New Consumer Mobility

Transcription

1 The New Consumer Mobility Five Changes to Master for Digital Success

2 1 Advertisable Moments Introduction The MaxPoint Point of View on the New Consumer Mobility The new consumer mobility means the ability of consumers to work, play, and shop online, anywhere, anytime, thanks to the ubiquity of mobile devices, cellular broadband, and Wi-Fi. MaxPoint has produced this report for CPG marketers to help you understand and adapt your digital advertising strategies to this new reality so that you can reach your goals of driving more shoppers to stores and generating measurable incremental sales. Successful advertising in this era of consumer mobility hinges on three factors: It starts with having the right intelligence to define your marketing target. Location is a critical new type of intelligence not just where you are at a given moment, but what your whole location history tells us about who you are. But a targeting strategy is only as good as its execution. Great execution means being able to define and find as many highpotential consumers as possible, wherever they are physically and digitally, across all of their devices. And you must be able to close the loop with measurement and insights to determine the success of what you did. Measurement needs to include consumer response offline where most sales and foot traffic still happen as well as online. 1

3 In the new consumer mobility: 1 Advertisable moments exist in unexpected places page 4 2 Targeting must adapt to multi-device usage page 17 3 Location is not just about where you are, but who you are page 26 4 The new consumer journey demands greater flexibility page Measurement and insights benefit from new data streams page 49

4 Executive Summary What s Changed What It Means Recommendations Advertisable moments exist in unexpected places. Targeting must adapt to multi-device usage. In the new consumer mobility, there is no single equivalent to primetime TV hours in the living room. Advertisable moments are everywhere, in a wide range of contexts. The new consumer mobility requires new mechanics for device mix optimization, cross-device intelligence integration, and cross-device execution. Don t operate in silos by device type. Prioritize ideal consumers over ideal moments. Leverage contextual insights about advertisable moments to design more relevant and impactful campaigns. Use online activity across all devices (not mobile activity alone or cookies alone) to identify the shoppers most likely to make incremental purchases. Reach those shoppers wherever they are, across all devices. Location is not just about where you are, but who you are. The new consumer journey demands greater flexibility. Location is always relevant both the shopper s home location and the locations they visit because it tells us about their lifestyle, where they shop, and more. The customer journey from awareness to consideration to purchase can now happen in a digital second or it can require multiple online and offline touchpoints to achieve conversion. Make sure your location-based ad targeting employs the latest highprecision technology. Expand your thinking about location-based targeting beyond geofencing to more sophisticated opportunities that leverage location history. Use location in combination with other layers of both online and offline data as part of your targeting strategy. Incorporate the latest mobile activities and insights into every stage of the customer journey. Design customer mobile interactions that meet the new expectations for a flexible, friction-free, and personalized experience. Organize for speed and flexibility so you can quickly deliver relevant messages when new opportunities arise. Measurement and insights benefit from new data streams. Physical location history is a powerful new data stream for measurement and shopper insights, particularly when combined with online metrics and in-store sales data. Focus on measuring conversions mostly in sales, but also in the intermediary steps correlated with sales, such as store visits and coupon downloads. Instill a test-and-learn discipline across all of your digital marketing that leverages the latest foot traffic and cross-device data streams. 3

5 1 Advertisable Moments Exist in Unexpected Places 4

6 1 Advertisable moments exist in unexpected places In the new consumer mobility, there is no single equivalent to primetime TV hours in the living room. Rather, advertisable moments are everywhere, in a wide range of digital and physical contexts beyond the original context of browsing the web on a desktop. 5 Additional aspects of context, such as location, will be discussed later in this report.

7 1 Advertisable Moments Setting the Stage Mobile now dominates both consumers online time and advertisers spending Daily Internet Usage by US Adults 1 Percentage of US Digital Media Spend 2 In 2015, US adults spent about two-thirds of their online time on mobile devices and one-third on desktops. 35% As recently as 2014, 61% of digital ad dollars flowed to desktops. $28M In 2016, 63% of US digital ad spending will go to mobile, rising to 73% by $36M 37% $45M 27% 5.5 hours 65% 61% 39% 63% 73% 6 Mobile* Desktop 1. comscore, December emarketer, March *Mobile = smartphone + tablet

8 1 Advertisable Moments Setting the Stage All age groups now spend more than half of online time on mobile devices, with a strong skew toward smartphones Percentage of Online Time by Device Type and Age 1 Millennials aged spend 66% of their online time on smartphones. Gen Xers spend 54% of their online time on smartphones. Boomers aged 55+ spend just 37% of their online time on smartphones. 25% 35% 46% 37% 7 9% 46% 66% 54% 11% 17% Age Age Age 55+ Smartphone Tablet Desktop/Laptop 1. comscore, December 2015.

9 1 Advertisable Moments But desktop is not dead Setting the Stage 85% of American workers use a 73% of all US adults own a desktop 35% desktop or laptop computer or laptop computer, including at work and/or at home. 1 78% of those aged of total online time is still spent in desktop browsers. 3 8 Smartphone/Tablet Desktop/Laptop 1. Pew Research, January Pew Research, July comscore, December 2015.

