tnv location score index-q2 2014-300dpi

8/12/2019 TNV Location Score Index-Q2 2014-300dpi

1/9

Q2 2014

MOBILE ADVERTISINGSGUIDE TO LOCATIONACCURACY

LOCATIONSCORE

INDEX


2/9

THIS REPORT FOCUSES ON HELPING

MARKETERS UNDERSTAND:

The current state of

location data quality in

the mobile ecosystem

How location data is

generated

The impact of accurate

location data on

campaign performance

INTRODUCING LOCATION SCORE

: THE FIRST TOOL TOMEASURE LOCATION ACCURACY IN MOBILE ADVERTISING

Location is front and center in the mobile industry and the pace of technological change

has been amazing. First-generation geofences have been replaced with advanced prox-

imity targeting, as well as location-driven audience targeting and behavioral retargeting.

Location is solving the mobile cookie dilemma, and continued improvements in location

data will deliver an even greater supply of targeting opportunities.

In 2012, approximately 10% of all ad requests contained location data, while in 2014

the number is closer to 67%. As advertiser demand for location data has grown, so too

has the number of publishers, ad networks, and other inventory sources willing to share

location data. But, is this flood of new location data good for the industry? It all depends

on the quality of the data.

Accurate targeting is reliant on accurate location data. This report seeks to help

marketers understand the state of the industry in terms of the quality of location data.

The goal of the Location Score Index is to provide transparency and understanding to

the marketers who will influence the direction of mobile marketing. The quality of

location data will continue to improve and we hope this report helps to educate and

accelerate the pace of change.

LOCATIONACCURACYMATTERS

There are enormous opportunities in mobile but as marketers, we are

constantly evaluating tools to help us get to the best data possible. Location

Score helps us to be smarter, ROI driven buyers and will help accelerate the

industry to move towards more accurate location data.

Amit Shah, VP of Marketing, 1-800-Flowers.com

2 Location Score Index Q2 2014 @Thinknea


3/9

DATA POINTS PULLED FROM MOBILE CAMPAIGN TARGETING SPECIFIC LOCATIONS WITHIN THE DALLAS/FORT WORTH DMA, Q2 2014.STATED USER LOCATIONS AT LEFT REPRESENT THE STATED USER LOCATION PER THE AD REQUEST. ACTUAL USER LOCATIONS AT RIGHT

REPRESENT THE TRUE USER LOCATION AT TIME OF AD REQUEST BASED ON REAL-TIME COLLECTION OF USER LOCATION DATA.

STATED USER LOCATIONS ACTUAL USER LOCATIONS

Senior-level marketers are seeking more

transparency and a better understandingof data quality related to location-based

marketing. With this report, Thinknear

announces the launch of Location Score,

the first technology designed to give mar-

keters deep insight into the quality and

accuracy of the location data used in

mobile campaigns.

The technology will provide marketers with

a transparent and objective measurement

tool that will enable more accurate target-

ing and better consumer experiences with

location-based advertising.

The technology is also the power behind

this report, the inaugural edition of the

Location Score Index. The Location Score

Index is a summary of the overall state of

location for the mobile industry. Marketers

know that data quality can vary signifi-cantly, and it is our goal to help marketers

understand how both accurate and inaccu-

rate location data can impact campaigns.

DEFINING LOCATION ACCURACYLocation Accuracy is defined as the prox-

imity of a users stated location per the

ad request, compared to the users actual

location in the real world. Stated vs. actual

location can vary by a matter of feet, or a

matter of miles. Identifying the users true

location is the goal of any ad network, as it

enables enhanced targeting opportunities.

METHODOLOGYThe Thinknear platform accesses the major

sources of location-enabled mobile inven-

tory in the U.S. To compile this report, we

sampled and analyzed data from over 3.5

billion publisher ad requests, 53 million adimpressions and have run location accuracy

tests on over 20,000 consumer ad experi-

ences. Our analysis focuses specifically on:

o Quantifying the volume of ad requests

that include both high-quality and

low-quality location data

o Measuring the accuracy of location

data with regard to the stated vs.

actual location of a mobile user

o Quantifying the impact of location

accuracy on mobile campaigns

INTRODUCING LOCATION SCORE

ANDTHE LOCATION SCORE INDEX

LOCATION ACCURACY REFERS TO THE PROXIMITY OF A USERS STATED LOCATION PER AN ADREQUEST COMPARED TO THE USERS TRUE LOCATION IN THE REAL WORLD. THINKNEAR FOUNDSIGNIFICANT ISSUES IN LOCATION ACCURACY THROUGHOUT THE INDUSTRY, PROMPTING THECREATION OF THE LOCATION SCORE INDEX.

