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Advertisers	
  Now	
  Harness	
  the	
  Power	
  of	
  Location-­‐Based	
  Apps	
  
	
  
By:	
  Kyle	
  Nussbaum	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
The	
  popularity	
  of	
  mobile	
  advertising	
  has	
  increased	
  as	
  brands	
  have	
  harnessed	
  the	
  
effectiveness	
  of	
  location-­‐based	
  technology.	
  	
  Before,	
  mobile	
  ads	
  and	
  messaging	
  
functioned	
  like	
  it	
  was	
  on	
  a	
  desktop	
  platform,	
  with	
  banners,	
  overlays	
  and	
  pre-­‐roll	
  
videos	
  that	
  targeted	
  a	
  specific	
  demographic	
  based	
  on	
  tracking	
  measures.	
  	
  Although	
  
the	
  messaging	
  might	
  resonate	
  with	
  the	
  viewer	
  and	
  create	
  awareness,	
  it	
  was	
  not	
  
within	
  moments	
  of	
  making	
  a	
  stop	
  or	
  purchase	
  decision.	
  	
  Now,	
  the	
  way	
  we	
  shop	
  and	
  
awareness	
  of	
  brand	
  activity	
  has	
  changed	
  dramatically	
  and	
  provides	
  a	
  message	
  that	
  
just	
  might	
  resonate	
  based	
  on	
  interests,	
  preferences	
  and	
  apps	
  we	
  regularly	
  use	
  on	
  
devices	
  that	
  we	
  can’t	
  live	
  without.	
  
	
  
In	
  a	
  cluttered	
  market	
  place	
  where	
  multiple	
  advertisers	
  are	
  vying	
  for	
  attention,	
  
location-­‐based	
  advertising	
  through	
  mobile	
  provides	
  a	
  relevant	
  message	
  that	
  offers	
  
value,	
  gives	
  specific	
  directions	
  to	
  obtain	
  it	
  and	
  is	
  convenient	
  for	
  the	
  user	
  based	
  on	
  
proximity	
  to	
  store	
  location	
  through	
  geo-­‐fencing	
  where	
  consumers	
  within	
  a	
  set	
  mile	
  
radius	
  of	
  a	
  location	
  are	
  served.	
  	
  And	
  this	
  is	
  very	
  exciting	
  for	
  the	
  industry.	
  In	
  January,	
  
an	
  IAB	
  study	
  concluded	
  that	
  66%	
  of	
  marketers	
  believed	
  location-­‐based	
  advertising	
  
the	
  most	
  exciting	
  mobile	
  opportunity	
  in	
  2016.	
  
(https://econsultancy.com/blog/67418-­‐what-­‐is-­‐location-­‐based-­‐advertising-­‐why-­‐is-­‐it-­‐
the-­‐next-­‐big-­‐thing/)	
  	
  
The	
  most	
  effective	
  mobile	
  ads	
  in	
  this	
  context	
  are	
  those	
  that	
  provide	
  a	
  specific	
  offer	
  
that	
  will	
  likely	
  propel	
  the	
  viewer	
  to	
  take	
  action.	
  	
  Generic	
  messaging	
  creates	
  
awareness,	
  just	
  as	
  traditional	
  advertising	
  does,	
  but	
  a	
  substantial	
  offer	
  increases	
  
follow-­‐through	
  in	
  that	
  moment	
  since	
  they	
  are	
  in	
  a	
  direct	
  position	
  to	
  make	
  that	
  
decision.	
  
	
  
Initial	
  hic-­‐ups	
  of	
  early	
  location	
  based	
  campaigns	
  have	
  been	
  learned	
  from	
  and	
  better	
  
targeting	
  tactics	
  have	
  been	
  formulated.	
  	
  Early	
  days	
  saw	
  advertisers	
  starting	
  broad,	
  
but	
  as	
  the	
  ability	
  and	
  technology	
  to	
  narrow	
  this	
  focus	
  down	
  to	
  those	
  more	
  likely	
  to	
  
act,	
  ROI,	
  effectiveness	
  and	
  click-­‐thru	
  rates	
  have	
  inevitably	
  increased.	
  