10 1 Advertisable Moments Setting the Stage And there is still a large audience on the mobile web, though the total time spent in mobile apps is larger In terms of audience size, mobile web is bigger and growing faster. But in terms of time spent, mobile app is bigger and growing faster. Audience Size 1 Time Spent 1 Mobile Apps Mobile Web 8.8M Mobile Apps 3.3M Unique Visitors 87% Share of Mobile Minutes Spent Mobile Web 13% 9 61% Percent Change Over Prior Year +42% 1. comscore, June Millward Brown Digital, % Percent Change Over Prior Year +21% 21% of smartphone users access their browsers at least once a day, spending an average of 31 minutes in total. 2 Mobile web usage, like desktop browsing, is typically distributed across many sites, whereas mobile app usage tends to be limited to 10 or fewer apps. 2

11 Advertisable Moments Device Usage 1 In advertisable moments, as in total online time, mobile exceeds desktop Think mobile first when designing digital ads and supporting content, like landing pages. Percentage of Online Time by Device Type 1 Percentage of Advertisable Moments by Device Type % of all online time is spent on mobile devices. Smartphone/Tablet 1. comscore, December MaxPoint, April % Desktop/Laptop of the 60 billion advertisable moments analyzed daily by MaxPoint are on mobile devices.

12 Advertisable Moments Device Usage 1 However, device usage and other aspects of context can vary significantly across consumer segments Ali from Atlanta Metro Suburban Families Sue from Missouri Rural Families Maria from LA Urban Starters Jae from New Jersey Career Professionals Aged Average income of $78K Aged 50+ Average income of $64K Aged <35 Maria from LA Urban Starters Average income of $31K Age mix Average income of $112K 29% Hispanic Suburban 55% have kids 91% Caucasian Most rural 33% have kids 61% Hispanic Most urban 47% have kids 77% Caucasian 11% Asian Urban 78% do not have kids 11 Mostly Mobile Mostly Mobile Mobile/ Desktop Mostly Desktop

13 1 Advertisable Moments Device Usage Think mobile first rather than mobile only Don t operate in silos by device type integrate your media planning and let your consumer target and marketing goals drive execution. While most Americans now have a mobile first mentality, there is enough variation in device usage across consumer segments to advise against a mobile only approach. Percentage of Advertisable Moments by Device Type 1 Suburban Families average income Urban Starters younger, below average income Career Professionals urban, above average income, multigenerational, no kids 39% 46% 64% 28% 10% 51% 51% 46% 8% 8% 12 of Suburban Families advertisable moments are on mobile devices. Rural Families are similar, but with 12% of their advertisable moments on tablets. 61% 54% 36% Smartphone of Urban Starters advertisable moments are on mobile devices, and 46% are on desktops. Tablet 1. MaxPoint, April Desktop/Laptop of Career Professionals advertisable moments appear on mobile devices, with 64% on desktops, presumably because they re online at work a lot.

14 1 Advertisable Moments Day & Time Ad opportunities exist every day of the week Use device and daypart insights along with your target consumer profile to inform the design of your marketing campaigns. Percentage of Available Ad Opportunities by Day of Week 1 Weekdays (74% of total week) Weekends (26% of total week) Weekdays offer more desktop ad opportunities than weekends. On weekends, two-thirds of all ad opportunities are mobile. Career Professionals like Jae are frequently online on desktops during weekday work hours % 35% 56% Desktop Mobile Mobile* Desktop 1. MaxPoint, April *Mobile = smartphone + tablet Desktop 65% Mobile She may be interested in your offer but would prefer to respond to it after work, so give her an option to return at a more convenient time. Also, device sound is more likely to be turned off during the workday, so readable ads may be preferable to video.

15 Advertisable Moments Day & Time 1...And across all dayparts Let your objectives drive ad execution by daypart. If you have some evidence that your target consumer is more likely to act on a particular ad if they see it at a particular day and time (e.g., seeing an ad for a quick meal solution on a weekday afternoon), digital has the flexibility to deliver, and it s worth testing. However, if you need to reach a large number of high-potential buyers quickly to drive incremental sales during a specific drive period, prioritize getting your ads in front of your ideal buyers whenever and wherever they re available rather than constraining ad delivery to theoretically ideal dayparts. Percentage of Available Ad Opportunities by Time of Day 1 Desktop usage is highest at midday on weekdays, while mobile usage peaks in the late evening every day. WEEKDAYS 5% WEEKENDS 5% 4% 4% 3% 2% Mobile* Desktop 3% 2% 1% 1% 14 0% LATE NIGHT (12AM 7AM) (7AM 10AM) EARLY MORNING DAYTIME (10AM 5PM) (5PM 8PM) EARLY EVENING PRIME (8PM 12AM) On weekdays, mobile offers a steady stream of ad opportunities at all hours, with a surge from 8 to 10 p.m. But from 8 a.m. to 4 p.m., desktop ad opps outnumber mobile. 1. MaxPoint, April *Mobile = smartphone + tablet 0% LATE NIGHT (12AM 7AM) (7AM 10AM) EARLY MORNING DAYTIME (10AM 5PM) (5PM 8PM) EARLY EVENING PRIME (8PM 12AM) On weekends, mobile ad opps are 1.5x higher than desktop during most times of the day and show an hourly pattern similar to weekdays with a late evening surge.

