How Mobile Location and Behavioral Context Skyrocket Conversion Rates

2014 Skyhook Wireless Inc Follow us on 2014 Skyhook Wireless Inc Follow us on

INTRODUCTION

Context Data Enables New and Powerful Advertising Attribution

Introduction

How To Deliver Relevant Content Everywhere

How Context Data Increases Ad Inventory Value

TABLE OF CONTENTS

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Mobile advertising is about using the power of always-connected mobile devices to create stronger connections between advertisers and their audiences. Mobile devices captivate consumers because they augment and enhance their lives, prompting them to openly share their location and social data. Advertisers can use this individual-level data to bolster marketing strategies and messages, but they need to know where to start.

Accurate location integrated with layers of venue and demographic context is the holy grail for advertisers. The aggregation of data from a mobile device allows advertisers to gather context on their audiences, enabling better targeting for brands, more relevant content for consumers, and higher value ad inventory for publishers. True context data delivers higher profitability for the same ad impressions. Advertisers can improve user engagement by reaching their audiences with relevant, higher value content where and when they are ready to make a buying decision.

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2014 Skyhook Wireless Inc Follow us on

Context Data Enables New and Powerful Advertising Attribution

Chapter

CHAPTER 1 CONTEXT DATA ENABLES NEW AND POWERFUL ADVERTISING ATTRIBUTION

Online impressions and transactions are directly correlated and easily measurable,

making digital a preferred channel. Savvy advertisers always measure ROI using online

and mobile click-through and conversion rates. They measure ad success by attributing

transactions to page views, impressions and specific actions taken. And naturally they

want to be able to look at cost per conversion across campaigns, channels, creative,

message, location and more.

The challenge is that attribution is messy in a multi-device, cross-channel world. People

use their smartphones while watching TV, shopping, and even working. Their attention

is fragmented. Mapping the myriad of messages that contribute to a buying decision

is impossible, and early influences rarely receive credit for driving eventual purchases.

Advertisers cant simply pay attention to the last impression a consumer sees.

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1. ImpressionBrands and agencies buy ad impressions from their target market

2. LocationThe network or exchange serving the ad validates when an audience member who has seen an ad goes to the advertisers location.

3. AttributionThe advertisers pays more for the conversion.


Advertisers miss these multi-channel

conversions, and often incorrectly

attribute their overall ROI to the last

message that was seen.

How Location-based Context Strengthens Advertising CampaignsAdvertisers can now connect online

and offline data to more enable a

more accurate view of their spending

attribution for campaigns. Mobile

technology enhanced by geofencing

allows advertisers to attribute when

a consumer sees an online ad to

the resulting offline transaction.

Conversely, the same technology can

enable attribution of offline ads such

as billboard and out-of-home displays

to offline and online transactions. This

detailed insight on a users shopping

patterns is based on the correlation

between where and when they see an ad

and their purchase behavior afterwards.

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Geofencen. A virtual perimeter around a physical area that triggers an action when a users device enters or leaves the area.

Example: Mobile apps are building geofences around retail locations in order to alert their users about nearby deals.

Skyhooks Infinite Geofences n. Infinite virtual perimeters around physical areas, regardless of device limitations such as those on Android (100 geofences) and iOS (20 geofences). Infinite Geofences from Skyhook go beyond latitude, longitude and radius with custom polygon geofences.

How Geofencing Helps to Strengthen AttributionWhen a mobile user enters a geofenced area, even when their device is inactive, the

monitoring app is awakened and notified of the geofence trigger. With this always-on

technology, advertisers can discover when consumers are within view of an offline ad and

when they enter a store. The reach and precision of background geofencing enables the

attribution of real-world activities to online, offline, and out of home calls to action.


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For example: A man at Boston Logan airport

sees a billboard ad in his terminal, and

a backgrounded application records an

impression when he enters the viewable

area. The application now knows to monitor

geofenced stores featured on the billboard.

This works whether he visits a store in

Boston or near his home in Chicago, and

the billboard advertiser receives credit for

driving a real-world conversion.

