closed loop mobile marketing - the holy grail is here

In Data We Trust !

OMG! Closed Loop is Really Here Webinar

June 24, 2014http://go.prove.it/ClosedLoopWebinar

David Shor Chief Executive OfficerProve

Keith KilpatrickProduct Leadership NinthDecimal

4©2014 Prove Confidential & Proprietary

Marketing’s9history9is9based9on9skilled9betsbut9few9facts.

Did9it9“work?”

Closed Loop Marketing Webinar


OMG!


Closed Loop Marketing Webinar©2014 Prove Confidential & Proprietary

Before&Ad&Servers&and&View1through

Until&Closed&Loop&Arrived Today

Visibility&to&Results&For&People&Who&Never&Click

✗ ✔ ✔

Online&to&Offline&Impact&Tracking&Capabilities

✗Coupons&and&

Expensive&Surveys&Only

✔

Marketers Most Sought After Capability is Here!

6

Evolving Environment for “Impact Verification”


Understanding “Closed Loop” Marketing

7

+ Primarily associated with advertising to mobile device users (smartphones, tablets and “phablets”)

+ Enabled by GPS/location-sensing technology available on mobile devices

+ Digital ad impressions shown to mobile device users can be correlated via location tracking to real world locations

+ For further correlation to actual in-store purchases, purchase database data is tied back to the mobile device user

+ Closed Loop marketing reduces the reliance on coupon redemptions to track marketing effectiveness

+ Visibility into store visits and in-store purchases is highly valuable data but increases marketing accountability often to uncomfortable places for brand marketers whose advertising must actually perform


Why Closed Loop Matters

8

Advertising delivered in a specific geography relative to the advertiser’s location(s) impacts response in significant ways depending on the vertical

9

About Prove

©2014 Prove Confidential & Proprietary Closed Loop Marketing Webinar

Closed Loop Marketing Webinar©2014 Prove Confidential & Proprietary 10

The Prove engagement team brings in excess of 80 years of digital customer experience, analytics, acquisition and retention expertise advising a wide variety of brands including:


02 About Prove

Prove Management Team

Stephen Shelton Chief Analytics Officer

David ShorCEO

Josh Coffman!Chief Engineer

Vincent Cevalte!Dir., CRM & Retention

Amber CorderoChief Content Officer

Pat HadnagyCOO


Closed Loop Marketing Webinar©2014 Prove Confidential & Proprietary 1111©2014 Prove Confidential & Proprietary

02 About Prove

Prove Services

OMNICHANNEL STRATEGY & BUSINESS CONSULTING ANALYTICS & INSIGHTS USER EXPERIENCE &

CUSTOMER JOURNEYCUSTOMER ACQUISITION &

RETENTIONECOMMERCE &

TECHNOLOGY DEVELOPMENT

SEO/SEM DIGITAL & EMERGING MEDIA MOBILE STRATEGY & APP DEVELOPMENT

SOCIAL MEDIA, PR, MEDIA RELATIONS,

BLOG OUTREACH

CONTENT MARKETING & DISTRIBUTION


Closed Loop Marketing Webinar©2014 Prove Confidential & Proprietary©2014 Prove Confidential & Proprietary

Execution MethodologyIn support of our Little Bets approach, we execute initiatives differently. !Ramp Up. Maximize Learnings. Minimize Risk. Incorporate Successes.

Launch Fast Get into the market quickly

Test & Optimize Test multiple variations

Learn Fast Eliminate failing components quickly

Evolve Systematically incorporate learnings

02 About Prove

12


About

©2014 Prove Confidential & Proprietary

formerly Closed Loop Marketing Webinar


03 About NinthDecimal

The9Most9Comprehensive9Understanding9of9People9by9Connecting9their9Digital9and9

Physical9Lives

+

What is NinthDecimal?


Audiences9Built9from9The9Signals9That9Matter

Public DataReadily available data such as census, car registrations, etc.

What You BuyPurchases from loyalty programs

and credit card transactions

Where You GoRetail, work, home and other

physical locations

Devices You UseHandset make, device type and

OS platform

Content You ConsumeApps, app categories and other

digital content

1st Party DataClient CRM and other 1st party

marketing databases



Massive9Reach9Across9the9Digital9Ecosystem

Mobile Display Rich-media Mobile Video Cross-Device Wi-Fi Access

The Same Audience Across Media

320x480 300x250




Shift from Media-Centric to People-Centric“The old media mix modeling approaches are broken. We need a human-centric

approach to advertising today” – Chia Chen, SVP Mobile, Digitas

Buy a Media to Reach an Audience Buy an Audience and Reach Same Person Through Different Media



How Do You Create People-Centric?