@Thinknea3 Location Score Index Q2 2014


4/9

49LOCATION SCORE

VOLUME BY ACCURACY LEVEL

34%HYPER LOCAL Location data was accurate to within 100

meters of the users true real-time location.

9% LOCAL Location data was accurate between100 and 1,000 meters of the users truereal-time location.

30% REGIONAL Location data was accurate between

1,000 and 10,000 meters of the users

true real-time location.

20% MULTI-REGIONAL Location data was accurate between

10,000 and 100,000 meters of the

users true real-time location.

7% NATIONAL Location data was not accurate within

100,000 meters of the users true

real-time location.

OUT OF 100

Weve seen that the quality of location data makes a significant impact on

campaign performance. Location Score is a great tool that will help us ensure

the targeting is accurate and that performance is optimized for our clients.

Alex Richter, Camelot Strategic Marketing & Media

BY OPERATING SYSTEM

51 ANDROID

48 iOS

BY POPULATION DENSITY

50 URBAN

44 RURAL

INDUSTRY AVERAGE

LOCATION SCORE



5/9


6/9

NOT ALL LOCATIONDATA IS CREATEDEQUAL. TO GET THEMOST OUT OF YOURMOBILE ADVERTISINGDOLLAR, ITS CRITICAL

TO UNDERSTAND HOWLOCATION DATA ISCOLLECTED

Most marketers are just beginning to

understand the complexity of mobile

data. The location ecosystem can be

difficult to navigate, but its important

for marketers to know the sources and

relevant levels of quality associated

with mobile location data.

While the growth in available data is

conceptually a good thing, the prob-

lem is that growth often comes at the

expense of quality. App publishers

understand that location data results

in higher eCPMs and better moneti-

zation rates. Therefore, app develop-

ers are incentivized to include location

data in their ad requests, regardless of

the source and accuracy of the data.

The problem facing the industry is that

app developers are not location experts

and the data being passed to adver-

tisers is often of very low quality. The

result is that a mobile users true loca-

tion is often very different from the app

developers stated location for the user.

This impacts targeting, mobile creative

mobile content, and the overall engage-

ment experience between advertisers

and consumers.

67% OF AD REQUESTSINCLUDE LOCATION DATA,BUT ONLY 34% OF THOSEREQUESTS ARE ACCURATE TOWITHIN 100 METERS OF THEMOBILE USERS LOCATION.

App developers know that sharing location data improves monetization, and they have

several methods of collecting location data. Some methods, such as GPS, are more diffi-

cult to collect consistently, but produce very accurate location data. Methods such as IPaddress lookup and registration data are much less accurate. Regardless of the source,

the data is typically translated into a set of latitude and longitude coordinates that are

passed to the advertiser. It is very difficult for the advertiser to assess the quality and

accuracy of the data without the help of a location expert.

LOCATION DATA IN THEMOBILE ECOSYSTEM

MOST RELIABLE

GPS satellites maintain a constant orbit around the

earth, sending signals to the ground allowing asmartphone to calculate location within a few feet

under optimal conditions.

A-GPS can be a battery d rain, so developers choose

other solutions. Additionally, weather and building

interference can reduce effectiveness.

LEAST RELIABLE

A-GPSAssisted Global Positioning System

1

3

Cell towers are typically three-sided with a transmitter

on each side. Location accuracy to within of a square

mile is possible when three towers are present andthere is no interference.

When a user has coverage from a single cell tower, or

even two towers, the location approximation can range

over many miles. Building interference can also

reduce accuracy.

CELL TOWERS

Its typical practice for an app developer to ask a user

to share their postal code or home city when registering

for an app. The app developer then pinpoints the centerpoint of that geographic region.

Real-time location data is effectively always wrong

for this type of location information.

USER REGISTRATION

2

4

5

A devices location can be approximated

using its IP address as assigned by the

network operator; however, in terms of

identifying the true location of the user

using standard network techniques,

its almost universally wrong.

IP

Nearly all Wi-Fi connection points have

been mapped to a location, so depending

upon the availability of Wi-Fi networks,

triangulation within 10 to 100 meters is

relatively easy.

The downside: Users are not always near a

network, or they may simply have turned off

the phones Wi-Fi.

WI-FI

Regardless of source used, location

data is typically translated into

latitude and longitude.



