Most Popular Targeting Tactics

•  Geo-Fencing — Reach and engage customers around your own QSR

locations

•  Geo-Conquesting — Reach and engage customers around your competitors

locations

Immediate Proximity, 64%

No Proximity Expectation, 36%

Location Expectations When Searching for a

Restaurant on Mobile

2. TIMING IS EVERYTHING

Over 60% of mobile restaurant users look to make a purchase within the hour Source: xAd/Telmetrics Mobile Path to Purchase Study - Restaurants

Marry Immediacy with Context

•  Time of Day and Day of Week targeted campaigns satisfy both convenience and user intent

•  Don’t assume consumers will remember your breakfast ad if served during the lunch hour

Immediatley, 30%

Within Hour, 34%

Within day, 25%

Within Month, 7%

[SERIES NAME], 3%

Immediacy of Consumer Need

3. KEEP IT SIMPLE

19 Source: xAd/Telmetrics Mobile Path to Purchase Study - Restaurants

Fancy, Fluffy Ad Creative is Seldom “Quick”

•  QSR ad creative should include location, deal or offer, and a direct call to action

•  Ads direct to landing pages with nearest location information and preferred actions such as map & driving directions

Decisions are made quickly. Make sure every second counts by providing users quick access to the information they need.

78%

65%

48%

27%

Food Type Location / Proximity

Price Reviews

Top Reasons for QSR Selection

4. PLAN FOR METRICS THAT MATTER

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Mobile makes fast food FASTER, revealing user preference in secondary actions that drive offline conversion

Top Mobile Secondary Actions: QSR!Measure Success of Intention-Driven Activities

•  Clicks/CTR mean nothing when it comes to mobile restaurant user intent

•  Plan and optimize based on QSR user action of choice – Map & Driving Direction or Actual In-Store Visits

Source: xAd Network Data

CASE STUDIES •  Pinkberry •  Quiznos

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GOAL: Drive foot traffic into Pinkberry stores and generate awareness of current promotional offers to try the new Pinkberry greek yogurt.

SOLUTION: Leverage geo-fencing combined with an audience target to reach Pinkberry’s Ideal audience.

RESULTS The campaign doubled Pinkberry's performance benchmark

CLIENT SUCCESS STORY: PINKBERRY

SUCCESS STORY: QUIZNOS

“Must have a testing mentality -- always,” Tim Kraus, Director of Digital Marketing, Quiznos.

Quiznos has been testing with Sense Networks/YP since 2012 over several campaigns to learn what works best in their business.

Targeting: •  San Francisco, Madison, Seattle test markets •  Competitors’ customers (Subway, McDonald’s, Wendy’s)

•  Within 10 miles of locations

Results: • 6% lift in sales over national average

Source: YP/Sense Networks hJp://naOonal.yp.com/mobile

RETAIL

Drive Foot Traffic into Stores

Special Sales or Promotions

Market Focused Media Heavy-Ups Support Store Openings

TOP GOALS: RETAIL

GEO-CONQUESTING Reach consumers in and near competitor stores

GEO-FENCING Reach consumers near your retail location

RETARGETING Reach consumers after they visit retailers

AUDIENCE TARGETING Target custom audiences based on activity in the physical world

MOBILE COUPONS Variety of executions

RETAIL CATEGORY

RETAIL TACTICS

1.  Geo-Fencing Might be Too Late

2.  Sometimes Location Doesn’t Matter…

3.  Target People, Not Places

4.  *Bonus Insight* Get Smart about Mobile Coupons

RETAIL INSIGHTS

70% of purchases are planned. Shopping decisions can be better impacted by reaching shoppers in advance of going to a store.

1. GEO-FENCING MIGHT BE TOO LATE

1. Here’s a consumer who goes to Lowe’s

2. Here are 15 more opportunities to reach him.

Lowe’s


2. SOMETIMES LOCATION DOESN’T MATTER...

Distance to Store

CTR

< .5 mi 0.77%

.5-1 mi. 0.79%

1-3 mi. 0.80%

3-5 mi. 0.78%

5-8 mi. 0.80%

8-10 mi. 0.79%

10+ mi. 0.80%

Contrary to popular belief, there is not always a relationship between real-time distance to retail store and clicks.

Red= campaigns, series A Blue = campaigns, series B Source: YP/Sense Networks

hJp://naOonal.yp.com/mobile

… AT LEAST NOT HOW YOU THINK…

Home/work location and attributes extracted from location data can drive greater lift in results.

Especially for national brands with many well-known locations in a metro area other targeting will have a greater impact on response than being “1 mile from a retail store.”

0

1

2

3

4

5

Real Time Location

Behavior Demos Home Location

Group A

Group B

Group C

Sample CTR Lift Multiple


“Groupon” Model •  Deal Oriented •  Hyper-Local •  Banner states Distance to Retailer

Brand Retailer •  Generic banner •  No deal * Have observed lack of correlation of Distance to CTR

Correlation CTR- Distance to Store

… NEED TO INVESTIGATE TO UNDERSTAND DRIVERS

If there's no deal, people who are frequently in close proximity to a brand or establishment can be less interested in the ad.