16 Advertisable Moments Total Context 1 Device usage is just one of many aspects of the context in which consumers experience and respond to digital ads To create more relevant and impactful digital ad campaigns and customer experiences: The context of an advertisable moment includes factors such as device usage, day and time, and location. Develop comprehensive insight into not only your target consumer but also into the context in which they re likely to see your marketing. Incorporate those contextual insights into your creative and media plans to design more relevant and impactful campaigns. Device Usage Mobile or desktop? App or browser? Time Day of the week? Time of day? Season or holiday? Local Conditions Weather? Pollen count? Pollution index? Activity Stationary or moving around? Alone or in a group? In a quiet or noisy setting? 15 Location Where is home? Where are they right now? What stores do they visit most often? Content Being Viewed Is the consumer online for fun, information, or performing a task like meal planning?

17 1 Advertisable Moments Advertisable moments exist in unexpected places Conclusion In the new consumer mobility, there is no single equivalent to primetime TV hours in the living room. Advertisable moments are available everywhere: across days, times, devices, and sites/apps. Recommendations Don t operate in silos by device type. Rather, integrate campaign planning and execution across all devices, thereby allowing marketing goals and consumer targets to drive the execution. Prioritize ideal consumers over ideal moments when your goal is to drive incremental store-level sales during a specific drive period. While every campaign and audience combination probably does have some primetime moments for engagement, trying to cherry-pick those moments can be too constraining for shopper marketing purposes. 16 Leverage comprehensive contextual insights about advertisable moments to design more relevant and impactful campaigns.

18 2 Targeting must adapt to multi-device usage 17

19 2 Targeting must adapt to multi-device usage In the new consumer mobility, everyone is using multiple devices and switching between them on a minute-by-minute basis. With each additional device, online activity becomes that much more fragmented and ad targeting becomes that more much complicated. In this multi-device environment, digital advertising requires new technical mechanics for device mix optimization, crossdevice intelligence integration, and cross-device execution. 18

20 2 Targeting Setting the Stage A dramatic rise in multi-device usage has added a new level of complexity to digital marketing Most American adults now own at least two or three online-capable devices, and the number of devices per person is expected to keep growing. In addition, 42% of consumers will, on an almost daily basis, start an activity on one device and finish on another. 1 History of Internet-Connected Devices 2 Penetration of US Adults INTERNET OF THINGS LAPTOPS 2009: 50% 2015: 82% SMARTPHONES 2011: 42% 2015: 74% (peak of 87% for ages 26 32) TABLETS 2011: 13% 2015: 56% (peak of 69% for ages 26 32) 1. Yahoo, January Deloitte, November SMART WATCHES 2011: 0% 2015: 7% (peak of 15% for ages 26 32)

21 2 Targeting Setting the Stage Widespread multi-device usage has led to the need for cross-device technology Cross-device technology tells us which specific devices are being used by the same individual. To identify the same person across their devices, data points such as login ID, mobile device ID, and network IP address are used. Over the course of a day, the online activity of Ali in the Suburban Families segment might look like this: The one-person / multiple-devices connection gives you: A complete picture of a consumer s online activity More potential touchpoints with a targeted individual as compared to reaching them on just one of their devices The option of message sequencing that is, delivery of a specific sequence of messages to an individual over time, unaffected by their switching from device to device If we can t aggregate Ali s online activity across all of her devices, we might never make the connection that she is a mass merch shopper who is interested in pet fish, dessert recipes, and humorous content. MaxPoint s Digital Zip platform has always aggregated data from all types of devices and delivered ads across all devices, doing most of the integration at the micro-neighborhood level. Cross-device technology now takes the integration a level further, down to the individual. 8 a.m. 12p.m. Smartphone Visits mass merch stores regularly Laptop Looks up info on pet fish 20 2p.m. 6p.m. Tablet Looks up recipes, especially desserts Smartphone Views humorous content

22 2 Targeting Ad Delivery Mechanics Multi-device usage has increased the complexity of basic online ad delivery Apply proven multi-device ad delivery mechanics, because nearly all consumer targets need multi-device coverage. The new consumer mobility requires new ad delivery mechanics that can: Deliver ads equally well across all types of devices and contexts Determine an appropriate mix of desktop and mobile ads for each campaign and shopper target Optimize the ad mix during the campaign based on real-time consumer response Works on Desktop Devices? Works on Mobile Devices?* YES 1 YES 1 for browsers NO for apps Online ad delivery mechanics aren t one size fits all. Cookie Online ad delivery requires some type of unique identifier to determine whether an individual matches your targeting criteria. The rise of multidevice usage demands technology (such as MaxPoint s Digital Zip technology) that can identify your target across all types of devices. NO ID Device ID YES 21 YES 2 YES 2 Device Location 1. Except when a user proactively deletes or blocks cookies. 2. Accurate location data is not yet a reality on every ad request; sophisticated technology (such as MaxPoint s Digital Zip technology) remains necessary to accurately derive location from various data sources. * Mobile = smartphone + tablet