7/9

Accurate data means accurate tar-

geting. If advertisers are reaching

the wrong audience, performance

will suffer. Location also impacts

user experience. Most mobile cre-

ative involves some level of dynamic

content, which allows marketers to

incorporate local context into the

ads they serve. Poor location data

makes for a poor user experience.

Accurate location data impacts

performance in a variety of ways.

Preferred performance metrics in

mobile vary by brand, agency and

vertical, but marketers have contin-

ued the move away from CTR as the

defining KPI. Brands are increas-

ingly considering engagement met-

rics such as store visit lift, time-on-

site and post-click conversions.

LOCATION ACCURACYDRIVES PERFORMANCE

LOCATION IMPACTS TIME-ON-SITE

We found that time-on-site for mobile campaign landing pages improved dramatically forthe highest scoring location data as compared to the lowest scoring location data, providing

further evidence that location context plays a key role in consumer engagement.

GETTING CUSTOMERS TO THE STOREFor brick & mortar marketers, driving store visits is another typical KPI. We found that store

visitation rates (the lift in store visits from mobile advertising) increased substantially when

high-quality location data was used. Store visitation lift improved 30%51% when compar-

ing the use of top-tier location data vs. bottom-tier location data.

LIFT IN STORE VISITATION BY LOCATION SCORE TIER

RETAIL VERTICAL RESTAURANT VERTICAL

THIRD-PARTY REVIEW OF LOCATION ACCURACYThinknear has partnered with Placed, Inc. to validate the performance impact of accurate

location data on store visitation rates. Placed is an independent third party partner and

manages the largest opt-in mobile user panel on the globe.

INDEXED

LIFT

TOP TIERLOCATION SCORE

TOP TIERLOCATION SCORE

INDUSTRY AVGLOCATION SCORE

INDUSTRY AVGLOCATION SCORE

In working with Thinknear,

Placed has directly measured

a clear correlation betweenaccuracy of location and in-

store visitation. Thinknears

Location Score provides

a metric to advertisers

to quantify the quality of

location as it relates to their

mobile ad campaigns.

David Shim, CEO, Placed

1.10

1.00

0.90

0.80

0.70

1.60

1.40

1.20

1.00

0.80

INDEXED

LIFT

BOTTOM QUARTILELOCATION SCORE

INDUSTRY AVERAGE

TOP QUARTILELOCATION SCORE

45% LIFT FROMBOTTOM QUARTILETO TOP QUARTILE OFLOCATION SCORE

LIFT IN TIME-ON-SITE BY LOCATION SCORE

0.75

1.00 1.00

1.08

1.30

1.51



8/9

Location Score is the first step in providing the mobile industry with an

understanding of the importance of location accuracy and the impact on

marketers. The good news is that there is an enormous amount of high

quality location data available in the ecosystem.

Thinknear is focused on building the tools and platform needed to

ensure that brands have access to extremely accurate data with high

Location Scores. Better data correlates with higher conversions across

the metrics that matter most and the industry will continue to improve

and expand over time.

Marketers should focus on finding sources of high quality location data

and using location to its fullest potential to help brands connect with

consumers on their mobile devices. The results will include higher confi-

dence surrounding the targeting data and better performing campaigns.

Location Score was designed to help marketers build and deliver better

mobile campaigns. Transparency and measurement are key factors in

growing the mobile industry and Thinknear is committed to delivering

tools to improve mobile marketing.

THE FUTURE OFLOCATION ACCURACY

EVEN WITH THE LARGE AMOUNT OF INACCURATEDATA IN THE INDUSTRY, THERE IS AN INCREDIBLEAMOUNT OF HIGH QUALITY LOCATION DATAAVAILABLE TO MARKETERS.



9/9

Thinknear is a location technology company and full-service mobile advertising

network focused on delivering amazing advertising campaigns for agencies, brands

and consumers. Thinknears platform delivers the accuracy, scale and technology

required to effectively leverage mobile location data to power better consumer

experiences. In mobile, precision matters, and as a division of Telenav, Thinknear

leverages exclusive access to over 14 years of proprietary location data. To learn

more, please visit www.thinknear.comand follow @thinknearon Twitter.

LOS ANGELES

SAN FRANCISCO

NEW YORK

CHICAGODALLAS

Advertiser Contact Info

[email protected]

Media Inquiries

[email protected]

Twitter

@THINKNEAR

Copyright 2014 Thinknear by Telenav.

The Android robot is reproduced or modified from work created and shared by Google and

used according to terms described in the Creative Commons 3.0 Attribution License.

tnv location score index-q2 2014-300dpi

Documents