2018 Online-To-Offline Marketing Predictions

As our coverage of how location technology has evolved over the past year has shown, the use of place-based information has spurred myriad ways for brands and consumers to connect online and offline.

It may be hard to imagine the shape of things to come in 2018, but we surveyed several executives in the space to peer into their respective crystal balls on what to expect over the next 12 months:

Collin Holmes, founder and CEO of Chatmeter

Mobile localization and the arms race for A.I:

Consumers are tired of pre-fab marketing messages, and are turning to each other as sources of what to do and buy. In addition, with the introduction of ad blockers which more than half of the U.S has installed on their devices, it’s getting harder and harder for brands to effectively reach their target audiences.

This will continue the rise of mobile and location-based marketing. Consumers have become more comfortable with enabling geo-location services on their phone, due to the value they are getting from many apps being able to access their location. This has tremendous value from a marketer’s perspective, but will rely on new tech, like A.I., to provide detailed and actionable insights on massive amounts of consumer behavior data.

Multi-functions of social:

Social is evolving a lot as well over the last couple years. Seems like people are still maintaining significant spend, many are even increasing, but they don’t feel it may be contributing much to company performance. In the local space, we are seeing big growth of social on driving customers, and big shifts in the review space from Yelp to Google and Facebook in terms of usage and review generation.

Google Maps is getting five times the number of reviews compared to Yelp, and two times that of Facebook. Facebook climbed to number one in total reviews, and most reviews per location. Yelp has seen a 12 percent drop of reviews being created monthly in the last 12 months.

The growth of voice search:

AI and voice search will require more careful strategies for marketers in 2018. These advancements will turn content marketing upside down. People speak and ask questions in natural language, not keyword-based searches, which means your content will either have to include FAQs or be peppered with questions and answers.

Gil Larsen, VP of Americas at Blis:

Cost-Per-Click vs. Cost-Per-Visit

2017 saw the emergence of a powerful new marketing metric: Cost-per-Visit (CPV). With this model, brands pay for an ad only when a consumer that’s been exposed to it visits a specific location. Using the CPV model not only helps brands increase foot traffic and boost sales, but also helps foster a more trusting relationship between brands, agencies and vendors. In 2018, CPV will continue to gain momentum as the metric of choice. Tech partners will need to abandon click-based measurement schemes and work towards building transparent relationships with advertisers to compete.

In 2018, brands will place greater emphasis on location intelligence. Previously, brands focused mostly on proximity advertising but now we’re seeing advertisers turn to more sophisticated uses of location data to inform their campaign. By analyzing historical location data and detailed behavioral patterns, brands gain comprehensive insights into consumer preferences and habits which can be used for hyper-targeted campaigns.

What Blockchain Means For Online-Offline Marketing

There are many technologies that will make impact next year but the most interesting one is the rise of blockchain. By enabling marketers to conduct transactions in a secure and transparent marketplace, blockchain has the potential to solve for many industry issues.

With blockchain, the end-to-end processes of booking, buying, and placing digital ad space will be recorded and stored. And because all these transactions would be available to the public and verified by common consensus, blockchain will help bring about greater transparency and end ad fraud. Integrating blockchain technology into our existing advertising ecosystems will take time.

Larger players will take longer to adapt, and organizations from across the industry will need to come together and agree on a common set of standards. We’ll see more and more startups adopting the technology, and the IAB and other industry bodies will begin setting some key standards. Within five years, the ad industry will transition into using blockchain as a transaction leger. And within a decade, we’ll likely see it become a new industry standard. It’s time for brands and their tech partners to prepare.

On Location And Viewability

To promote transparency, more technology vendors will (and should) develop visualization tools. Throughout 2017, concerns over brand safety, viewability, transparency and ad fraud have led to calls for greater transparency across the industry. These concerns have led some of the loudest voices clamoring for change to make significant budget cuts and many others to tweak their global contracts. In order to heed the calls for greater transparency, companies need to develop tools that foster trust between vendors, agencies and brands.

