Improving Digital Advertising – the NinthDecimal Approach
Jan 27, 2015
Brand advertisers want to reach the right audience with the right message at the right time, regardless of whether they are viewing content on their TVs, PC, tablets, or mobile phones. However, there are several barriers that exist today in the digital, multi-screen advertising marketplace. These include 1) barriers between different media types in mobile, 2) barriers between devices themselves, and 3) barriers between online and offline channels. Showing the same ad to users across different mediums is not really a very efficient way to spend advertising dollars. Another challenge is related to performance measurement, where advertisers and agencies struggle with determining how successful a campaign has been in driving sales in their online and retail stores. Clearly, ability to provide a unified ad serving, and ad measurement approach is the need of the hour in the U.S. digital advertising market.
NinthDecimal is a leading mobile audience intelligence company that offers precise and relevant audiences across all media channels on a single platform. The company works with more than 10,000 app developers and has successfully gathered 1 trillion validated data points (such as “location tags”) from over 1 billion profiled devices. A location tag integrates location data and contextual data to provide enhanced visibility into different location attributes– including identifying a specific landmark or business entity at a particular location. By understanding the patterns of human movement between these locations, NinthDecimal has built a “Location Graph” that offers a unique look at how people’s behavior is interconnected with their locations. In other words, by closely analyzing the patterns of human movement within its network (and by understanding which type of locations co-relate significantly to audience types), NinthDecimal has successfully built anonymous profiles of mobile users which can then be used for ad targeting and measurement. NinthDecimal also incorporates third party data and machine learning algorithms to further refine and improve these profiles.
By using location as a “cookie” that unlocks audience intelligence in mobile, NinthDecimal can address the three main barriers in digital advertising. By establishing a unique, anonymized identity at the mobile device level, NinthDecimal can help advertisers understand the effectiveness of cross-media mobile ad campaigns. The company can also associate consumers’ online identities with their mobile identities, which helps advertisers measure the impact (or ability) of online campaigns to drive in-store traffic (since NinthDecimal can determine consumer movement patterns from their mobile phones). In fact, NinthDecimal’s Location Conversion Index (LCI) has emerged as a fairly accurate ROI metric for measuring the incremental lift in store visits directly attributed to different types of mobile and online ad campaigns. NinthDecimal can also identify mobile devices in a household, which can be used to measure the effectiveness of television campaigns. The same approach can be applied to print and direct mailer ads, where by measuring consumers’ real-world behaviors by leveraging advanced, precise location determination NinthDecimal can help advertisers understand the true impact of their advertising campaigns.
The Road Ahead
2013 and 2014 have been the years of audience targeting in the US digital advertising market, where “beyond-the-click” measurements have been focused on seeing the secondary action of users on a landing page. Frost & Sullivan expects 2015 to be the year of measurements for digital advertising, with a greater focus on measuring ad effectiveness through more detailed and direct reporting. Aspects such as determining if consumers are actually going into the store, if they are at a cash register, etc. are increasingly becoming the key measurement factors. Solutions such as NinthDecimal’s LCI that can accurately track consumers’ physical world behavior and can help drive the shift from a media-centric approach to a people-centric approach will become increasingly critical in the U.S. digital advertising market.
Fourteen years of product marketing, research, and consulting expertise, which includes supporting clients’ needs through more than 140 syndicated market research deliverables and consulting assignments. Particular expertise in Assessing next-generation telecommunications trends, technologies and market dynamics; Helping clients develop and execute their go-to-market strategies; Providing continuous inputs to clients into new market developments and helping them understand the strategic implications.