A Platform Architected Around the Individual

NinthDecimal Uniquely Understands Audiences

to Within 4 Feet



Financials

NinthDecimal Works with Hundreds of Leading Brand Advertisers

Tech / Telecom

Travel / Hospitality

Retail / QSR

CPG

Automotive

20

Digging intoClosed Loop Marketing

©2014 Prove Confidential & Proprietary

formerly Closed Loop Marketing Webinar


Real World Challenge Your mobile campaign reaches your target audience.

Your target audience will likely visit your location anyway.

How do you know your campaign drove an actual INCREASE in store visits?

?

Marketers want an accurate metric that measures ROI on mobile ads

Marketer’s Goal: Increase Store Visits

04 Digging into Closed Loop Marketing


NinthDecimal’s Challenge !

How to Build a Closed Loop Offeringwith the metrics CMOs want?

22




Why? Know where the consumer is vs. where an app thinks they are

You’re Here

Your App Says Here

25 miles

+ Verify all your publisher partners

+ Proactively filter all impressions

+ NinthDecimal uses 5 filters

Make Sure Consumer’s Location is Accurate


Store is Here

Database Says Here

400 ft.

+ 40% of store locations incorrect in most databases

+ Team to validate all locations

+ Use a Multi-Geo-Coding process


Why? Know where the store is vs. where a standard database thinks it is

Make Sure Context of the Location is Correct


Place Centric Approach In Shopping District

People Centric Approach In Shopping District,

In Armani In Back of Store


Why? Imprecise targeting significantly reduces value of platform

Make Sure Audience Platform is Precise


Five Guys

Bricktown Mall

Beauty Supply

Home Depot

Baseball Field at Park

Lee Nails

3 visits to Sears (11/15, 11/19, 12/2)


Precise targeting based on recent and present location visits enablesfar more data points.

31 More Opportunities for Targeting



1 Billion Devices

1 Trillion Data Points

100 Billion Data Points / Month

100s of Audience Segments

Data That is Collected to Make it Happen



Closed Loop Marketing bridges data about “Time” and “Money”

Contributors to the Data Set

What You BuyPurchases from loyalty

programs and credit card transactions

Where You GoRetail, work, home and other physical

locations



How we Prove Ad Effectiveness

What Proveand NinthDecimalMeasures: Increase inStore Visits

What existing solutions measure: Total Visits(across allchannels)



A Metric for CMOs: “The Location Conversion Index”

NinthDecimal’s “Location Conversion Index™ (LCI) is the Industry’s first mobile ROI metric that measures actual increase of in-store visits.

!LCI™ helps Marketers understand how their mobile ad spend influences consumer behavior on the go.”



A Control Group to Prove LCITM

4. Verify Same Visit ProfileFind Control With Same Visit Volume and LG™ Audience

Visit Pattern as Exposed

2. Match on DemosTightly Match Control to

Exposed on Gender, Ethnicity, Age, HHI & Presence of Children

1. Verify Same DMAConfirm Control Lives in

the Same DMA as Exposed Group

3. Verify Active on NetworkControl Group Must Be Active During Measurement Period

For Daily Lift Calculations

5. Remove EmployeesRemove Employees from

Control Group for Accurate Lift Measurement

To prove ad effectiveness, compare results of people exposed to the ads with people who were not exposed. Because location data is available regardless of whether the user was exposed to an ad, you can clearly see the behavior of the Control and the behavior of the Ad Exposed



How NinthDecimal Closes the Loop

Location

Conversion

Index™

Identify an Identical Control Group using Like Demographics &

Behaviors and Monitor Store Visits

Create and Target Your Mobile Audience via

Location Graph™ with data from over

1B Devices

Calculate Location Conversion Index™ for Your Audience &

Locations

Monitor Your Audience’s Natural Store Visits

& Account for Seasonality

Accurately Measure Lift in Actual Store Visits for both

Audience Groups



How Ecommerce and non-Retail Brands BenefitThe principal benefiters of Closed Loop Marketing are companies selling in stores. Other types of companies can benefit:

Ecommerce BrandsProfessional Services (Medical, Dental, etc.) Lead Generators

Identify brick & mortar competitors frequented by customers

Understand how prospects exposed to mobile media brings people to clinics (sales conversion metrics)

Identify brick & mortar competitors frequented by customers

Understand your customers’ and prospects’ offline shopping baskets

Understand your customers’ and prospects’ offline shopping baskets

Develop offline and online partnerships with brands your prospects frequent




Prove is an agency built to help companies master the opportunities of digital analytics, customer acquisition and retention.

We will help you prove the value of mobile and Closed Loop Marketing.

34


NinthDecimal Case Studies


05 Case Studies

Crazygood Results to ShareThe principal benefiters of Closed Loop Marketing are companies selling in stores. Other types of companies can benefit:+ Mobile ads drove 21x the store visits vs. consumers not exposed to the ads

for all 2H 2013 campaigns

+ Mobile ad campaigns delivered a 54% lift over the general population and a 37% lift over the control group.