23 2 Targeting Consumer Intelligence Multi-device usage has also fragmented the consumer intelligence needed for targeting Leverage integrated consumer intelligence from all devices for the most precise targeting. The right target definition carries a high value: it can double or triple consumer response, as measured not just in ad clicks but in actual sales lift. A holistic view of the consumer is critical for targeting precision. If you look at a person s smartphone activity only, you ll likely miss some of the data that you need to conclude that this person matches your targeting criteria. To accurately determine if a shopper fits your targeting criteria, it s critical to look at their online content consumption, location history, and other data in aggregate, across all of their Internet-connected devices. 22

24 2 Targeting Cross-Device Cross-device ad delivery increases your chances to convert your shopper target Leverage cross-device technology for messaging continuity and speed to conversion. Success in the new consumer mobility requires an integrated and highly flexible approach to ad delivery. Cross-device ad delivery helps maintain messaging continuity and maximize touchpoints with your target regardless of which device they re favoring at the moment. This is especially valuable when speed to conversion is a top priority such as when you re trying to ramp up sales of a new product or maximize response to a limited-time promotion Advertisable Moments Available per Person per Day for the Suburban Families Segment Mobile * Desktop 23 Shopper targets like Ali in the Suburban Families segment have advertisable moments split almost evenly between mobile and desktop. 51% 125 ad impressions + 1. MaxPoint, April *Mobile = smartphone + tablet 120 ad impressions 49% We aren t suggesting that any consumer should see the same ad 200 times! Rather, by starting with the broadest set of ad opportunities, you increase your chances of reaching your target at a moment when they feel like engaging. We based our figures on 60 billion advertisable moments per day divided by 245 million US adults. When you can hit your target across all of their devices, you increase your opportunities to engage and convert that shopper.

25 2 Targeting Cross-Device An integrated cross-device approach also creates opportunities for new consumer insights and campaign strategies Leverage the power of cross-device intelligence for marketing innovation. The robust insights generated from cross-device advertising data can be applied to other marketing efforts, such as app promotions, CRM, , social, SMS, and e-commerce efforts. Cross-device consumer insights are valuable even when a program is mobile-only (e.g., a promotional offer that requires redemption via a mobile app). 24 New campaign strategies are made possible by cross-device ad delivery. Consider message customization and sequencing. Design a campaign that delivers a varying message or offer depending on the consumer s current device and location context or a variation in message after the consumer has seen an ad a certain number of times. Apply real-time optimization to shift ad dollars toward the best opportunities. Media, audience, and device fragmentation, a rapid pace of change, and the inevitable unknowns make pre-campaign target definition an imperfect science. With a fully integrated, crossdevice approach, you can define your KPIs and let real-time optimization technology do the rest. New consumer insights can be derived from consumer behavior across devices, time, and locations (including mobile device location history, such as the frequency of visits to specific retailers over the past 30 days).

26 2 Targeting Conclusion Targeting must adapt to multi-device usage In the new consumer mobility, everyone is using multiple devices and switching between them on a minute-by-minute basis. With each additional device, online activity becomes that much more fragmented and ad targeting becomes that more much complicated. Digital ad targeting in this new multi-device environment requires new technical capabilities. Recommendations 25 Employ ad delivery mechanics that are proven to work across all devices, with the flexibility to optimize the device mix for each campaign and shopper target. Leverage holistic consumer intelligence aggregated across all devices for the most precise targeting. Apply cross-device technology for messaging continuity and speed to conversion.

27 3 Location is not just about where you are, but who you are 26

28 3 Location is not just about where you are, but who you are Location is always relevant both the shopper s home location and the locations they visit because it tells us so much about their lifestyle, where they shop, and more. In the new consumer mobility, the availability of expanded location data has brought several new challenges and opportunities to the fore: Location accuracy remains a critical issue. Geotargeting can be based on where you ve been, not just where you are right now. Layering location data with other types of data is a very powerful approach to targeting and especially relevant for shopper marketers. 27

29 3 Location Setting the Stage Where you live has always been relevant for ad targeting... The neighborhood where you choose to live says a lot about you: Your spending power and lifestyle Your social, cultural, and environmental influences Where you shop since most shopping happens within a few miles of home And, in the new consumer mobility, a lot of online activities and advertisable moments still happen at home. For example, pre-shopping from home remains a top advertisable moment on all devices. In fact, about 60% of mobile device usage for pre-shopping happens at home, nearly double what it was just two years ago. 1 Your home location Locations you visit Consumers like Sue in the Rural Families segment are 50% more likely to be dog owners than urban dwellers are. 2 They care about their dogs every day of the month, not just when they re in proximity to a pet store. Reaching them at home and getting your products on their shopping list has proven to be an effective targeting strategy xad, American Pet Products Association, 2014.