Gilad Amitai, Ubimo Co-Founder & COO:

Using location data in real time for foot traffic attribution has been widely adopted as a core KPI for measuring retail campaign effectiveness.

By implementing cross device matching techniques, this metric can now be used also to measure other channels besides mobile. Arguably the best indicator of this new standard is Snap’s reportedly $125M purchase of Placed. This acquisition exemplifies the recognition of the growing need to demonstrate ROI for advertisers by connecting the digital world to store purchases and visits.

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Blis And GroupM’s Mediacom On Uncovering ‘Smart Trends’ In Attribution

Location analytics platform Blis is rolling out the beta launch of Smart Trends, a new data and insights tool that allows marketers to analyze consumer behavior, from profiling to attribution, by capturing and activating mobile movement data.

Smart Trends gathers in-store consumer behavioral data and then matches it with in-store comparisons of multiple location types and brands, so that marketers can break down by demographic, contextual, time/day, and device type analysis, as well as compare behavior of user groups side by side.

Media buying shop Mediacom, which is part of WPP’s GroupM, is one of the first ad agency partners to take up Smart Trends with Blis. We checked in with Amy Fox, head of Product at Blis, and Ben Phillips, global head of Mobile at Mediacom, to get an overview of their partnership and what it means for brands.

GeoMarketing: What’s the nature of Blis’ consumer behavioral analytics within Smart Trends?

Amy Fox: Using mobile location data, Blis’ new Smart Trends tool unlocks consumer behavior insights on purchase intent, shopping patterns, and mobile consumption while shopping. Smart Trends provides in-store and inter-store brand analysis by breaking down audience demographic, contextual content, and foot traffic. This allows for side by side behavioral comparison of user groups to enable more effective campaign planning, delivery and attribution in order to deliver competitive advantage.

How does Smart Trends compare to more established behavioral analytics tools like PC-based cookies?

Amy Fox: The data feeding Smart Trends starts out as a string of otherwise arbitrary numbers, which once overlaid with the Blis Point of Interest Database becomes insight into the daily behaviors of devices in store.  Smart Trends layers these snapshots of information over time to provide brands a full overview of spatio-temporal behavior– looking at how people move between the residential, recreational and retail environments.

Ben Phillips: It adds another layer of data that enables us to cross reference existing tools that are available to us and our clients.  Mobile has always been able to provide vast amounts of data based around a consumer in the moment, what were now developing is how to not only understand where our audiences are now but where they have been and to enable predictive modelling for the future. Smart Trends helps us to better understand consumer journeys, attribution and engagement with digital and offline media.

If location is at the center of this tool, how do you regard the perennial question of whether “location data is the new cookie?”

Amy Fox: Location is the new cookie and more when it comes to targeting and engaging with audiences. Proximity is important but you’ve also got to look at location in a historical context. You can build up comprehensive consumer profiles looking at where their device IDs turn up– whether it’s an retail store, a hotel or a movie theater. This is vital to predicting future behavioral. It’s not about where people are, but where they’ve been and using those insights to know where they are going.

Ben Phillips: Location does afford us elements of personalization above and beyond the traditional desktop measurement solutions.  Mobile has developed ways and means such as device graphs, probabilistic and deterministic ID matching and behavioral modelling to determine its audience.  This goes a long way to conforming that the best solution in market are those designed for Mobile first, this approach negates a lot of the preconceived problems encountered when working with desktop platforms and methodologies and expecting them to work in a mobile world.

Location data quality from bidstream/programmatic, GPS, cell phone tower, wifi, and (to a certain extent) beacons/bluetooth IoT sources, offer varying value in terms of accuracy. What are the sources of Blis’ analytics tool and how does it deal with the questions of signal sources and accuracy?

Amy Fox: Smart Trends data is captured via movement data sources which includes GPS, wifi and beacons. Like all Blis-verified location data, it passes through our quality control technology to filter out inaccurate and fraudulent points so that we’re only working with sources we can trust.

