Why does mobile-originated data matter most in advertising?

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Why does mobile-originated data matter most in advertising?
Andrew Darling

According to eMarketer, within the next year, U.S. mobile ad spend will reach $50.84 billion – about twice as much as the total U.S. desktop ad spend. Meanwhile, mobile ad spending in the U.K. continues to show strong growth and is expected to rise 35 percent this year to £4.58 billion ($7 billion. That’s a higher figure than eMarketer forecast last year and marks the first time that that mobile has overtaken TV ad spending in the country.

And high levels of mobile adoption have helped advance Asia-Pacific’s mobile advertising market. For the first time, mobile will account for over half of all digital spending in the region in 2016. eMarketer expects mobile internet ad spending this year will grow by 54 percent to total $38.13 billion. Strong growth will continue through the end of the forecast, when Asia-Pacific’s mobile internet ad market will more than double, reaching $88.46 billion.

Yet there seems to be a disconnect. Many brands and marketers are still hesitant to think and be mobile-first. This hesitation may be a costly one because without mobile, there is no mobile-originated data.

The truth is, many of today’s marketers – an alarming 91 percent, according to eMarketer – are still dependent on cookie-based tracking that is probabilistically matched to identify mobile users.

But cookie-based data is just simply not good enough to garner high-quality audience personas in the mobile world.

So there is only one question left: What can mobile-originated data do for brands that cookie-based data can’t?

Mobile-originated data can produce a wealth of insights that inform and drive campaign performance and results. Telco, OS, and Device level data is one aspect of this and these datasets can be used to inform MNO-specific brand or loyalty campaigns, app and OEM campaigns etc.

However, we believe that location is most valuable mobile data currency.


Know the audience

Most brands rely on cookie-based tracking to identify and create consumer profiles. The problem is, that cookies have been, and will continue to be, riddled with flaws. Unlike cookies, mobile has unique device-IDs, allowing them to be easily identifiable across devices.

By using these device IDs, marketers are able to ingest important information that is gathered through relevant data points such as location, transactional, in-application and behavioural signals. These specific identifiers allow marketers and advertisers to get a complete and accurate multi-dimensional profile of each ideal consumer.

Reach consumers down to each individual mobile moment

According to a recent study by Deloitte, the average person checks his or her phone 46 times per day – most often while shopping, dining out and during leisure time.

This affinity towards being always on has completely changed the brand-consumer relationship.

Consumers are crossing paths with their favourite brands more than ever and brands that pay attention to these moments have a unique and highly effective opportunity to engage with their ideal consumer, in real time.

By ingesting real-time location data that arises from consumers’ mobile journey, brands have the opportunity to evaluate each mobile moment, choosing to show ads only when the moment is right, making each moment relevant and actionable.

Location data provides a path to the future

But this is only part of the jigsaw. Mobile-originated data, like historical location behaviour, provides a much more contextualised picture about consumers’ real lives and their preferences. And it can also provide a sign post to where they are probably going to turn up in the future.

The past is a powerful, powerful aspect of our lives. The relationship between the past, present and future shapes our behaviour in the world. And one of the most powerful ways of making sense of this relationship is by understanding that the places people have been helps to predict their future intentions, and therefore influences the marketing messages they could be receptive to at a later time.

One of the big differentiators between online and mobile is that in mobile, location plays a much bigger role. Location tells much more about a user than anything else. Location helps to better understand users, put them in categories, and categories allow advertisers to better understand the categories of audiences that they want to target.

Thanks to smartphones and good data management techniques, the ability to analyse that location relationship has become turbo charged – creating data touchpoints with consumers’ lives that go far beyond simple audience profiling. Using historical behaviour – both digital and place and time – advertisers now have the ability to predict the future.

Sort of.

Because the future is not completely predictable. Does this mean there is no point in thinking about the future?


The past is indicative of the future

Some behavioural processes reflect large trends that are not so unpredictable. Mobile devices provide a rich source of contextual information for understanding customers on a personal level.

Understanding users’ historical location behaviours is a powerful contextual means for advertisers to do more – re-target their audiences at a later date across multiple screens and platforms, including OOH, TV and Social.

Contextually-driven dynamic data has been an industry utopia for years but now the technology and data is available, there is no good reason why it should not be the reality. Mobile is at the centre of any successful programmatic advertising strategy; not taking it seriously will not only damage the overall customer experience, but negatively impact the bottom line.

Ability to be creative

Once the harder part – the ideal consumer and ideal timing – has been figured out, brands must move on to the next step: the actual ad.

Today’s brands are at the mercy of the consumer – and consumers demand creativity.

From non-optimised ads to ill-fitting banner ads, it is no secret that consumers are fed up with intrusive advertisements.

This frustration is one of the main reasons why one in three mobile users now employs ad blockers. To combat this, brands must be creative and step outside of the traditional definitions of advertising – for example, native advertising.

Overall, it is important that brands realize that there has been a huge shift in the industry.