If a brands mobile experience is tightly

integrated with their ecommerce site, they

can also attribute offline impressions of their

advertisements to online sales. For instance,

a large retail company like Bloomingdales

purchases a billboard ad on a major

highway. When a Bloomingdales app user

passes the billboard, the mobile app records

that she entered the geofence around the

billboard and connects that information to

her subsequent online purchases.

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How Context Data Increases Ad Inventory Value

Chapter

Thanks to advances in mobile and geofencing technology, advertisers can now attribute their digital media spend to offline transactions. This attribution makes media agencies more accountable for their budgets than ever. And it opens the door for advertisers to make better decisions based on more accurate cost per acquisition metrics.SchneidermikeVP of MarketingSkyhook Wireless


CHAPTER 2HOW CONTEXT DATA INCREASES AD INVENTORY VALUE

Building Audience Personas Advertisers have the ability to intelligently build contextual personas of their audience

based on their real-world activities. Skyhooks solution builds these personas by combining

census demographic data--like income level, education, gender, age and ethnicity--with

behavioral patterns based on where users go and when. These personas provide powerful

insights into affinities and intents, enabling advertisers to enrich their inventories with

contextual data on audience lifestyles. For example, a user who visits beauty supply shops

and high end clothing stores and has an income of over $200K is classified as a Luxury

Shopper. The publisher who builds that profile can command increased CPMs for ad

impressions to that highly desirable segment, and advertisers can target those users with

relevant messages to achieve increased conversion rates.

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BEERBEER

BEERBEER

Venue: Zicos4000 Warner Blvd, Burbank, CA 91522Lat. 34.149898 Long. -118.341017

Category: Food & DrinkSubcategory: RestaurantsVenue type: Italian Restaurant

Persona details:

?

Anonymous Person Male, age 25-30 Sports fan: User who shops at sports retailers and visits

stadiums and arenas after

work hours.

Building Venue ProfilesThe more data advertisers have about a location, the more they know about who lives,

works and visits there. Skyhook aggregates anonymous consumer personas into layers

of context assigned to areas and venues. Over time, as Skyhook processes more location

requests, it refines its knowledge of a venue. Venues take on the attributes of users who

live, work, shop, eat and drink at that address. These venue profiles offer advertisers an

opportunity to charge a premium for audiences based on their precise, venue-level location

and the associated interests and activities.

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BEERBEER

Personas

Sports FanSports Fan

Personas

Luxury Shopper

Personas

Business Traveler

Anonymized Data Protects Consumer PrivacyTracking consumer behavior is always a sensitive topic.

Skyhook builds anonymized personas without ever using

personally identifiable information (PII). This method empowers

advertisers to access powerful contextual data about segments

of their audience without violating individual privacy.

By cross referencing consumer personas with venue profiles,

advertisers can have contextual data on where users are and

when. This data can be applied to media buying algorithms to

increase the value of ad inventories. This level of audience and

venue knowledge enables advertisers to deliver more valuable

advertising at a higher CPM and with greater conversions.

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Personas provide powerful insights into affinities and

intents, enabling advertisers to enrich their inventories with aggregate contextual data on audiences segmented by lifestyle.

PersonasAnonymous

How To Deliver Relevant Content Everywhere

Chapter


CHAPTER 3HOW TO DELIVER RELEVANT CONTENT EVERYWHERE

Because users carry their mobile devices at all times, publishers can easily get to

know their audiences based on where they go and what they do. We are not far from

a future in which content is constantly adapted based on user context. This rich

contextual data on users enables publishers to know the interests, activities, shopping

patterns and mobile behavior of their audiences at a given time and place. Armed

with that data, publishers can make smarter decisions about what content will most

likely interest and engage their readers. A highly engaged audience means more ad

impressions to serve, and a highly segmented audience is an opportunity to monetize

with targeted advertising.

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As Jim visits his local Microshack Electronics store, an ad network running on his phone detects that he is inside a geofence.

The ad network applies the persona of Electronic Shopper to Jims phone.