Ben Phillips: With 50-70 percent of GPS data being inaccurate, fraud needs to be removed which unfortunately leaves the data sets at a fraction of the size with the need to be scaled up again in order to identify actionable insights. What Blis does is they use verified GPS data scaled out to public wifi, something we haven’t seen done with any other location partner.

Are there any particular kinds of clients that the new behavioral analytics tool benefits? (Retail and QSR versus automotive and banking/financial services? Or does it benefit all major categories?)

Amy Fox: The insights gained from Smart Trends are applicable to any category.  Brand marketers across all verticals have access to a wealth of information on their customers, but often the data is limited to engagement with their own properties. To get a more holistic perspective of their audience – looking at aspects such as behavior with your brand in the context of competitors and in different environments – is valuable in identifying lifestyle indicators to inform brand positioning or cross-vertical partnerships that will help convert target audiences.

Ben Phillips: Many clients, not just retailers with storefronts, are using location data to measure the amount of time spent with their brand– everything from footfall attribution to cross platform engagement. Blis took us through a pilot study looking at foot traffic across the national grocery market. Obviously this is an extremely competitive sector, with promotions and store openings constantly shifting as they fight to increase shopper frequency , which ultimately impacts revenue market share at a brand level.

This passively collected data can provide insight on the actual store-to-store behavioral of shoppers with a granularity that survey data simply can’t match. As we move further away from traditional buying proxies, I predict that location data will become a broad consideration in the coming months, accounting for a large percentage of campaigns in 2018.

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What Location Strategies Are Major Brands Using To Make Retail Relevant Again?

The challenges of omnichannel retail are well known by major brands and while the situation is largely a “glass half full,” there are signs that marketers’ focus is sharpening when it comes to using location data to shape the way they understand and reach their customers.

That’s the gist of a report by location data provider Blis, which rounded up thoughts by marketing executives at Verizon, Microsoft, Coca-Cola, Best Buy, DSW and Chili’s. It explores the current thinking by retail marketers on how to leverage location data to bolster their marketing strategies.

The report, Transforming Customer Engagement with Location-Based Technologies, finds that brands feeling confident in their ability to employ geo-data to drive foot traffic.

Executives at of DSW and Coca-Cola in particular emphasized location data’s ability to allow for greater personalization and context when communicating with their customers, while Microsoft and Verizon touted location insights as providing the connective tissue among a range of media channels as well as emerging technologies such as artificial intelligence/machine learning, voice-activation and Connected Intelligence, and smart homes/cars.

The bottom line: location is essential to communication between brands and consumers in terms of promoting discovery and engagement.

John Carroll, VP General Manager, E-Commerce, Coca-Cola North America: “It’s important that the linkage between what we’re trying to communicate with our brand to what the consumer is doing contextually is clear. It’s also important that we have the opportunity to really drive an experience online, whether through video, creative banner ads, or creative copy. We want to have a brand-building experience online and to drive purchase closer to the shopper.”

Wade Allen, VP Digital Guest Experience & Analytics, Chili’s (Brinker International): “Considering the way consumers use their mobile phones and the need for immediacy in our society, you can’t help but question whether or not we should shift more money out of television advertising and into the digital world. I don’t know what the right percentage is, but my belief is we can’t follow the 80/20 or 90/10 model anymore. Instead, we need to get closer to a 60/40 or 65/35 model with the smaller amount being digital.”

Shari Rossow, VP Retail Operations, Best Buy: “We’re trying to make it easier for customers to start and stop anywhere. It’s now a basic expectation for how we all shop.”

Beth Rick, Sr. Director, Transformation, DSW Inc.: “If you had every single piece of customer data, you could organically become a part of their lives wherever they are. You would be in the fabric of everything, because you would know where they’re located, what information they’re looking at, how they’re using it, what they’re interested in, what their behaviors are; and at that point in time, we would just try to make shoes part of their life… They would just think about shoes and DSW is the place they would go.”

