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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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!

4

•  " Location: the unique to mobile opportunity!
!
• " Common Location Terminology !
"!
• " Top Tactics by Category!
"!
• " Client Case Studies by Category!
!
• " Q&A!
"!
"!
Today’s Agenda!

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Moderator!
Presenters!
Monica Ho!
SVP, Marketing!
MMA Location Committee Co-Chair!
xAd!
Monica.ho@xad.com!
!
James Smith!
Chief Revenue Ofﬁcer!
MMA Location Advertising, Working Group Lead!
Verve!
James.smith@verve.com!
!
Leo Scullin!
Head of Global Industry Initiatives!
Mobile Marketing Association!
Heather Sears!
Executive Director, Marketing!
MMA Location Advertising Committee Member!
YP Mobile!
Heather.sears@yp.com!
!
!

6

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 NEEDVARIES 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


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

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

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

22
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

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

Source:
YP/Sense
Networks


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


… AT LEAST NOT HOWYOU 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

Source:
YP/Sense
Networks


“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

Source:
YP/Sense
Networks


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, NY 
Shops 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!
Source:
YP/Sense
Networks


•  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

Source:
YP/Sense
Networks


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:

• RetargetedVespa 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 AUTOVARY 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*

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

56

!
•  “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!

57

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

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