30 3 Location Setting the Stage...And widespread smartphone usage now gives us greater insight into the locations you visit The stores and other locations you visit also reveal a lot about you: What types of retailers you prefer to frequent (e.g., full-service or lowest price) How far you re willing to travel to shop Whether you re likely to be in the market for premium pet products Your home location Locations you visit Consumers with more disposable income, like Jae in the Career Professionals segment, will exhibit very different store visitation patterns than consumers like Sue in the Rural Families segment will. Insights like how often a particular consumer segment shops for groceries and how many different chains are visited can provide valuable guidance for promotional offer design. 29

31 3 Location Accuracy Location accuracy is critical for effective geographic targeting Employ sophisticated location technology to enable precise geographic ad targeting to both home and mobile locations. When your goal is in-store shopper conversion, you don t want to waste ads on people who live too far from the targeted retailer. Internet ordering with next- or even same-day delivery will likely reduce the distance shoppers are willing to travel to stores, so now is a good time to update your understanding of how far shoppers are actually traveling from home to store. Geographic Targeting Case Study The accuracy of the location data available to advertisers varies widely, depending on the publisher and each individual s smartphone privacy settings. Store Location The Dallas Ft. Worth DMA contains over 2.5 million households more than one-fourth of the entire population of Texas. Delivering ads only to that subset of neighborhoods covering the targeted retailer s store locations can improve efficiency up to 50% over delivering ads to the entire DMA. 30 Neighborhood

32 Location Geotargeting 3 Storefront geofencing can be overly limiting for shopper marketing Think geotargeting, not geofencing, for shopper marketing campaigns. Geofencing that is, targeting shoppers with ads only when they are within a short distance of a store is not the only way (or even the best way) for CPG shopper marketers to use location data, for two reasons. Immediate location targeting severely limits reach. Dog owners care about their dogs every day of the month, not just during the 30 minutes a month when they re in proximity to a pet store. And when a shopper is in proximity to a store, chances are she isn t looking at a banner ad on her phone at that moment. 31 Proximity to a store is not the best indicator of purchase intent. Unless you compete in a category with very high household penetration and trip incidence, there s a very low probability that any given shopper is a potential buyer of your category that day, much less your brand. For most CPG products, it s better to hit people with ads at other times, focusing on getting your item on the list for their next shopping trip.

33 Location Geotargeting 3 Where you ve been can be more valuable for ad targeting than where you are right now Think creatively about ways you might use the new stream of location history data to your advantage. The stream of location data emerging from mobile devices is powerful, previously untapped data that can provide consumer insights and inform marketing decisions beyond decisions about digital advertising. For example, if you want to maintain and grow shopper loyalty at your most profitable retailer, you can now strategically target frequent visitors to that retailer. You can also use location data to develop post-campaign audience response insights. For example, was sales lift higher among frequent Chain A visitors or among frequent Chain B visitors? A consumer who regularly visits Walmart and Whole Foods can be assumed to have different shopping priorities than a consumer who regularly visits Walmart and Aldi. 32

34 Location Data Layering 3 Location integrated with other data layers is very powerful for targeting Leverage historical data on locations visited in combination with other data layers, such as product purchasing and retailer spending data, to select the ideal shopper target. Mobile location technology has created valuable new layers of data for ad targeting, but location alone is not enough. Consumer s Current Location Consumer s Home Digital Zip 33 Consumer s Location History (past 30 days) Shopper Demographics Retailer Spending History Product Purchasing Habits Online Interests & Purchase Intent Indicators Targeting is significantly enhanced when location data is combined with additional layers of data that predict consumer interest in the product being advertised. Hispanic consumers like Maria in the Urban Starters segment might not visit supermarkets more often than average, yet spend far more than average at these stores. Thus, to reach your ideal shopper target, you ll want to consider not just a shopper s proximity to a store or their past visits to that store, but their spending habits as well.

35 3 Location Summary Location is not just about where you are, but who you are Location is always relevant both the shopper s home location and the locations they visit because it tells us about their lifestyle, where they shop, and more. Expanded location data when accurate and applied to best advantage is a powerful new data stream for advertisers. Recommendations Work with ad partners who have sophisticated location technology to enable precise geographic ad targeting to both home and mobile locations. Expand your thinking about location-based targeting beyond geofencing to more sophisticated opportunities that leverage location history. Use location in combination with other layers of both online and offline data for best advantage. 34

36 4 The new consumer journey demands greater flexibility 35

37 4 The new consumer journey demands greater flexibility The new consumer mobility has dramatically changed the consumer journey to purchase. The entire journey from awareness to consideration to purchase can now happen in a digital second or it can require multiple online and offline touchpoints to achieve conversion. These changes require that shopper marketers incorporate mobile insights and expectations into all of their efforts. 36

38 4 Setting the Stage Consumer Journey The new consumer mobility has dramatically changed the consumer journey to purchase There are now many new marketing touchpoints and consumer options for researching and purchasing products, all of which a consumer may experience in virtually any order, at any time, in any place. These changes have given rise to three new imperatives for shopper marketers: customer mobile interactions that meet expectations Organize for speed and flexibility so you 2. Design 3. for a flexible, friction-free, and personalized experience. can quickly respond to new opportunities. mobile insights into every 1. Incorporate stage of the customer journey. Videos and e-commerce are two growing influences, and digital advertising remains important. There are some new items to put on your checklist when evaluating the design of mobile customer experiences. For example, use conditional and dynamic ad campaigns to beat competitors to real-time consumer needs. Touchpoints Along the Consumer Journey Brand Website Rapid Reorder Promotion App Scheduled Replenishment User Reviews Interactive Ads Physical Store 37 Retailer Website Social Media Brand Website Retailer App Digital Coupon