ShiSh Shridhar, Director, Business Development, Data, Analytics & IoT, Microsoft: Retail Sector: “That physical experience is one aspect of it: digital and physical should complement each other. The other aspect is that there will be a lot more channels embedded into how we buy. There are a lot of capabilities available today through things such as cognitive services and artificial intelligence that are going to be used. For instance, the phone camera becomes a channel. We will be capable of pointing a phone camera at a product such as a pair of shoes someone is wearing, and the phone can identify what those shoes are, show prices at different retailers, and then we can buy with a single click.”

Jamie Crespi, Blis VP Marketing

We also checked in with Jamie Crespi, Blis VP Marketing, for her view of the questions posed by the company’s report.

GeoMarketing: What are retailers doing to engage with consumers more effectively in the digital space?

Jamie Crespi: As the findings of the report shows, personalization is top of the retailers’ agenda to get through to consumers across multiple digital touchpoints. It’s important that they use the abundance of data available to them to make their targeting as relevant and interesting as possible, while ensuring they’re serving the right ads on the right devices at the right moment.

This is where location data comes in, as it helps retailers to better understand their customers (and potential customers) and brings the physical and digital worlds ever-closer together. Location data is one of the richest forms of data available for retailers looking to engage with consumers more effectively. It provides brands with contextual insights while allowing them to understand the impact of ads on their consumers behaviors. Brands using location data are able to efficiently target potential customers and drive them in-store.

What is the business value of leveraging location data, and what are the potential risks?

Accurate location data means great message relevancy for brands which leads to a higher likelihood for consumer engagement. At the end of the day, reaching the right consumers with the relevant creative to drive an action is really what it’s all about. Additionally, as our contributors like ShiSh Shridhar of Microsoft and Beth Rick of DSW point out, driving in-store foot traffic is a major bonus to leveraging location data. It’s important to think about location data as an insights and planning tool, not just a means by which to deliver advertisements.

To many, leveraging location data (and leveraging it in a more robust way outside of just geofencing) is still a relatively new concept, but it’s quickly becoming absolutely integral for businesses with brick and mortar locations. Their businesses are reliant on people visiting their stores – for this reason, there’s no reason not to test it.

Source: Blis

How will location-based technologies become part of a greater digital strategy?

David Garcia, Director of Experience Innovation at Verizon, makes a really interesting point when he says how exciting the idea of converging location services with other emerging techs such as AI and IoT are.

At Blis, we’ve already started to use machine learning to predict where consumers will go to offer richer insights to brands and allow for better planning. Being able to accurately identify people who we know are either highly likely or definitely going to visit a store is invaluable as it eliminates waste in spend and increases campaign performance; and this is something we can do with the help of AI.

As David puts it, when these things start to click, you’ll see things you couldn’t have imagined. We believe it’s crucial to keep innovating to better understand consumers.

What trends will have the most impact on location-based advertising in 2018 and why?

One of the biggest developments of 2017 has been a shift towards Cost-per-Visit (CPV) models of measurement. We were early adopters back in April, and have begun to charge clients based only on the people that actually visit target locations. The response has been great as it reduces the risk for advertisers who aren’t sure if they’re getting good returns on their investments and puts the onus back on the vendors. We feel this movement will only grow and develop into 2018, as more platforms like ours move away from click-based metrics and towards models which foster more trusting relationships between vendors, agencies and their brands.

What impact will voice activation/intelligent assistants like Alexa, Siri, Okay Google have on the way geo-data is used for marketing and advertising?

This again ties in with David’s point, and it’s certainly going to be exciting to see how these types of technologies will combine. Ever since they’ve come onto the scene, brands have been wondering how best to harness their potential. One of the key benefits of these services, like Siri & Okay Google, being on your handheld devices is that you can use them when you’re out and about. I’d bet that plenty of voice searches are relevant to their location, as you may need to be reactive when looking for a business or service and this is when your intelligent assistant knowing where you are will come in handy. It also gives local businesses new opportunities to pick up customers.

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