Level of Correlation


3. TARGET PEOPLE, NOT JUST PLACES

Location-powered audience profiles deliver a 3-5x lift !over simple geo-fencing for retail brands. !

YPmobile Targeting !Customer Information !

Works: Midtown Manhattan!Lives: Garden City, NYShops at: Costco, Macy’s!Age: 35-44!Income: $150k+!Travels for business!

YPmobile Targeting !Customer Information !

Works: Minneapolis, MN!Lives: St. Paul, MN!Shops: Quiznos, Target!Age: 25-29!Income: $50-75k+!Interests: Concerts!

Works: Unknown "Lives: Unknown "Shops: Unknown "Age: Unknown "Income: Unknown "Interests: Unknown "

Traditional Location Targeting Customer Information!


•  Use location to geo-conquest competitors’ shoppers

•  Hyper-target with exclusive coupons per competitor

•  Give shoppers control; save coupons to phone screen

•  Measure multiple levels of action

4. GET SMART ABOUT MOBILE COUPONS

Measure secondary ~20% save to phone

Measure Coupons ~2% redeemed

Measure Store Visits

~6% visited store

Vs. Beauty Competitor:

Vs. Fashion Competitor:

Vs. Home/ Cookware Competitor:

~Measure Cost Per Store Visit

~$5


CASE STUDIES •  Columbia •  Vespa / Moto Guzzi

SUCCESS STORY: COLUMBIA

Campaign Goals: To increase awareness around Columbia’s Omni-Heat jacket and incent mobile users to come in-store to try it on

Solution: •  Users were targeted in and around locations offering the

new Omni-Heat jacket with a location-aware message

•  Post click, users were taken to a custom landing page showing contact details for the nearest store location and a special offer

Results: •  CTR was 52% above the industry average •  Driving directions and an exclusive offer that could be

redeemed at retail locations were the highest secondary actions

Targeting: •  Retargeted Vespa and Moto Guzzi shoppers •  Motorcycle enthusiasts •  Demographics (high HHI)

Results: •  Banner CTR: 0.75% •  ~4x lift over untargeted •  Interstitial CTR: 2.33% •  9% of clicks visited the dealer

SUCCESS STORY: VESPA/MOTO GUZZI

“This was not even an exercise in branding, but an exercise in sales,” Melissa MacCaull, VP of marketing at Piaggio Group America.

“The campaign had the highest click-through rates of any other aspect of the program, including search and online display.” Read more: http://www.mediapost.com/publications/article/209818/vespa-retargets-dealer-visitors-to-move-buyers-dow.html

AUTO MOBILE CAN KICK START THE AUTO SHOPPING PROCESS

ADVERTISING OBJECTIVES FOR AUTO VARY BY “TIER”

Auto mobile strategy varies depending on funding source:

TIER 1: NATIONAL/BRANDING Objective: Increase awareness and shift consideration

TIER 2: REGIONAL DEALER GROUPS Drive qualified leads and promote regional incentives

TIER 3: LOCAL DEALER Reach in-market shoppers and drive foot traffic to individual dealerships

GEO-CONQUESTING Reach consumers visiting competitor lots.

GEO-FENCING Reach consumers near dealership: fencing proximity based on machine learnings.

RETARGETING Reach consumers after they visit lot or competitor dealerships for 30 days, anytime/anywhere.

AUDIENCE TARGETING Target custom audiences based primarily on a combination of activity in the physical world; and HH matching data.

ZIP+4 CODE TARGETING Target key zip codes for specific Models based on Polk sales data.

AUTO CATEGORY

AUTO OVERALL MOST EFFECTIVE LOCATION TACTICS

BEACON TRIGGERED MESSAGING/OFFERS: Targeted ads integrated into Beacon technology.

HH MATCHING/ “PATH” OVERLAY: Target based on HH to Device matching Auto data and optimize for path to purchase.

“PATH” TARGETING Targeting locations that are seen on path to dealer lots, e.g., relevant Starbucks locations..

AUTO OVERALL GEO-CONQUESTING WORKS

Consumers who are out on dealer lots are at the lowest part of the funnel and seeking deals.

Time Spent: 21 Seconds Expandable Banner: 200 meter Geo-Fence of Owned and Operated Dealerships

Time Spent: 20 Seconds Expandable Banner: Geo-Fencing Competitive Dealer Lots

Expanded Panel Duration (Expandable Banners)

AUTO OVERALL LOCATION AWARE CREATIVE OUTPERFORMS GENERIC CREATIVE

DYNAMIC DISTANCE

DYNAMIC LOCALIZATION

1.8 MILES AWAY!

ACTIONABLE CTA

3.2 MILES

Ads that are dynamic and customized to the user increase CTR by over 60% and eliminate the need for multiple creatives

AUTO OVERALL FOR AUTO, CUSTOM LOCATION-BASE CONSUMER SEGMENTS WORK*

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OUTDOOR ENTHUSIASTS

An auto OEM campaign focusing on off-road vehicles & SUVs performed better using: The Custom Audience Profiles for Outdoor Enthusiast

78% CTR and 134 FTI Index

* Versus Standard Outdoor Content Targeting = .58% CTR and 118 FTI Index

DEVICE BEHAVIORAL PATTERNS/PATHS Seen at state and national parks multiple times a year

HOUSEHOLD-LEVEL DEVICE MATCHING: DEMOGRAPHICS Lives in average to above average HHI neighborhoods in key outdoor DMAS (Denver, Minneapolis, etc)

SOCIAL LOCATION INSIGHTS Lives in areas indexing highly for social posts with keywords such as: Camping Fishing Hiking Etc.

