deals & mobile: the race for hyper-local
DESCRIPTION
Presented at the daily deal summit, 4/18/12.TRANSCRIPT
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Deals & Mobile:
The Race for Hyper-localDaily Deal Summit
Josh EngroffApril 18, 2012
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Over the next decade, three trends will interact to reshape our lives…
- John Doerr
MoMobile
MoMobile
“ “
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the future of mobile commerce is huge
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Source: IDC; Business Insider
Smartphones already outsell PCs, and will dwarf them in coming years
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Source: Business Insider
In 2011, PayPal processed $4B in mobile payments
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Source: Business Insider
Although just a year old, Square processes $11M per day
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Source: BIA/Kelsey
Local advertising will account for 70% of all mobile advertising in 2016
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what do we mean when we say hyper-local ?
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country…
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Image from our deck
dma…
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city…
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zip…
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hyper-local.
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daily deals are particularly well suited to hyper-local on mobile
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Q: how does a daily deal marketer break free from the confines of a
specific app?
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A: by targeting at scale across all mobile inventory types
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For example….
• Goal: increase purchases of time-sensitive offers by putting them in the hands of people within 0.25 miles (or less) of the merchant
• Launched in NYC, Chicago, Phoenix
• Result: ESM developed a method to programmatically ingest 50,000 offers per day, target them to the right users, track conversions, and optimize ongoing purchases using a new metric called
DMAP: “distance from merchant at time of purchase”
Large Daily Deal
Client
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to succeed at hyper-local targeting on mobile,
you must have….
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• Latitude / longitude hard to obtain
• Therefore, use a partner who can infer hyper-location using other seed data…
• …and has access to at least 100 Billion total mobile impressions per month
Scale
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• Thousands of merchants means tens of thousands of deals every day
• Use common frameworks to export this data to your partner, and make sure they have the capacity to ingest and process in real-time
• And don’t forget to set up conversion tracking!
Data
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• If buying on the mobile exchanges, your partner must be able to submit bids on your behalf in under 50 ms
• Scalable
• Flexible
• Secure
Rock-SolidTechnology
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Supply Side
Partners
Bidders Geo-aware Datastore
Can increase number of silos
to meet demand
Can increase number of bidders to meet demand
Bidders Geo-aware Datastore
Bidders Geo-aware Datastore
Central Datastore
Processing
AdManager UI Reporting API
Peer1 Managed Data CenterAmazon Cloud Silos
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• Which categories of merchants do best in a given part of a city? Soho for Spas, Chinatown for restaurants, Midtown for theater? That’s easy.
• Your partner should be able to show you impressions, clicks and conversions in real-time – and tell you the optimal combination of Deal Category and DMAP by Neighborhood.
Analytics
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• Make your mobile checkout extremely easy to use
• This is true both for apps and mobile web checkouts
• #1 reason users don’t convert post-click is because of barriers in the funnel
Simplicity
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• Social on Mobile = small cohorts of users who share the same physical space for some amount of time
• Targeting offers to cohorts like this improves response rates 3x – 10x over segmentation schemes such as demographics, psychographics
• On mobile, this involves data science. If “data science” is a foreign word to your prospective partner, avoid them!
Social
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Thank You!Daily Deal Summit
Josh EngroffApril 18, 2012