The Growing Location Data Ecosystem: Bridging the Digital and Physical World Divide
by Andrew Stevens, SVP, Research & Insights, Clear Channel Outdoor Americas
Look around. It’s likely you’ll see evidence of digital distraction and addiction to smart phones. What you might not notice is what remains omnipresent—the physical world around us. In fact, most of our activities—and a whopping 85 percent of sales, according to the National Retail Federation, still occur in the physical world, rather than the digital world. Bridging that gap between the two worlds is a growing ecosystem of location-based mobile data that allow marketers to know more than ever about people in the real world. Until now, location data was primarily relevant to mobile advertising. But marketers are realizing that serving ads while people are on their devices isn’t always the best or only way to engage people on the move. In fact, marketers have begun to realize that what’s truly exciting about the mobile data available today is its potential to revolutionize other forms of advertising.
Think about how the data that powers your mobile campaigns so effectively can be used in other mediums, including:
• TV – linking a phone anonymously to a cable set-top-box to understand what users watch and which stores they visited
• Online – analyzing web behavior to verify if a consumer visited a particular store or site after seeing a website or online ad
But in addition to these rather obvious candidates for a mobile data fueled revolution, there’s a more surprising contender where the impact of mobile data could be no less than transformative – out of home (OOH) advertising.
OOH advertising has the opportunity to capitalize on location-based data like no other industry. OOH is a location-triggered medium making it a natural fit to understand consumer interest in the real world with high-quality, creative ads that are meaningful to specific demographics. Prior to this data ecosystem, the OOH industry had OOH ratings that measured audiences and demographics but didn’t provide a lot of context for who was seeing ads. But thanks to the location data ecosystem, OOH is quickly gaining interest from marketers who are finding powerful new ways to reach their audience through a medium that has a visually stimulating and creative canvas. The same precise targeting that made mobile advertising successful now enables OOH to compete with its own highly-targeted and measurable ad campaigns.
Yes, measurable. Marketers have struggled with quantifying ROI in the OOH industry, but struggle no more. OOH now has the power to integrate location-based mobile data that links target audience, behavior patterns, location data, and results so marketers know what’s working and where it’s working. Impressions are tied to audience demographics and to audience behavior. This allows marketers to know, for example, if the mom on her way to drop the kids at soccer practice saw the sign for the sporting goods store and, remembering that she needed to replace her son’s cleats, stopped by the store or went online to make a purchase. This is advertising infused with digital insights, providing better data on who’s seeing your ad and ultimately revealing the full impact of the campaign.
For years, marketers have been asking for high quality analytics, and now for the first time, thanks to the evolution of this location data ecosystem, OOH is finally able to deliver. Just this week, Clear Channel Outdoor Americas introduced RADAR, the industry’s first digital audience measurement solution for campaign planning and measurement. RADAR gives marketers the ability to use the same kinds of sophisticated audience segmentation, targeting and insights they already use in their digital campaigns and apply them to OOH advertising. RADAR can target an anonymous aggregated group of consumers and map their travel patterns so marketers can reach the highest concentrations of their desired audience segments.
RADAR makes campaigns more efficient and effective by:
• Identifying and targeting audience segments based on real-world and digital behaviors
• Understanding seasonal, daily and even hourly trends in travel patterns
• Pinpointing areas of efficiency by identifying OOH locations that deliver a higher concentration of that specific audience segment
Targeting these consumer groups en route to their destination – whether it’s a commute, going for a job or heading to a grocery store – has proven to influence their buying behavior. What better way to reach consumers than a high-impact creative medium like OOH that is always-on, un-skippable, and impossible to miss?
RADAR is fundamental to the OOH industry because it marries location data with high-quality creative to target specific consumer segments at specific locations throughout their day. Innovations like RADAR, fueled by location data, will transform how marketers think, especially in OOH. It’s an exciting time for this industry and we foresee RADAR accelerating the proliferation of the location-based data ecosystem for a more effective and more targeted kind of advertising. For more information.
Clear Channel Outdoor Americas
By Andy Stevens, SVP, Research & Insights
Time Spent or Word of Mouth? Rethinking Metrics that Determine Ad Impact
Today’s advertisers are focused on how consumers spend time as a means to determine how to reach the right audiences.
For instance, media buyers are acutely aware of two trends in the advertising business. First, people are spending less time at home in front of traditional TVs. As a Time magazine story subtly titled “Fewer People Than Ever Are Watching TV” reported, 2014 saw a “precipitous decline in TV viewing” compared to any previous year, according to a Nielsen report. The article also noted that numerous households are “choosing to dump TV altogether,” opting instead for broadband and streamed video content.
That brings us to the second advertising trend in terms of time spent: Internet is King. With individuals spending more time online—especially on mobile devices—Internet advertising would seem like the next surefire bet an advertiser should take by way of reaching audiences. But while digital ads have shown tremendous growth in recent years, an increasing number of studies call into question the effectiveness of these ads – many appear on parts of web pages people rarely see, and some web traffic has been deemed bogus. As a July 1, 2015 Fortune article phrased it: “Half of all online ads are never seen by a human being, huge amounts of traffic and clicks come from bot networks, and fraud is rampant.” Still, the Internet remains a channel where consumers are spending time, and are therefore exposed to ads.
But is “time spent” the right way to measure the true impact of an ad campaign? At Clear Channel Outdoor, we looked at a study that shows the elusive metric of time spent may not be the best indicator of measuring ad impact.
That’s because time spent does not provide an accurate read on whether or not people are actually paying attention to the ads they’re being served. Take a second to think of the last ad on your mobile device you remember. Or better yet, the ad you mentioned to a friend. Having a hard time conjuring the brand?
Exactly. And that’s a problem, because a recent Keller Fay study that involves looking at 36,000 online consumers aged 13-69 annually found that word of mouth conversations—83% of which take place offline—drive 13% of consumer sales and amplify the effect of paid media by 15%. A Nielsen report echoed this finding, indicating that recommendations from friends and family are the number one source of trusted information that drives sales, followed by online consumer reviews and brand websites. Because the bulk of word of mouth conversations take place face-to-face (72%), media buyers can easily lose sight of how brands are talked about and remembered if they focus solely on digital.
Instead of focusing on time spent, media buyers should look more closely at which media generate the most talk. The Keller Fay study found that some of the more traditional forms of advertising—print, radio, and out of home—drove greater word of mouth conversations for ad dollars spent compared to newer media such as digital. And, out of home advertising generates a disproportionately high amount of word of mouth conversations: overall, there are 25.2 billion annual word of mouth impressions citing billboard ads. What’s more, advertising drives 28.5% of earned media, and 11.5% of earned media driven by advertising is from out of home, as shown below.
The fact that out of home generates so many word of mouth conversations despite lesser exposure rates than TV and Internet signals the power of this media. In the six industries Keller Fay analyzed, out of home was by far the most efficient channel for generating conversations that mentioned a specific advertisement, and inspired sales.
Rather than focusing solely on time spent and digital media, media buyers interested in getting a bang for their ad buck must take word of mouth into consideration for measuring impact. And out of home advertising is an excellent platform for generating conversations about brands that, in turn, generate sales.
By examining ways to measure ad impact instead of sticking solely to exposure, marketers can maximize ad dollars by harnessing the power of media platforms such as out of home. And as research shows, for big impact, out of home is the real King.
Contact us to learn how we can help you drive more earned media conversations.