HOUSEHOLD-LEVEL DEVICE MATCHING: TRANSACTIONAL Household purchase history for camping/outdoor gear (fishing poles, merrell shoes, Arcteryx etc)

POI & COMMERCIAL LOCATION ANALYSIS Temporal visits to outdoor themed retailers such as: Cabela's Bass Pro Shop Gander Mountain REI

1.  For all Tiers, location-aware creative outperforms generic/mass creative for ad engagement by over 2x*

2.  For Tier I Consumer Segments utilizing location and audience data combined, outperform all other tactics in terms of ad engagement and foot traffic.

3.  For Tier II and III, Geo-Conquesting is extremely effective at driving ad engagement and foot traffic.

*Avg.: 2.1X ad engagement based on total campaigns, 2013.

AUTO OVERALL TACTICS THAT ARE MOST EFFECTIVE BY TIER/OBJECTIVE

TIER 1: Driving Model Branding

TIER 1: TOP TACTICS THAT WORK

""

!

! Auto Intenders!

Targeting People: Custom Consumer Segments: Target: Soccer Mom’s With Kids in HH 1.  HH to Device Matching

1.  Polk Reg. shows Minivan in garage 2.  3rd Party data shows HH with children under 18 in HH

Targeting Places: Target: Areas where Mom’s with kids frequent: 1. Retailers, e.g., Gapkids 2. POIs: Parks, Playgrounds


Creative That Works: Rich Media experience highlighting the cars features/functions

TIER II: Driving regional brand interest and incentives

Geo-Fencing/Geo-Conquesting: Geo fencing lots and competitive lots.

Zip+ 4 Targeting: Using Polk reg. data, targeting neighborhood blocks that are in top percentages for target prospects based on relevant auto registration data, e.g., own sub-compact over two years old.

Audience Targeting: Using HH matching, Polk data and demographics matching data.


Path Targeting Target using daypart and locations frequently seen prior to lot visits, e.g., Starbucks.

Geo-Retargeting Retarget those on relevant lots in past 30 days.


Creative That Works: Dynamic incentives are most effective: same look/feel (car image) but each regional group can set their offer (expandable or animated) •  1.8% APR financing in Northeast

•  $500 cashback in Midwest

3. Offer Based

1. Map to Nearest Dealer(’s) 2. Get a Quote

GOAL:

Drive leads and dealer quotes to Nissan Tier Two Dealership site for dealer follow-up.

TACTICS THAT WORKED:

ZIP+4 REGISTRATION TARGETING

Target key zip+4s for specific Models based on Polk sales data

•  Customized make/model list based on market

•  Certain markets focused on conquesting specific Nissan competitors if Nissan's brand name (BDI)

was weak but category (CDI) is strong

•  Others reinforced Nissan make/model where brand and category (i.e. Sedan, or SUV) were strong

CUSTOM CONSUMER SEGMENT:

-  Segment based on combination of HH to Device Demo and Polk data matching and activities in

the real world, e.g., visited any auto-lots.

TIER 2 SUCCESS STORY: NISSAN

RESULTS Reduction in CPL by 62% & CPA by 25% year over year

TIER 2 SUCCESS STORY: NISSAN

TIER 3 Driving Traffic to Specific Dealers

MICRO-LOCATION TARGETING* Utilize Passbook enabled offers, activated by Beacons on-lot/premise.

GEO-FENCING/GEO-CONQUESTING Geo-fencing individually owned and operated lots Geo-conquesting all regional competitor lots.


*In test market currently.

TIER 3: CREATIVES THAT WORK

CREATIVE THAT WORKS Very specific to dealer or dealer group and driving traffic (geo-aware/geo-fence) Incentives to come in and visit (passbook)

4. Dynamic Distance to Dealership

1. Mapping 2. Offer Based 3. Incentive-Based

1. Person near the dealership location (lat / long) sees product offer on their iPhone

2. While in the dealer, the iBeacon triggers the offer to display

3. Customer redeems incentive with dealer

FREE GIFT FREE GIFT WITH

A TEST DRIVE FREE GIFT WITH A TEST DRIVE

4. Beacons then provide “micro-location" data that gives dealerships insights into customers and close loop from impression to attribution

TIER 3 MICRO-LOCATION TACTICS THAT WORK

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!•  “Location” doesn’t always mean “local”!

•  Relevance is key to the mobile experience!–  Don’t just stop at targeting --- creative is just as important!

•  Measure beyond the ad click!!!" " " " " " "!

Closing: Key Takeaways!

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