Behind the Methodology of LCI. A Process Overview

Transcription

1 Behind the Methodology of LCI A Process Overview

2 Behind the Methodology of LCI A Process Overview NinthDecimal s Location Conversion Index (LCI ) is a sophisticated offline attribution solution used by advertisers, agencies, and publishers to understand the physical world impact of omni-channel advertising. Our methodology is backed by proprietary technology which is continually tested, refined, and proven as the industry standard for offline attribution. In fact, over 225 brands, agencies, DSPs, and other media properties have chosen to be LCI verified to measure campaigns across the ecosystem using our methodology as their offline attribution benchmark. And our massive data scale means that LCI results are accurate to 95%+ confidence intervals. Top Agencies, Brands, and Media Publishers Use LCI as the Measurement Standard Our Verified Partners Include*: 8 of the top 10 media companies 8 of the top 9 DSPs *according to Forrester and comscore, 2016 LCI is channel agnostic and measures campaigns across the ecosystem not just on NinthDecimal media which means that advertisers can also compare performance across channel partners. Being precise is critical, and so is being actionable. Our sound and thoughtful methodology accounts for seasonality, cross-screen behavior, and time attribution of visitation to provide a metric that reflects the incremental lift in store visits truly driven by advertising strategies. We re proud to offer the strongest and most widely adopted methodology on the market; read on to learn more about our process...

3 1. Audience is exposed to advertising As an advertiser, you run campaigns on many forms of media mobile app, mobile web, desktop, television, direct mail, etc. Even within the same media, you re balancing budget across many different publishers, audiences, and creative executions. NinthDecimal s LCI begins with this ad exposure. We then map each device s exposure to the person who owns the device to gain a complete understanding of user-level exposure. YOUR AD YOUR AD YOUR AD YOUR AD 2.Store visits are monitored before, during, and after the campaign With 6 trillion monthly data points maintained over 13 months, NinthDecimal can monitor how frequently both your exposed audience and unexposed audience visit any given store location. This provides a benchmark for each individual s natural visit behavior, which is crucial for calculating LCI. ad CAMPAIGN 3. Outliers, like store employees, are removed Prior to beginning calculations, NinthDecimal removes individuals like store employees, who show exceptionally high visit counts. This prevents the outliers from skewing calculations and biasing the measurement results. 4.The exposed audience is matched 1:1 to an unexposed control group EXPOSED GROUP CONTROL GROUP For each individual that was exposed to the advertising campaign, we find another individual who looks identical but was not exposed to the campaign. We match our control and exposed groups on a myriad of attributes, including demographics like age and gender; behavioral and psychographic trends; number of devices owned; where people live and past store visit behavior, including neighborhood, frequency to those locations, and average time between visits.

4 5.Change in visit behavior pre- and post-campaign is calculated for both control and exposed groups ad exposure INCREMENTAL VISITS NORMAL VISITS Using our vast repository of historical visit data, NinthDecimal calculates the baseline visit rate for each individual and whether it changed after ad exposure. We weight each visit according to the time between exposure and visit (giving greater weight to visits that occurred closer to ad exposure), mirroring industry standard approaches to ad recall. By comparing this change in visit behavior between the control and exposed groups, we account for seasonality and can accurately point to the incremental visits that directly resulted from your ad campaign. We calculate this LCI lift daily to account for a single person s multiple exposures and visits during the campaign. We then take a weighted average of these daily calculations to generate overall campaign LCI. 6. LCI by tactic, partner, creative, or audience gives insight for optimization When ad campaigns have sufficient scale (see our required minimums to assess feasibility), we can calculate LCI at a granular level so that you can understand the impact each tactic, partner, creative, audience, or any custom cut had on store visits. This ability allows advertisers to compare incremental lift, incremental visits, cost per incremental visit, and more for each media strategy to optimize future campaigns and make more efficient budgeting decisions. Location Visits Graph Table

5 About NinthDecimal NinthDecimal is the marketing platform powered by location data. It harnesses this data to build a precise understanding of consumers physical world behavior. Fortune 500 companies and marquee brands, including Microsoft, Target, Kraft, Comcast, American Express, Starbucks and Toyota, activate this customer intelligence through audience targeting, measurement, insights and data licensing solutions. By filling the massive gap in understanding how consumers spend the majority of their time, NinthDecimal provides marketers a comprehensive new model of the customer journey for impactful engagement. NinthDecimal processes trillions of data points from over 195MM unique users every month to power its product suite. Its Location Graph is the most precise audience intelligence technology in the market, and its Location Conversion Index (LCI ) is the leading offline attribution solution with over 225 integrated media and advertising partners. NinthDecimal s unique household to device matching capability bridges online and offline data, powering omnichannel offerings that include partnerships with leading companies like Adobe, Acxiom, comscore, Experian, Neilsen, Oracle, and TiVo. NinthDecimal is headquartered in San Francisco with offices in New York City, Chicago and Silicon Valley. Follow us on Twitter (@NinthDecimal) and like us on Facebook. Learn more at NinthDecimal.com.

6 LCI Benefits What makes NinthDecimal different? How our clients and partners benefit Locations are not proxy, geofenced, or tile-based. Our understanding of the physical world is based on precise parcels, which means you can rest easy knowing that when we measure a store visit, it actually happened. No incentivized responses from panels, and no selection biases. Lift measurements aren t skewed by incentives or limited by small, self-selecting samples we re able to see almost the full mobile enabled US population. Lift is calculated against your audience target, matched at a 1:1 level, not the general population. If you re targeting moms with young kids, you don t want to compare their visit behavior to college-aged males. NinthDecimal s matching process ensures that the lift you see can be truly attributed to your ad campaign. Massive scale means lift calculation doesn t rely on modeling or extrapolation. Our data covers over 87% of all smartphone users in the US, so you can rest assured that our lift results are representative of your entire audience. LCI is calculated at the user level, not the screen level. Measuring at the screen level can falsely inflate metrics. The results we provide reflect the true reality of today s cross-device landscape.

7 Have questions? We re here for you. Our team of data experts are eager to chat. Reach out to us at to schedule a demo, assess feasibility, or just to say hey!