blue cava whitepaper 4

8/2/2019 Blue Cava Whitepaper 4

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Inside

Executive Summary.................................................................................................. 2The Challenges of Mobile Marketing ROI Measurement ........................................... 2The Mobile Imperative .............................................................................................. 3Flood of Mobile Apps Opens Doors for Proactive Advertisers ................................... 4Mobile Device? No Cookies? No Problem! ............................................................... 5Multi-Channel Solutions Enable Campaign Success Management ........................... 6

Copyright 2011, BlueCava, Inc.www.BlueCava.comAll Rights Reserved

Executive White Paper Series

Measuring Mobile Advertising ROIUsing BlueCava Device Identification


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Executive Summary

Users of mobile devices represent a huge market opportunity for interactive

advertisers. The USA is the second largest national market after Japan, inmobile advertising expenditures. The total mobile ad spend in the USA during2011 is forecast to be $1.24 billion, rising to $5.04 billion in 2015, accordingto industry researchers at mobileSQUARED.

There are more than 300 millionactive mobile users in the USA,and because of this impressivescale, the average U.S. mobileadvertising campaign budget

now falls between $75,000 and$100,000, a significantly highernumber than in other countries.

This paper is intended for media buyers and advertising professionals currentlyengaged in mobile advertising or considering such campaigns in the near term,and who have identified a strong need to accurately measure the value of thosecampaigns and determine their true return on investment.

The Challenges of Mobile Marketing ROI Measurement

The rapid growth of mobile marketing has been driven by a number of factors,including the explosion in the number of smartphones and other Web-capabledevices, along with the rapid adoption of a wide range of compelling interactivecontent sources including social networks that have proven highly attractiveto tens of millions of mobile device users.

In a 2011 report, digital market intelligence firm comScore, sized it up like this:

2010 was a game-changing year for the mobile industry. Smartphone adoption,3G penetration and unlimited data plans drove a surge of mobile media consumption

across geographies and deepened the integration of mobile devices into everydaylife. As the mobile ecosystem continues to develop, including progress in mobileadvertising and commerce, it's clear that mobile is destined to become anincreasingly important platform for digital marketers across all industries."

Source: mobileSQUARED Research


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Mobile advertising is a natural and anticipated extension of Internet marketing, butthe rate of growth of this newer modality has exceeded all expectations. For manyadvertisers, the need to understand how to get the most for the mobile advertisingdollar has become a critical driving issue in their technology purchasing plans.

The Mobile Imperative

Whether the geometricgrowth of mobile marketingis a result of the declininginfluence of traditional printmedia or the cause of it is open to debate. What hasbecome clear is that mostadvertisers now understand

they should start investing amore sizable portion of theiradvertising budgets inmobile marketing.

Every advertiser needs to monitor and measure the results of every campaign tojustify the advertising expenditure and secure more funds for future campaigns.This is especially true in the world of mobile advertising, since its a newer mediumand one that is still a mystery to many traditional print and online marketers.

There are numerous measurements

that can be made on Internet displayads viewed on notebook and desktopcomputers, such as when and how oftena consumer clicks on a particular ad. Tosome degree, advertisers can also monitora persons path down the conversion funneland track their related online purchases.

In the mobile environment, however,very few consumers actually click on mobileads and make purchases directly on their

mobile device, due in part to the small sizeof mobile screens and in part to the natureof mobility. And mobile aps dont usetracking cookies. All of this makes it difficultto measure the influence of viewed mobileads on later purchase behavior.


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Flood of Mobile Apps Opens Doors for Proactive Advertisers

According to Mobile Tech Today, mobile users are rapidly dialing in to to a hugeselection of apps ranging from virtual whoopee cushions to highly refined video games.

One of these popular mobileapps is The Weather ChannelMax for iPhone, that deliversanimated forecast radar images,severe weather alerts localizedto a neighborhood as wellas worldwide video forecastsfrom The Weather Channelsmeteorologists.

The Weather Channel Max is justone of many mobile aps whereadvertisers can leverage BlueCavatechnology to serve up appropriateadvertisements to users that arerelevant to their current interestsand their immediate environment.

As an example, a homeward bound commuter might check the local weather onhis iPhone and spot a mobile ad for a cool new Honda car then, an hour latermigrates to a notebook computer in his or her household, opens his browser tothe Honda Web site and views rich color images and more detailed informationon that vehicle.