When Jim enters another geofence near a Super Buy location, the ad network delivers a relevant Super Buy ad to Jims phone.

Jim, intrigued by the ad content and the convenience of a store nearby, decides to go to Super Buy to make a purchase.

Super Buy Electronics uses the same ad network to target Electronic Shoppers who have visited a competitors location within the past week.

TARGETED AD

NEWSLY

NEWSLY

NEWSLY

When the consumer receives advertising that will

guide them to make smart shopping decisions,

they will be increasingly loyal and valuable to

the brand. For instance, Amazon can deliver

different marketing messages to users based on

their persona. Amazon mobile app users with a

College Student persona are ages 18-23 who

often visit a college campus and spend time in

college related venues. App users with a Traveler

persona visit airports, hotels and train stations.

Amazon can feature products based on users

personas. College Students see highlighted text

book products and Travelers see highlighted

travel book products.

This gives publishers a huge opportunity to create

engaging content that their users will click and

share. This engagement makes persona-savvy

publishers more effective businesses.

Student Loans Hit All-time High

Diamonds are Back in Style

Tech Company Over-Valued in Acquisition

Best Cities For New College Grads

2014 Celebrity Fashion Trends

Interest Rates at All Time Low

Indie Band Launches New Album

Best New Restaurants of 2014

10 Workplace Faux Pas To Get You Fired

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A highly engaged audience means more ad impressions to serve, and a highly segmented audience is an opportunity to monetize with targeted advertising.


Case Study: CardStarCardStar is a mobile app where users store all

of their loyalty cards and receive targeted offers.

The app uses Skyhooks Infinite Geofencing

to improve user experience and increase the

relevance of offers by monitoring for nearby

stores even when the app is backgrounded.

CardStars UI brings loyalty cards from nearby

stores straight to the home screen for easy

accessibility, and the app is able to preload

offers so that they can be delivered to busy

consumers in real time. This is an example

of geo-targeting at scale and driving offline

conversions.

Cardstars implementation of Infinite

Geofencing increases user engagement,

resulting in a significant lift in average session

length, an increase in daily active users and

growth in sessions per day. Now more users

open the CardStar app more often and spend

more time engaging with it. The geofences

around the stores can show whether the offers

on the CardStar app are driving conversions.

These unique capabilities offer a monetization

path for CardStar and similar deals and

loyalty applications in the form of hyperlocal

advertising with sponsored offers.

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Geofencing gives insight on new attribution metrics such as billboard conversion rates,

digital to foot traffic conversion rates and vice versa, enabling ad networks to take credit for

cross-channel conversions. This full picture of ROI allows ad networks to understand where

impressions are coming from in different channels and how those impressions are driving

traffic to stores and online. Mobile location and geofencing technology radically extends the

reach of mobile targeting and visibility into ad conversions.

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Mobile phones are central to the shopping process and consumers expect to be able to find and access local opportunities at the touch of a button. This enhanced version of CardStar gives users that experience with built-in shopping lists and location-aware services that serve up nearby shops and offers.

Andy Miller, Chief Innovation Architect, Constant Contact


Skyhook is the worldwide leader in location positioning, context and intelligence.

In 2003, Skyhook pioneered the development of the Wi-Fi Positioning System to provide

precise and reliable location results in urban areas. Today, Skyhooks Precision Location

provides positioning to tens of millions of consumer mobile devices and applications.

FOR MORE INFORMATION, VISIT: WWW.SKYHOOKWIRELESS.COM

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CONCLUSION

People pay attention to advertising only when it is helpful and interesting to them. In order to find out what content will impact a consumers purchasing decisions, advertisers must get to know their audiences on a personal level. With location technology, advertisers can target and reach their audiences based on where they are, where they have been, and where they are going. Building personas and venue profiles enables publishers to customize content and speak directly to the lifestyle of their audiences. Doing so ensures that their content resonates on a personal level, increasing ad inventory size and value, leading to greater profitability for the whole ad ecosystem.

How Mobile Location and Behavioral Context Skyrocket Conversion Rates

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