(http://www.adweek.com/news/technology/are-­‐marketers-­‐finally-­‐getting-­‐hang-­‐
location-­‐based-­‐mobile-­‐ads-­‐167212)	
  
	
  
	
  	
  
One	
  such	
  campaign	
  that	
  we	
  executed	
  on	
  behalf	
  of	
  Wendy’s	
  is	
  on	
  the	
  Waze	
  platform,	
  
which	
  bills	
  itself	
  as	
  the	
  world’s	
  largest	
  community-­‐based	
  traffic	
  and	
  navigation	
  app.	
  	
  
A	
  location	
  such	
  as	
  Philadelphia,	
  where	
  this	
  campaign	
  is	
  live,	
  has	
  over	
  450,000	
  
people	
  who	
  use	
  the	
  app	
  on	
  average	
  13.9	
  times	
  a	
  month,	
  and	
  during	
  this	
  time	
  spend	
  
9	
  hours	
  on	
  it	
  while	
  driving.	
  With	
  so	
  many	
  smart	
  phone	
  users	
  that	
  launch	
  these	
  type	
  
of	
  apps	
  that	
  utilize	
  location-­‐based	
  technology,	
  there	
  are	
  plenty	
  of	
  opportunities	
  for	
  
advertisers	
  to	
  reach	
  this	
  audience.	
  	
  When	
  a	
  “Wazer”	
  as	
  the	
  company	
  calls	
  them	
  
drives	
  near	
  a	
  store	
  location,	
  a	
  brand	
  logo	
  will	
  appear	
  and	
  they	
  can	
  click	
  on	
  it	
  for	
  
more	
  information	
  and	
  directions.	
  	
  As	
  noted	
  earlier,	
  having	
  a	
  valuable	
  offer	
  will	
  
increase	
  the	
  amount	
  of	
  clicks	
  that	
  ultimately	
  end	
  with	
  a	
  transaction.	
  	
  	
  For	
  Wendy’s,	
  
we	
  took	
  two	
  approaches	
  that	
  both	
  resonated	
  well	
  with	
  the	
  audience.	
  	
  A	
  great	
  offer	
  
already	
  available	
  in	
  the	
  store	
  like	
  $1.99	
  Baconator	
  Fries	
  and	
  an	
  offer	
  exclusively	
  on	
  
the	
  platform	
  such	
  as	
  buy	
  any	
  premium	
  salad	
  get	
  a	
  free	
  small	
  green	
  tea	
  or	
  bottled	
  
water	
  free.	
  It	
  ‘s	
  actually	
  somewhat	
  surprising	
  to	
  see	
  how	
  many	
  brands	
  still	
  use	
  
generic	
  messaging,	
  when	
  prime	
  opportunities	
  exist	
  to	
  really	
  provide	
  a	
  value	
  
proposition.	
  At	
  this	
  time,	
  a	
  brand	
  can	
  really	
  stand	
  out	
  from	
  the	
  competition	
  with	
  a	
  
strong	
  offer,	
  and	
  when	
  messaging	
  speaks	
  to	
  a	
  user’s	
  value,	
  then	
  creative	
  with	
  the	
  
copy	
  ”free”	
  or	
  to	
  a	
  lesser	
  extent	
  strong	
  value	
  price-­‐point	
  will	
  stay	
  top-­‐of-­‐mind	
  with	
  
drivers,	
  capable	
  of	
  inspiring	
  them	
  to	
  re-­‐route	
  to	
  the	
  nearest	
  Wendy’s	
  location.	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
	
  
During	
  the	
  course	
  of	
  this	
  eight-­‐week	
  flight	
  that	
  began	
  in	
  August	
  and	
  ended	
  in	
  
September,	
  the	
  campaign	
  generated	
  9.6K	
  clicks	
  and	
  over	
  4,000	
  navigations	
  to	
  
Wendy’s.	
  	
  The	
  navigation	
  rates	
  were	
  high,	
  which	
  topped	
  the	
  QSR	
  category	
  
benchmark.	
  	