That notebook-based visitmight later result in thepurchase of the new familycar, trackable back to thatbuyers history and theoriginal mobile advertisingimpression that influencedthe decision. This allowsthe advertiser to measurethe success of that specific

mobile campaign andrefine the targeting strategyfor future investments.

This precise multi-channel household tracking and mobile campaign ROImeasurement is made possible by BlueCavas device identification and physicaldevice fingerprinting technology, which has the ability to identify not onlyindividual devices but also that relationships between devices exist.


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Mobile Device? No Cookies? No Problem!

On smartphones, people use browsers for basic searches, street navigation andto locate restaurants and shopping. But, a lions share of mobile activity involvesstandalone applications that dont use cookies. That means that advertisers cantrely on cookies to determine when a user is accessing a particular mobile appinto which they want to insert a context-relevant mobile advertisement.

The BlueCava Platform easily solvesthis no cookie mobile targeting issuebecause it doesnt depend on trackingcookies to identify and track customerbehavior. BlueCava instead creates apersistent and seamless electronicfingerprint based on the uniquecharacteristics of any connected device,and then supplements targeting databased on that device and any browsersor aps in use. This process is enabled

by BlueCavas device identificationtechnology, which then relies on thatfingerprint (not a cookie) as a meansof continuing identification.


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The BlueCava device identification platform helps advertisers understandmulti-channel associations between two different devices and correlate a specificactivity on one device with an activity on another device in the same household.Once a device is identified, the BlueCava platform can also provide demographicand behavioral targeting data for those devices. The mobile user does not have

to click through on an ad to be identified. The advertiser can identify the mobiledevice by the fact that an ad was served to it by a particular app, and from thereits possible to correlate that a notebook computer user in the same householdlater visited the Honda.com Web site and browsed through the specifications ofthe same car that was featured in the mobile ad.

Multi-Channel Solutions Enable Campaign Success Management

In mobile advertising, device identification produces significant value. ROI analysisusing the BlueCava device identification platform allows mobile advertisers to trackhow well campaigns have performed and demonstrate the added value of the mobilecampaign within an overall multi-channel media strategy. This may include anassessment of how a mobile campaign influenced short-term consumer behaviorand how many people were driven to the point of purchase. When revenuegeneration is compared to campaign costs, pure ROI can be calculated and shown.

Improved brand exposure and brand awareness are enabled when more precisetargeting takes place due to deeper demographic intelligence acquired throughdevice identification. Mobile advertisers gain the ability to access new and moregranular target audiences and demographic pools that would be difficult orimpossible to reach using traditional Internet advertising methods. Using deviceidentification, advertisers can realize a lift of fifty percent or more in mobile targeting.


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BlueCava and Privacy

Privacy is a fundamental consideration for BlueCava with regard to personaldata for online and mobile ad targeting. BlueCava a does not capture names,social security numbers, email addresses or personal data. BlueCava focuseson devices, not people. BlueCava determines device identities, then recordswhat devices do on sites that use BlueCava technology. All personal informationis stripped out. The BlueCava Platform uses the same information availableonline for Web advertising, but uses this data to identify a device uniquely forthe purpose of ad targeting. BlueCava is a vehement advocate or personalprivacy. For a full description of the BlueCava Privacy Policy, please visit:

www.bluecava.com/privacy-policy

More refined segmentation alsobecomes possible when targetingis done based on specific mobilecharacteristics of the potentialcustomer, as discovered through

device identification. Whilepersonal privacy is alwaysa top priority, precise devicefingerprinting and identificationgives mobile advertisers theoption to target safe andanonymous messages based onthe users general location, suchas a particular zip code or avenue such as a sports stadium.

This greater precision allows for more precise demographic targeting to the level ofhigh-impact, micro-local advertising, a feat that is usually not achievable with typicalInternet advertising.

The new mobile society is quite possibly the fastest growing market opportunityfor interactive marketers. Mobile advertising becomes even more effective whencampaigns are implemented using next-generation multi-channel marketingsolutions from BlueCava. Device identification represents a brand new

methodology for monitoring campaign success that extends far beyond thecapabilities of tracking cookies to enable specific ROI calculation and a granularidentification of the influences that drive conversions. Brand advertisers arebeginning to demand more financial proof that their mobile ad campaigns areperforming and creating real value. With device identification, its now possible,for the first time, to measure and demonstrate concrete returns on investment.

blue cava whitepaper 4

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