39 4 Consumer Journey Setting the Stage Pre-shop product research behavior has changed significantly Mobile devices have taken the lead over desktop devices for pre-purchase research. * In 2013, 49% of consumers said they preferred a desktop device for preshopping. In 2015, preference had shifted to mobile: 44% of consumers preferred mobile while 43% preferred desktop. 1 Google has reported that more than half of all US Google searches now happen on mobile devices. 2 E-commerce sites are increasingly favored over search engines as the place for product research. A 2015 survey by BloomReach asked US consumers where they start product searches and learned that 44% start on Amazon, while 34% start on a search engine, and 21% use another retailer site. 3 While 90% of shoppers still complete their purchase offline, e-commerce sites are increasingly the source of product ideas, specific item details, price checks, peer reviews, and other information used to build shopping lists xad, Google, May BloomReach, October *Mobile = smartphone + tablet

40 4 Consumer Journey Setting the Stage Digital advertising remains an important part of the new consumer journey Some common ways of influencing consumer purchase decisions are becoming less effective: Automatic replenishment is reducing opportunities to influence consumers at the point of purchase. Whether you call it convenience commerce, programmatic purchasing, or subscription replenishment, consumers are rapidly adopting the habit of setting up automatic shipments of daily-use products like pet food and vitamins. Digital advertising remains an important tool for shopper marketers because it can reach high-potential shoppers at scale around specific stores and drive incremental foot traffic and sales at those stores. While many item-level purchase decisions are made in the store, it s also true that 72% of category-level purchases are on the shopper s list before they head to the store. 2 Digital ads are an effective way to reach consumers pre-shop, when they re making lists and deciding what store to go to. Shifting product research habits are reducing opportunities for searchbased marketing. The latest research indicates that 44% of consumers now start their product searches on Amazon, with just 34% starting on search engines Need Recognition Pre-Shop 1. BloomReach, October Nielsen, Shop Usage Experience

41 Consumer Journey Mobile Throughout 4 Shoppers have become more comfortable making purchase decisions on their mobile devices Give your shoppers everything they need to make a purchase decision in the mobile context. Consumers are now using smartphones for complete product research up to and even including the purchase transaction. Though the vast majority of CPG purchases still happen in-store, consumers nonetheless expect to be able to complete a purchase on their phone. So give them full functionality in your mobile ads and landing pages so they can quickly and easily: Zoom in on product images The ad opens the door, but the landing page closes the deal. Percentage of consumers who pre-shopped on a mobile device before purchasing 1 Percentage of those pre-shoppers who made their final purchase on a mobile device 1 Research product details Comparison shop your portfolio Check consumer ratings and reviews View how-to videos 34% 54% 23% 35% Use their favorite e-shopping tools (e.g., deal apps and payment systems) Share via their favorite social media tools NinthDecimal, May *Mobile = smartphone + tablet These figures are not specific to CPG products. Mobile* Desktop

42 4 Consumer Journey Mobile Throughout Mobile video is increasingly important in the consumer journey, both for general viewing comscore reports an explosion in mobile YouTube usage. Time spent in the YouTube app on smartphones more than doubled from June 2014 to June 2015, rising from a per-visitor average of 4 hours to 9 hours per month. 1 56% of the US adult smartphone audience used YouTube s mobile app in June 2015, up 18% from the prior year. 1 By 2017, emarketer expects mobile video consumption time to be twice that of desktop comscore, June emarketer, May 2016.

43 Consumer Journey Mobile Throughout 4 And for paid advertising Take advantage of the video trend while it s hot. According to the IAB s third annual Video Ad Spend Study, 72% of media buyers said they plan to shift funds from TV to digital video advertising. 1 Advertisers are jumping into video advertising because click-through rates average five to ten times higher for video ads than for static banner ads. A 2015 Innovid study reports CTR benchmarks of 0.8% for passive pre-roll ads (forced viewing before a user-selected video plays) and 1.2% for interactive ads (users can chose to play video when given the option). As with static banner ads, video ads experience higher CTR on mobile devices than on desktops. 2 Videos (typically 15 seconds or less) allow for presentation of a longer message than will fit in a typical banner ad frame. Marketers more than doubled their spending on digital video ads from 2013 to Digital Video Ad Spending 3 Spending on mobile video is growing faster, but desktop is projected to retain a bigger share of video advertising at least through $9.6B $14.8B 46% $3.8B 19% 81% 43% 57% 54% IAB, May Innovid, July emarketer, March *Mobile = smartphone + tablet Mobile* Desktop

44 Consumer Journey Mobile Design 4 The new consumer mobility involves a more flexible consumer journey Design digital experiences with maximum flexibility to accommodate consumers on whatever path to purchase they choose. Rather than designing a single ad with a single option for consumer response, give the consumer flexible options. Instead of a single banner ad: New product ad campaign 43 Consider a carousel or filmstrip ad format with multiple panes Build a series of ads that can be varied based on context or delivered in a specific sequence Ad with link to online retailer site morning afternoon evening late night Ad with link to digital coupon app Instead of a single option for response, let consumers choose what they want to do next: Learn more about the product, including videos and user reviews Access deals through retailer, coupon, or rebate apps Find a place to purchase online or offline Share on social media Ad with link to rebate app Ad with link to brand site Ad with link to retailer app Remember that while they may both be in the target market for your product, the ideal advertisable moment or in-ad offer for Suburban Family mom Ali may not be ideal for Career Professional Jae. The more options you provide, the better your chance of conversion.