  Most	
  importantly,	
  navigation	
  rates	
  reflect	
  trips	
  to	
  the	
  nearest	
  Wendy’s	
  
location	
  that	
  appeared	
  on	
  the	
  user’s	
  mobile	
  device.	
  Awareness	
  of	
  an	
  offer	
  or	
  nearby	
  
Wendy’s	
  location	
  has	
  been	
  generated,	
  but	
  action	
  and	
  the	
  option	
  to	
  navigate	
  to	
  the	
  
restaurant	
  simultaneously	
  demonstrates	
  the	
  effectiveness	
  of	
  location-­‐based	
  mobile	
  
advertising.	
  
	
  
So	
  path-­‐to-­‐purchase	
  options	
  have	
  changed	
  dramatically,	
  but	
  how	
  about	
  the	
  actual	
  
store	
  experience?	
  	
  Advertisers	
  can	
  now	
  target	
  customers	
  while	
  they	
  are	
  inside,	
  as	
  
mobile	
  devices	
  have	
  become	
  integral	
  not	
  just	
  to	
  someone’s	
  social,	
  personal	
  or	
  work	
  
life	
  but	
  also	
  to	
  the	
  shopping	
  experience.	
  	
  Customers	
  are	
  starting	
  to	
  use	
  it	
  as	
  method	
  
of	
  payment,	
  and	
  some	
  retailers	
  have	
  done	
  away	
  with	
  the	
  traditional	
  cash	
  register	
  
and	
  complete	
  transactions	
  on	
  iPads	
  or	
  similar	
  devices.	
  	
  Brands	
  have	
  created	
  apps	
  
that	
  enhance	
  the	
  customer	
  experience	
  by	
  encouraging	
  shoppers	
  to	
  share	
  what	
  they	
  
are	
  doing	
  and	
  where	
  they	
  are	
  to	
  receive	
  coupons	
  and	
  discounts;	
  they	
  have	
  built	
  
digital	
  maps	
  that	
  navigate	
  through	
  the	
  store	
  and	
  show	
  price	
  points;	
  they	
  allow	
  
loyalty	
  members	
  to	
  pre-­‐order	
  food	
  or	
  beverages	
  in	
  order	
  to	
  skip	
  lines.	
  The	
  brick	
  and	
  
mortar	
  store	
  experience	
  is	
  no	
  longer	
  contained	
  in	
  four	
  walls,	
  just	
  as	
  TV	
  is	
  no	
  longer	
  
watched	
  in	
  just	
  a	
  family	
  room.	
  	
  Mobile	
  technology	
  featured	
  in	
  brand	
  apps	
  that	
  are	
  
activated	
  based	
  on	
  location	
  in	
  a	
  particular	
  store	
  have	
  made	
  shopping	
  an	
  interactive	
  
experience.	
  
	
  
Looking	
  at	
  where	
  mobile	
  was	
  a	
  few	
  years	
  ago	
  in	
  relation	
  to	
  brands	
  and	
  advertising	
  
we	
  have	
  come	
  a	
  long	
  way,	
  but	
  can	
  even	
  go	
  further.	
  	
  	
  And	
  that	
  should	
  excite	
  us!	
  	
  As	
  
recent	
  as	
  2013,	
  several	
  major	
  brands	
  and	
  retailers	
  didn’t	
  even	
  have	
  a	
  mobile	
  
website,	
  yet	
  alone	
  a	
  specific	
  app	
  or	
  presence	
  on	
  a	
  traffic-­‐based	
  app.	
  	
  We	
  are	
  starting	
  
to	
  see	
  effective	
  mobile	
  advertising	
  because	
  brands	
  now	
  understand	
  how	
  it	
  drives	
  
transactions	
  in	
  real	
  time	
  and	
  are	
  allocating	
  more	
  dollars	
  to	
  this	
  medium.	
  Not	
  only	
  
can	
  brands	
  create	
  awareness	
  in	
  the	
  traditional	
  sense,	
  now	
  they	
  can	
  deliver	
  
conveniently	
  close	
  to	
  their	
  locations	
  or	
  while	
  in	
  the	
  store.	
  	