Consumers are no longer passive players in the advertising industry. They can and will cut you out of the conversation if your too intrusive or irrelevant.

But if brands use mobile-originated data to create insightful, relevant and targeted messages, the consumer-brand relationship will continue to grow to new heights.

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Andrew Darling is Communications Director at Blis. He is responsible for Blis’ global communications and PR activities, as well as marketing operations in APAC. Andrew is a seasoned tech marketing and communications expert, Chair of the IAB SG Mobile Committee and former Telecoms, Media and Technology journalist.
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Question 1: How long have you been at RSi and what is your role?
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Question 2: How does RSi help solve marketer challenges?
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Question 3: What benefits does the partnership with Blis bring to buyers as well as the adtech ecosystem?
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Question 4: What are use cases for the Blis + RSi partnership? (Please provide a few examples from different verticals).
If you are a shopper marketer, maximizing your budgets, understanding performance of your marketing tactics and generating key learnings from those marketing tactics are tasks that are essential to your business.

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For existing products, Blis campaigns using Ansa targeting can reach a targeting efficiency of 2:1 vs. campaigns that do not use Ansa store-level targeting thereby ensuring that every dollar is spent driving sales to your most important retailer locations.

Blis campaigns optimized with Ansa typically identify and heavy up investment around 16% of stores that are trending significantly ahead of the average store during a campaign and identify and decrease investment around 14% of stores that are trending significantly behind the average store, therefore ensuring that your budget is being optimized surrounding stores that are over-performing during a given campaign.

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Question 6: If there was one piece of content you think every marketer should read, what is it?
(Other than this blog post of course!)

Think with Google and Facebook IQ are two fantastic sources of resources. Articles, trends, case studies, POVs, insights, etc… pretty much everything you need to read to keep you up-to-speed in this very fast-paced environment.

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Win Over New Customers

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Mobile devices provide the answer. By revealing where consumers go, mobile location data can tell brands which consumers spend their time browsing similar products at a competitor’s store. Let’s say Target wants to reach out to consumers who usually shop at Walmart. They can use location data to identify—then target—those who frequently visit the competitor yet still live near a Target store.

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Keep Them Interested

What’s the first thing you do when you wake up in the morning? For most of us, it’s look at our phones to turn off our alarms before checking the weather and scrolling through our Twitter feeds. And throughout the day, we continue to stare down into the faces of our mobile devices: checking the news on the train, sending an email between meetings, or watching videos from our living room sofas.

In order to engage consumers on the devices we use day in and day out, advertisers will need to serve ads that make sense for the consumer depending on where they are during the day. To do this, advertisers must first ask the question: What do consumers want to see on their mobile devices and when? Consumers spend a third of their time online watching videos, for instance, but they aren’t going to watch a 30-second video ad while walking down the street.

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Inspire Loyalty

How can brands make sure they retain the new and existing customers they’ve worked so hard to gain? They must first recognize and show appreciation for their most loyal customers.

Most advertisers identify loyal customers by looking at newsletter subscriptions and online purchase histories, but they may be missing other valuable customers who prefer to shop in stores. By identifying devices that frequently visit a brand’s store location, advertisers can make sure they are recognizing—and thanking—all their biggest fans. When an existing customer comes into a store a certain number of times, for example, advertisers can deliver a thank-you message—perhaps offering the loyal customer a generous coupon to redeem in-store.

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Interested in understanding how to connect mobile experiences to physical stores? Or how mobile can be the extension of a retailer’s store? Maybe you’ve wondered about the new Cost-Per-Visit metric? Look no further. Blis’ location data experts will be answering these questions on a weekly basis over the next few months in our ‘Retail Series’ which aims to equip retail marketers with the right insights and top tips to stay ahead of the game.

Following its decision to buy e-commerce company Jet.com last year, Walmart recently agreed to acquire Bonobos, a retailer with a strong online presence and generous shipping policies. If these moves weren’t sign enough that the physical and digital retail worlds are merging, Amazon’s acquisition of Whole Foods is the ultimate wake-up call.

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Once they’ve gotten a clear and thorough understanding of their ideal audiences, how can retailers use mobile devices to drive foot traffic? Proximity targeting—delivering ads to consumers when they come within a certain distance of a store location—is a common approach. Retailers can maximize the power of proximity targeting by crafting unique and imaginative creatives.

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Sometimes, targeting consumers when they are walking by a store may be a little too late. A QSR wanting to boost its 10 am breakfast crowd, for instance, may want to target consumers when they wake up around 7a and begin planning their day. Otherwise, the consumer has most likely already made their breakfast choice.

While there is no one-size-fits-all solution for retailers looking to connect with consumers and drive in-store sales, a strong mobile strategy is key. As the digital and physical worlds continue to blend, retailers must harness the insights and capabilities of mobile to reach their unique brand objectives.

Tune in next week to read all about how mobile is fast becoming the extension of a retailer’s store.

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