+ Exposure to mobile QSR & casual dining ads drove 33x the store visits vs. consumers not exposed to the ads

+ Mobile ad campaigns delivered a 47% lift over the general population and a 35% lift over the control group.


Source: NinthDecimal , Q4 2013

Drive-to-Location for all 2H 2013 Campaigns Drive-to-Location for QSR & Casual Dining

100

135

147

General Population

LCI™

Audience Matched

Control LCI™

Audience Exposed

LCI™

General Population

LCI™

Audience Matched

Control LCI™

Audience Exposed

LCI™

Methodology: Using Location Conversion Index™ we benchmarked all drive-to-location campaigns from the 2nd half of 2013 to measure the overall success of our clients’ mobile ad campaigns. First we established a normal visit rate for the general population to the locations as an index of 100. Then we compared visits of audiences exposed to the mobile campaigns to a mirror control group of unexposed consumers. The result measures the incremental visits driven specifically by mobile advertising.

Source: NinthDecimal , Q4 2013

Overall Results for NinthDecimal Customers

05 Case Studies

100

137

154


Client Details and Rationale for Buy + Large competitive win: $330K budget + Buy awarded by virtue of Location Graph

targeting and LCI measurement precision and capabilities

!Campaign Objectives + Reach custom, location-derived

audiences within 10 mile radius of Microsoft stores in 41 DMAs

+ Increase brand awareness and consideration during holiday gift-giving season

+ Custom audience included: • Tech Enthusiasts • Holiday Shoppers • Competitive Store Shoppers • Big Box Shoppers

91%Lift vs General

Population

89%Lift vs Control

Population

2%Control Group Natural Visit

Rate

General'Popula,on'LCI™ Audience'Matched'Control'LCI™ Exposed'Audience'LCI™

191

101.5957100

89%

91%

05 Case Studies

LCI Case Study: Microsoft Stores Campaign


NinthDecimal Custom Audience Solution

Campaign Objective: • Support awareness of work apparel line • Drive existing customers in-store • Drive top competitor customer’s in-store

• Casual Female Shoppers • Who frequently shop at the Retailer’s stores as well as top competitor stores:

05 Case Studies

Fortune 500 Fashion RetailerChallenge: How to measure effectiveness of driving target audience to store?


1. Ad Engagements Near Store

2. Store Visits After Ad Engage

3. Incremental Visits Due to Mobile

05 Case Studies

Fortune 500 Fashion Retailer LCITM Visualized


57%Lift vs General

Population

32%Lift vs Control

Population

25%Control Group Natural Visit

Rate

05 Case Studies

Retail Case Study

Leading Women’s Fashion Retailer + Reach casual female clothing shoppers who frequent competitor stores + Drive consumers to retailers’ hundreds of retail locations + Promote new seasonal clothing line


Leading Women’s Fashion Retailer + Reach casual female clothing shoppers who frequent competitor stores + Drive consumers to retailers’ hundreds of retail locations + Promote new seasonal clothing line

05 Case Studies

LCI™ by Audience and Ad Type


NinthDecimal LCI™

!• Accounts for Historical

Visit Rate by Location • Adjusts for Seasonality • Creates a Control

Group that Identically Matches Your Target Audience

• Accurately measure in-store visits versus consumers just nearby

• Shows True Increase in Store Visits from Your Campaign

Panel

!• Extrapolates Visit Rate

from Small Panel • No Direct 1:1 Audience

Match • Small Panel-to-Target

Audience Match Rate • Shows Extrapolated,

Not Actual Increase in Store Visits from Your Campaign

Basic Visit Rate

!• No Adjustment for

Natural Visits • No Accounting for

Seasonality • Control Audience Not

Matched to Exposed Target Audience

• Can only measure 25% of exposed uniques

• Shows Store Visits, but Not Actual Increase from Your Campaign

05 Case Studies

LCI™ versus Other Approaches


Planning Closed Loop Media Buys+ Smart advertisers will interpret the Audience Control

Group as the true baseline for performance advertising

+ It has almost certainly always been the case with advertising that a substantial percentage of prospects would have become customers anyway

+ The advertising community needs to come to terms with the fact that visibility to brand vs. performance advertising has never been more clear

+ One way to think about advertising to the Exposed Audience is: most of the advertising is brand advertising but the lift is the performance component

+ Additionally, advertisers can now estimate the true cost of shifting market share by acquiring customers they would not likely have had, so typical acquisition costs can be adjusted upward for market share-shift

This is the big implication for marketing strategy because advertisers can now differentiate between brand support and acquisition support

05 Case Studies

Prove | 12910 Culver Blvd., Suite D, Los Angeles, CA 90066 | t 310-737-8600 | www.prove.it

For More Information, Contact: Leonard Velez

Director, Client Partnerships P r o v e

310-737-8600 [email protected]

closed loop mobile marketing - the holy grail is here

Marketing

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