  It’s	
  up	
  to	
  agencies	
  and	
  
advertisers	
  to	
  stay	
  on	
  top	
  of	
  this	
  technology,	
  to	
  utilize	
  it	
  in	
  their	
  own	
  lives	
  to	
  
understand	
  it	
  and	
  the	
  possibilities,	
  and	
  think	
  of	
  innovative	
  ideas	
  through	
  it	
  that	
  can	
  
have	
  a	
  profound	
  effect	
  on	
  the	
  bottom	
  line.	
  
	
  
	
  

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Advertisers Now Harness the Power of Location-Based Apps

  • 1. Advertisers  Now  Harness  the  Power  of  Location-­‐Based  Apps     By:  Kyle  Nussbaum                                         The  popularity  of  mobile  advertising  has  increased  as  brands  have  harnessed  the   effectiveness  of  location-­‐based  technology.    Before,  mobile  ads  and  messaging   functioned  like  it  was  on  a  desktop  platform,  with  banners,  overlays  and  pre-­‐roll   videos  that  targeted  a  specific  demographic  based  on  tracking  measures.    Although   the  messaging  might  resonate  with  the  viewer  and  create  awareness,  it  was  not   within  moments  of  making  a  stop  or  purchase  decision.    Now,  the  way  we  shop  and   awareness  of  brand  activity  has  changed  dramatically  and  provides  a  message  that   just  might  resonate  based  on  interests,  preferences  and  apps  we  regularly  use  on   devices  that  we  can’t  live  without.     In  a  cluttered  market  place  where  multiple  advertisers  are  vying  for  attention,   location-­‐based  advertising  through  mobile  provides  a  relevant  message  that  offers   value,  gives  specific  directions  to  obtain  it  and  is  convenient  for  the  user  based  on   proximity  to  store  location  through  geo-­‐fencing  where  consumers  within  a  set  mile   radius  of  a  location  are  served.    And  this  is  very  exciting  for  the  industry.  In  January,   an  IAB  study  concluded  that  66%  of  marketers  believed  location-­‐based  advertising   the  most  exciting  mobile  opportunity  in  2016.   (https://econsultancy.com/blog/67418-­‐what-­‐is-­‐location-­‐based-­‐advertising-­‐why-­‐is-­‐it-­‐ the-­‐next-­‐big-­‐thing/)     The  most  effective  mobile  ads  in  this  context  are  those  that  provide  a  specific  offer   that  will  likely  propel  the  viewer  to  take  action.    Generic  messaging  creates   awareness,  just  as  traditional  advertising  does,  but  a  substantial  offer  increases  
  • 2. follow-­‐through  in  that  moment  since  they  are  in  a  direct  position  to  make  that   decision.     Initial  hic-­‐ups  of  early  location  based  campaigns  have  been  learned  from  and  better   targeting  tactics  have  been  formulated.    Early  days  saw  advertisers  starting  broad,   but  as  the  ability  and  technology  to  narrow  this  focus  down  to  those  more  likely  to   act,  ROI,  effectiveness  and  click-­‐thru  rates  have  inevitably  increased.   (http://www.adweek.com/news/technology/are-­‐marketers-­‐finally-­‐getting-­‐hang-­‐ location-­‐based-­‐mobile-­‐ads-­‐167212)         One  such  campaign  that  we  executed  on  behalf  of  Wendy’s  is  on  the  Waze  platform,   which  bills  itself  as  the  world’s  largest  community-­‐based  traffic  and  navigation  app.     A  location  such  as  Philadelphia,  where  this  campaign  is  live,  has  over  450,000   people  who  use  the  app  on  average  13.9  times  a  month,  and  during  this  time  spend   9  hours  on  it  while  driving.  With  so  many  smart  phone  users  that  launch  these  type   of  apps  that  utilize  location-­‐based  technology,  there  are  plenty  of  opportunities  for   advertisers  to  reach  this  audience.    When  a  “Wazer”  as  the  company  calls  them   drives  near  a  store  location,  a  brand  logo  will  appear  and  they  can  click  on  it  for   more  information  and  directions.    