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1 NINTHDECIMAL measurement
2 TABLE of CONTENTS What Is Offline Attribution? Why Is This a Challenge for Marketers? Enter: Location Data Where Does Location Data Come from? Understanding Methodologies What Is NinthDecimal s Location Conversion Index? Why Is LCI the Industry Standard for Measurement? How Does It Work? 6 Myths of Measurement Actionable Learnings NinthDecimal Verified Partner Program 2 3 WHAT is OFFLINE ATTRIBUTION? It s the ability to understand whether or not your media campaign is driving foot traffic and/or sales to a physical location. Whether your message ran online, on mobile, TV, or another medium, how can you accurately attribute incremental foot traffic or sales to your ad dollars?
3 WHY is this a CHALLENGE for MARKETERS? It s one thing to think your campaign worked, but it s another to know it. Traditional measurement tactics like CTR, time on site, and brand surveys fail to provide insight into actual conversions. And with all the money being spent on advertising (a projected $220B by 2018*), marketers are thirsty for a metric that reflects the true impact of their advertising dollars. (*statista.com, 2016) As marketers place a greater emphasis on targeting people, not devices, going beyond simple mobile measurement and understanding customer behaviors across screens is a must. emarketer, % of retail sales still take place in-store -MasterCard,
4 ENTER: Location DATA Why use clicks as a proxy when you can actually measure the in-store foot traffic driven by your advertising? With location data, you can optimize and measure your campaigns across the entire campaign lifecycle. Targeting Reach people who have been to or are currently in a location Combine location data with other offline and online data sets for more comprehensive targeting Programmatically target based on location Planning Plan omni-channel media mix based on past visit behavior Use location data to inform new store locations Understand competitive customers Optimization Optimize campaign in-flight based on in-store conversions Receive feedback more quickly than traditional spend data Compare performance across media, creative, etc. to optimize future campaign strategies Measurement Measure increased foot traffic to stores due to ad campaign Gain insight into in-store conversion rates do customers often visit without making a purchase? 6 7
5 WHERE does LOCATION DATA come from? 80% of time spent on your phone is in app.* Apps pass back varying degrees of location data when Location Services is enabled. (*emarketer, 2016) With Location Services on, a smartphone is able to identify where a device is located at any given moment. These services are controlled by the user and can be set to share data never, always, or only during app usage. Location signals are shared with companies like NinthDecimal and can come from first party apps or ad impressions. Impression-based data can come through even if an ad call is not served. There is a major difference between persistent and intermittent, also known as bid-stream, data. Persistent data, often collected through first party apps, gathers ongoing location signals from a small set of smartphone users. Barring interruptions from service loss, airplane mode, or battery death, persistent location data is collected consistently throughout the day. coverage of the US population using 1% persistent data Intermittent data, on the other hand, is collected at the moment of ad request. With thousands of partner apps making ad requests at any given time, the sample size for intermittent data is incredibly large and provides the breadth and depth needed for a granular analysis with statistical significance. coverage of the US 70% population using intermittent data Location Services data is comprised of several signals: Cell Towers GPS Wifi 68 9 Beacons Device Hardware (gyroscope and accelerometer) The best of both worlds NinthDecimal uses a combination of persistent and intermittent data to provide the most complete understanding of physical world behavior. p i + =
6 Understanding METHODOLOGIES Location data can be collected for measurement in two ways: Impression and Panel Impression Based: Location data collected across the entire mobile ecosystem at the moment of ad call Pros Massive scale means sample 100x is always representative of US population unique users Large sample available for dynamic, 1:1 matching between than the leading exposed and control groups panel Passive, unbiased measurement Cons Cached data Inbound location data needs to be filtered and scrubbed Survey Where would you like to check in? Starbucks Walgreens Stapleton s Tavern Vision Plastics Panel Based: Location data collected by one app, or a handful of apps, for a small group of users (less than 1% of US population) Pros Verified 1 st person user/registration data Persistent view of app users Cons Limited scale means a small panel-to-target audience match rate and not enough users for a closely matched control group Heavy modeling needed to reflect general population Tracking is incentivized, which skews behavior and reporting Confirmation survey relies on human memory Selection bias: Is your target audience reflected in the people who use this app?