45 Consumer Journey Mobile Design 4 The new consumer mobility has more friction due to shorter sessions, smaller devices, and more interruptions Reduce unnecessary friction in digital experiences by designing to mobile first requirements. New Challenges New Requirements 72 sec 150 sec Mobile * Desktop Shorter sessions 1 Ensure rapid loading of both ads and landing pages Provide the ability to complete a task on one screen Slower data entry More touch/click errors Smaller screens and keyboards Leverage phone features like camera, location, contacts, etc., to minimize typing Design to avoid accidental, time-wasting misclicks (e.g., offer auto-zoom and undo options) Less stable connectivity Give location and contact info high priority 44 More find something near me right now situations 42% of consumers will, on an almost daily basis, start an activity on one device and finish on another 2 On-the-go issues 1. Nielsen Norman Group, April Yahoo, January *Mobile = smartphone + tablet Provide options to finish a task later (possibly on a different device), such as pinning a recipe or requesting an or text reminder

46 Consumer Journey Mobile Design 4 Mobile devices are highly personal Design digital experiences that are context-aware in order to make them feel more personalized and relevant to your target. Mobile devices are highly personal: they re in the palm of your hand 100+ times a day, and they tell you the time, weather, directions, and what your friends are doing. Thus, it s only natural that consumers expect ads to be as context-aware and relevant as their mobile apps are. You can use any aspect of context for personalization: location, day/time, weather, and so on. Here are just a few examples: Localize ad headlines This can be as simple as changing an ad s headline from a generic Conquer the Mountains to a localized Conquer the Rockies in Colorado and Conquer the Cascades in Washington. Eliminate a Step in Store Finding Provide a Carousel of Options for Different Tastes Localize featured products Just by knowing someone s location, you can know which products they re more likely to be interested in. Campaigns can be easily programmed to show different product options to consumers by location. Localize Featured Products & Prices Whitening Toothpaste for Young Singles Neighborhood Plaque-Fighting Mouthwash for Families Neighborhood 45

47 4 Consumer Journey Mobile Design Mobile apps have created higher expectations for visual experiences Strive for visuals that differentiate and spur emotional engagement. Increased usage of highly visual apps like YouTube (+16%), Instagram (+35%), and Pinterest (+66%) along with major advances in smartphone screen quality have contributed to rising demand for high-quality visuals. 1 Remember, too, that consumers can easily become hardened to the same old, same old ads. The brain needs contrast to react. Look for creative ways to deliver the three elements of digital ads that have proven effective in driving incremental sales: What to buy Feature a large, readable image of the product package, or, for a very well-known brand, just the logo can be sufficient. Why to buy now Clearly state a benefit that the consumer can experience immediately, preferably one that engages the emotions. If the benefit is cost savings, state the actual dollar savings rather than just get coupon. Tying in a cartoon character or targeting a serious consumer need are two ways to achieve visual differentiation. Where to buy Include a retailer s name, specific location, a reason to visit on a specific date (e.g., in-store demo), a link to find a location, or a spot to enter your zip code right in the ad comscore, June 2015.

48 Consumer Journey Speed 4 In the new consumer mobility, it s survival of the quickest Organize for speed and flexibility so you can quickly respond to new opportunities to be contextually relevant. Learn how to set up campaigns that trigger ads to run in real-time response to local conditions, such as weather forecasts or pollen counts. Explore the use of dynamic ad formats that change automatically with conditions. 47

49 4 Consumer Journey Summary The new consumer journey demands greater flexibility The consumer journey from awareness to consideration to purchase can now happen in a digital second or it can require multiple online and offline touchpoints to achieve conversion. Recommendations Incorporate the latest mobile activities and insights into every stage of the customer journey. Videos and e-commerce are two growing influences. Design customer experiences for new mobile expectations: flexibility, freedom from friction, and personalization. There are some new items to put on your checklist when evaluating the design of mobile customer experiences. 48 Organize for speed and flexibility so you can quickly deliver relevant messages when new opportunities arise. For example, use conditional and dynamic ad campaigns to beat competitors to real-time consumer needs.

50 5 Measurement and insights benefit from new data streams 49

51 5 Measurement and insights benefit from new data streams Physical location history is a powerful new data stream emanating from mobile devices. Cross-device online activity, location history, and storelevel sales data combine to give us a more holistic view of the consumer journey to purchase. But what still matters most is: Did it sell? and What can we improve? 50

52 5 Measurement Setting the Stage What basic rules should shopper marketers keep in mind when measuring digital advertising? Clicks don t equal conversion. Follow the consumer at least one step beyond the ad click. Measure halo effects on sales. Digital ads frequently drive incremental sales, not just for the few items featured in the ad, but also for the rest of that brand and related brands in your portfolio. Sales lift often continues for a few weeks postcampaign. Analysis of halo effects often generates valuable new insights. 51 Measure online effects beyond the first click. When brand site engagement is a campaign goal, pixel as many web pages as you can even every page of your site to reveal new insights about how consumers engage with your site and also to enable campaign optimization against metrics such as registrations, coupon downloads, and online purchases.