As  noted  earlier,  having  a  valuable  offer  will   increase  the  amount  of  clicks  that  ultimately  end  with  a  transaction.      For  Wendy’s,   we  took  two  approaches  that  both  resonated  well  with  the  audience.    A  great  offer   already  available  in  the  store  like  $1.99  Baconator  Fries  and  an  offer  exclusively  on   the  platform  such  as  buy  any  premium  salad  get  a  free  small  green  tea  or  bottled   water  free.  It  ‘s  actually  somewhat  surprising  to  see  how  many  brands  still  use   generic  messaging,  when  prime  opportunities  exist  to  really  provide  a  value   proposition.  At  this  time,  a  brand  can  really  stand  out  from  the  competition  with  a   strong  offer,  and  when  messaging  speaks  to  a  user’s  value,  then  creative  with  the   copy  ”free”  or  to  a  lesser  extent  strong  value  price-­‐point  will  stay  top-­‐of-­‐mind  with   drivers,  capable  of  inspiring  them  to  re-­‐route  to  the  nearest  Wendy’s  location.                                  
  • 3. During  the  course  of  this  eight-­‐week  flight  that  began  in  August  and  ended  in   September,  the  campaign  generated  9.6K  clicks  and  over  4,000  navigations  to   Wendy’s.    The  navigation  rates  were  high,  which  topped  the  QSR  category   benchmark.    Most  importantly,  navigation  rates  reflect  trips  to  the  nearest  Wendy’s   location  that  appeared  on  the  user’s  mobile  device.  Awareness  of  an  offer  or  nearby   Wendy’s  location  has  been  generated,  but  action  and  the  option  to  navigate  to  the   restaurant  simultaneously  demonstrates  the  effectiveness  of  location-­‐based  mobile   advertising.     So  path-­‐to-­‐purchase  options  have  changed  dramatically,  but  how  about  the  actual   store  experience?    Advertisers  can  now  target  customers  while  they  are  inside,  as   mobile  devices  have  become  integral  not  just  to  someone’s  social,  personal  or  work   life  but  also  to  the  shopping  experience.    Customers  are  starting  to  use  it  as  method   of  payment,  and  some  retailers  have  done  away  with  the  traditional  cash  register   and  complete  transactions  on  iPads  or  similar  devices.    Brands  have  created  apps   that  enhance  the  customer  experience  by  encouraging  shoppers  to  share  what  they   are  doing  and  where  they  are  to  receive  coupons  and  discounts;  they  have  built   digital  maps  that  navigate  through  the  store  and  show  price  points;  they  allow   loyalty  members  to  pre-­‐order  food  or  beverages  in  order  to  skip  lines.  The  brick  and   mortar  store  experience  is  no  longer  contained  in  four  walls,  just  as  TV  is  no  longer   watched  in  just  a  family  room.    Mobile  technology  featured  in  brand  apps  that  are   activated  based  on  location  in  a  particular  store  have  made  shopping  an  interactive   experience.     Looking  at  where  mobile  was  a  few  years  ago  in  relation  to  brands  and  advertising   we  have  come  a  long  way,  but  can  even  go  further.      And  that  should  excite  us!    As   recent  as  2013,  several  major  brands  and  retailers  didn’t  even  have  a  mobile   website,  yet  alone  a  specific  app  or  presence  on  a  traffic-­‐based  app.    We  are  starting   to  see  effective  mobile  advertising  because  brands  now  understand  how  it  drives   transactions  in  real  time  and  are  allocating  more  dollars  to  this  medium.  Not  only   can  brands  create  awareness  in  the  traditional  sense,  now  they  can  deliver   conveniently  close  to  their  locations  or  while  in  the  store.    It’s  up  to  agencies  and   advertisers  to  stay  on  top  of  this  technology,  to  utilize  it  in  their  own  lives  to   understand  it  and  the  possibilities,  and  think  of  innovative  ideas  through  it  that  can   have  a  profound  effect  on  the  bottom  line.