7 WHAT is NINTHDECIMAL S LOCATION CONVERSION INDEX TM? NinthDecimal s Answer to the Marketer s Measurement Challenge: Location Conversion Index (LCI TM ). NinthDecimal s Location Conversion Index (LCI ) is the industry s first return on investment (ROI) metric that measures actual incremental increase of in-store visits. LCI helps marketers understand how their digital advertising influences consumer behavior on the go. LCI is the industry standard for measuring offline conversions. Our proprietary solution measures consumers physical world behavior and attributes incremental store visits directly to advertising campaigns on digital, TV, direct mail, or all of the above helping marketers determine campaign ROI and discover unique insight into consumers path to purchase. Precision matters in measurement; with a scale reaching over 70% of all mobile users per month, we can understand foot traffic with statistical significance of the industry s largest measured audience. Exposure Foot Traffic Measurement 12 13
8 WHY is LCI TM the INDUSTRY standard for MEASUREMENT? Scale of Data: Never worry about the representativeness of your measurement sample. We have the largest audience measured in the industry with 100x greater scale than the closest panel. OVER 2/3 of All Smartphone Users 1.5T+ Data Points/Month Strength of Methodology: Identify which visits were incremental and actually driven by the campaign. Measurement of incremental lift in store visits using matched control & exposed audience groups for the most accurate ROI attribution. Omni-channel Capabilities: Measure and optimize the campaign across the media mix. Comprehensive data from multiple platforms provides effective measurement of the user s behavior across mobile, online, and offline channels Measurement Partners Precision of Data: Know when a customer actually visited, not just when they re nearby. Our proprietary technology platform delivers the industry s highest level of accuracy and precision in physical world data, for when you want to measure someone visiting your store. Ease of Use: Gain weekly insights with a simple dashboard login. Reporting dashboard shows weekly results by tactic, creative, device, and more. Our team of data experts is standing by to help you optimize and conduct custom analysis with ease
9 HOW does it WORK? 1. Audience is exposed to advertising NinthDecimal captures ad exposure, through what medium and when, then maps this exposure to a person. 2. Store visits are monitored before, during, and after campaign With 13 months of historical visit behavior, NinthDecimal can determine the natural visit frequency for both your exposed audience and unexposed audience at any given store location. This accounts for seasonality and outliers as we calculate campaign performance. Exposure Exposed Control Insights for media optimization We can compare LCI across medium, partner, creative, audience, and more. This gives advertisers the power to optimize future campaigns and make better budgeting decisions. 3. Incremental lift is calculated Each individual that was exposed to the campaign is matched 1:1 with an otherwise identical individual who was not exposed. Then, we compare changes in store visit behavior for each group to accurately calculate incremental lift in other words, how many visits during the campaign wouldn t have occurred naturally
10 6 MYTHS of MEASUREMENT the TRUTH It s impossible to tell whether a person actually visited a store, or was just nearby. Some estimates show that 60% - 80% of location data can be inaccurate, which is why NinthDecimal s platform contains several mediation layers to filter out imprecise data (like centroids and data touched by the blue dot effect ) from the billions of signals we receive each day. We then process the data inside the drift zone, rather than using a tile-based approach, to more precisely contextualize the location data we see. The sample size is too small to extrapolate measurement studies to my full customer base plus, isn t there a selection bias? Location based measurement is not as actionable as sales data. the TRUTH Instead of relying on a selfselecting panel, NinthDecimal uses an impression-based approach that provides massive scale. Because of this scale, we can find 1:1 control-to-exposed matches for hundreds of thousands of people, making your measurement results both trustworthy and actionable. the TRUTH Location data complements purchase data by giving marketers more insight into the customer s full path to purchase. the TRUTH It s too much of a hassle to set up a It doesn t have to be so hard! measurement study I m NinthDecimal measurement already swamped with studies are architected to just running media! integrate seamlessly into advertising campaigns using existing digital media operations paradigms. We simply provide a lightweight, 1x1 LCI Measurement Pixel that is fired on any ad call to which it s added. the TRUTH Separate studies are required for each medium, which makes omni-channel measurement all but impossible. Through device and household matching, NinthDecimal can actually provide LCI measurement across digital, television, and other channels. And this measurement isn t siloed; we can also look at the overlap of all channels (e.g., how individuals who were exposed to a mobile ad and television ad behave differently). Partners are only capable of measuring their own media. the TRUTH NinthDecimal has verified more than 200 partners in the space (and counting!) and can measure media across any of them
11 Actionable LEARNINGS Brands and agencies can access NinthDecimal s LCI measurement through a self-service dashboard, and after the campaign you ll receive a full report with even more insights into your audience and campaign success. Desktop Mobile/Tablet TV Mobile/Tablet & TV Mobile/Desktop & TV Our measurement solutions allow the advertiser to know what s working and what s not. With these insights, you ll learn: Location Visits Graph Table $ $ $ $ $ $ $ $ $ $ $ The types of media and media mixes that drove the most visits The types of people who visited and which of your competitors they frequent The cost per incremental visit Where people go before and after they visit your store Which locations saw highest spike in traffic Other measurement features related to your campaign 20 21
12 NinthDecimal verified PARTNER PROGRAM Of our Verified Partners, 8 are in the top 10 media properties and another 8 are in the top 9 DSPs.* (*according to Forrester and comscore, 2016) To learn more, click here Verified Partners measuring foot traffic across the entire ecosystem are cross-device certified. We measure the entire ecosystem so you can use almost any media partner We support cross-device and omni-channel measurement Billions of devices measured Hundreds of LCI TM reports delivered to date QUESTIONS? We re here to help. LCIHotline@ /measurement 22 23
13 www.
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