53 Measurement Sales 5 In the new consumer mobility, did it sell? remains the most important measurement question Prioritize sales measurement, but also track and learn from important intermediary steps that lead to sales. Sales Lift Case Study The final score for most CPG ad campaigns is ROAS, calculated from sales lift. You don t win the game on ad clicks alone. Yet the intermediary steps between ad viewing and purchase are valuable steps to track because every consumer touchpoint contributes something to the outcome. The expanding array of digital touchpoints has created new opportunities to measure intermediary steps that advance a consumer toward a purchase, such as ad clicks, time spent on a landing page, coupon downloads, receipt-based offer selections and redemptions, and store visits. Tracking these steps can provide useful insight into the consumer journey to purchase. 0.5% of mobile ad impressions resulted in a click-through, an index of 143 versus benchmarks. 100,000 redeemed offers 5% incremental dollar sales due to advertising 52

54 Measurement Location 5 Physical location history is a powerful new data stream for measurement and shopper insights Look for new insights on who is visiting and how often they visit. Mobile devices are highly personal: they re in the palm of your hand 100+ times a day, and they tell you the time, weather, directions, and what your friends are doing. Thus, it s only natural that consumers expect ads to be as context-aware and relevant as their mobile apps are. How far did shoppers travel from home to store? Advanced location technology enables: More precise geolocation of devices and thus more accurate counting of store visits Tracking of store visits over time, such as the number of store visits in the past 30 days Cross-device user tracking enables: 12% 36% 19% 33% 10% 34% 19% 37% <1 mi. 1 5 mi mi. 10+ mi. DISTANCE FROM HOME DIGITAL ZIP VISITORS EXPOSED TO AN AD ALL OBSERVED VISITORS 53 Measurement of the impact of both desktop and mobile ads on retail foot traffic More robust audience response insights based on consumer activity across all of their devices What other stores do they tend to visit on the same day? CRICKET WIRELESS MCDONALD S DOLLAR TREE JACK IN THE BOX OFFICE DEPOT A brand s inclusion in this material does not guarantee a relationship with MaxPoint Interactive, Inc CHICK-FIL-A CHILI S H&R BLOCK ROSS DRESS FOR LESS BEST BUY

55 Measurement Location 5 Location history across multiple retailers is particularly useful Explore new ways to leverage location history for competitive advantage. For example, if you want to maintain and grow shopper loyalty at your most profitable retailer, you can now strategically target frequent visitors to that retailer. You can also use this data to measure the source of sales and traffic lift at the end of a marketing campaign to see who is responding to your marketing effort. For example, was the greatest lift observed in neighborhoods with higher Chain A visitation or with higher Chain B visitation? Foot Traffic Case Study Goal The client s campaign objective was to drive drugstore shoppers to download its mobile app, which provides discounts on branded medications along with reminders to take and refill prescriptions, with the ultimate goal of increasing patients adherence to their drug regimens. The client wanted to measure the campaign s impact on visits to participating drugstores. 54 Results The campaign drove an impressive 9% lift in drugstore visits among consumers exposed to the ad vs. a matched group of non-exposed consumers. Analysis of high vs. low responders enabled significant improvements in targeting efficiency for subsequent flights.

56 Measurement Improvement 5 The second most important question is what can we improve? Always peel the onion to understand who and where your best responders are. Sales Lift & Audience Insights Case Study Quantitative measures like ROAS are most important, but also valuable are qualitative insights that can help you improve not just your digital ad campaign but all of your marketing efforts. The same data used for ad targeting should be available to you for post-campaign insights on high vs. low responders by geography, store type, and consumer segment. These insights can inform targeting decisions not just for digital advertising, but potentially for other marketing efforts as well. Percent Lift in Dollar Sales Low Medium High High lift neighborhoods saw sales lift 3x higher than low lift neighborhoods did. 55 Consumers in high lift neighborhoods are older, have higher income, and are more rural than consumers in low lift neighborhoods.

57 Measurement Improvement 5 The very process of buying and selling advertising generates valuable data for analysis Leverage your media dollars as currency to acquire measurement and insights services. Most digital advertising is now bought and sold programmatically in online marketplaces: over two-thirds of banner ads (both desktop and mobile) and half of video ads. 1 These marketplaces generate an incredible stream of data. MaxPoint, for example, analyzes 60 billion advertisable moments every single day, each providing details on the consumer s context at that moment, such as the day and time, device type, online content being viewed, and physical location. This marketplace data can be integrated with data from many other sources to develop powerful insights, such as those available from MaxPoint s Digital Zip platform. Think of your media dollars as buying not just the advertisable moment, but also access to this data stream emarketer, April 2016.

58 5 Measurement Summary Measurement and insights benefit from new data streams Physical location history is a powerful new data stream for measurement and shopper insights, particularly when combined with online metrics and in-store sales data. Recommendations Focus on measuring conversions mostly in sales, but also in the intermediary steps correlated with sales such as store visits, engagement with apps, coupon downloads, rebate redemptions, etc. Emphasize practical outcomes like incremental sales and ROAS rather than theoretical debates about which click on which device was responsible for a conversion. Leverage the powerful, expanded data streams of mobile location data and crossdevice online activity for new business insights. Instill a test-and-learn discipline across all of your digital marketing. 57