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State of the Market
Location Powered Mobile Advertising Report
2012 Annual Review
Verve is the expert in location
powered mobile advertising
                                                     goals of this report

                                                     ›› Identify and define the principal
                                                        strategies and approaches to
                                                        location-based mobile advertising
                                                        being leveraged by advertisers

                                                     ›› Provide some quantitative distribution
                                                        of the relative utilization of those
                                                        different approaches

                                                     ›› Show distribution across key industry
                                                        categories of location-based mobile
                                                        advertising

                                                     ›› Analyze performance data across
                                                        the location spectrum

                                                     ›› Provide examples of successful
                                                        location powered campaigns




Unique targeting technology, unique audiences,
and high quality location data make Verve the
key partner for national and local advertisers
looking to leverage location data to make their
mobile advertising more effective.
                                                     METHODOLOGY
                                                     Verve has analyzed 2,500+ mobile campaigns
As the largest location-based mobile advertising
                                                     delivered during 2012, most of which were
business in the U.S., Verve serves many of the       location powered:

leading brands and publishers and offers the most     ››   By strategy of location targeting
                                                      ››   By industry/vertical or category
insightful data sets for expert-level reporting on    ››   Click-through rates (CTR)
                                                      ››   Performance by strategy
the state of location-based mobile advertising.
                                                      ››   Creative execution type

                                                                                                  2
Types of location powered
mobile advertising
Location targeting enables advertisers to be smarter in how they place media

so that impressions are not wasted in areas where the advertiser has little or

no presence. Advertisers are targeting particular market geographies from

metro areas, sets of zip codes, even zip+4, to specific miles radius around

particular locations. They are also targeting audience segments where the

segments are built on location-based data.


 ›› 	 Geo-aware
     Geo-aware campaigns use real-time location data to deliver specific,          Success STORY // FINANCIAL
     often dynamic, messages to the user based on their distance from the          Making it epic
     nearest retail location or proximity to a particular location.
                                                                                   Promotion:
 ›› 	 Geo-fencing                                                                  Credit card sports affiliate program
     Advertisers targeting users based on a set distance (often miles) from a
     location of interest such as a store, or physical site where known audi-      Goal:
     ences frequently visit. Consumers outside of the geo-fence would not          Increase program enrollment and
     be served the ad because they fall outside of the location parameters.        brand awareness
     This technique is particularly useful for advertisers looking to drive foot
                                                                                   Strategy:
     traffic to physical store locations.
                                                                                   Content and location targeting to
                                                                                   reach football fans at premier
 ›› 	 Location-based Audience Data Targeting
                                                                                   sports venues
     Advertisers targeting mobile users by leveraging anonymous third
     party offline data such as demographic types, transactional or                Execution:
     psychographic attributes which are then coupled with high quality              ›› Rich Media
     location data to determine audience “clusters” by geographic area.             ›› Device Type (Smartphone + iPad)

                                                                                   Result:
 ›› 	 Place-based Targeting                                                        Football fans responded to this mobile
      Advertisers targeting users based on audience segments that are built        campaign with great excitement
      based on a user’s location and time. Verve has worked with a third           generating a CTR 5x higher than the
      party data provider, and more recently launched its own platform, that       industry average.
      slices the entire U.S. into micro-grids and associates multiple data
      points to each grid. So, if an advertiser wants to target “soccer moms”      CTR:
      Verve would recommend targeting location grids that score high for
      that type of audience such as suburban supermarkets or playgrounds
                                                                                   2.0%
      during school hours, on weekdays.




                                                                                                                            3
Mobile campaigns leveraging location targeting
outperformed non-location targeted campaigns
by a factor of 2x
As 2012 progressed, advertisers began to get more                                Location Targeting by Strategy

sophisticated in their targeting approaches, leveraging                                                    City
                                                                                                                Zip*
                                                                                        Geo-aware          4%
more geo-fenced, geo-aware and location-based audience                                                          6%
                                                                                           14%
targeting. In 2011, only 17 percent of Verve campaigns were

geo-fenced or geo-aware but in 2012, 36 percent of Verve
                                                                              Geo-fence                                   DMA
campaigns leveraged geo-aware or geo-fencing strategies.                                                                  30%
                                                                                22%




                                      2x
                                                                                                 Audience**
                                                                                                    24%


                                     Performance
                                       Increase                             * Zip includes Zip+4
                                                                            ** Audience includes third party data and place-based targeting




Who is using location powered advertising?
Of the 2,500+ mobile campaigns delivered on the Verve Platform and analyzed for this report, most utilized location

targeting, which is not surprising as Verve’s focus is location targeting. The chart below shows the percent of campaigns run

on the Verve Platform that were location targeted by advertiser industry/vertical. Advertisers with physical, brick-and-mortar

locations and those with inherently local products like real estate led in the percent of campaigns that used location targeting.

                                                   Location Targeted Campaigns by Vertical
                    Grocery

                    Political
                  Healthcare

                     Lottery
                 Real Estate

                   Education

                 Automotive

                 Restaurant
                    Telecom
                      Retail

                      Travel

                   Financial

            Consumer Goods

        Consumer Electronics


                                0%    10%   20%       30%     40%     50%      60%           70%          80%           90%           100%

                                                                                                                                              4
Restaurants and retail led all advertisers in the
use of geo-aware and geo-fenced campaigns
Advertisers are increasingly using dynamic, location powered creative to facilitate traffic to the nearest retail or restaurant

location. Consumer goods companies were also successful in driving mobile users to the nearest grocery or retail location

where their products are sold. Audience targeting is also a popular tactic, allowing an advertiser to focus only on

geographic clusters that index highly for their desired demographic .

                                                                                                    DMA / Zip / Zip + 4   Geo-aware or Geo-fenced       Audience


             RESTAURANT                               RETAIL                      TRAVEL                                        CONSUMER GOODS

                 7%
                                                 13%                             13%
                                                                                                                                 21%

                         50%                                   55%         30%
           43%                             32%                                                                                                    49%
                                                                                              57%
                                                                                                                                30%




                 TELCO                            FINANCIAL                           AUTO                                            POLITICAL

                 3%

                                                22%                             20%

           28%                                                                                                                   27%
                                          11%                             10%

                         69%                                   67%                           70%                                                  73%




   Success STORY // RETAIL

   Location is fashion-forward
   Promotion:                              Execution:
   David Beckham Bodywear                   ›› Dynamic
                                            ›› Expandable
   Goal:                                    ›› Tap-to-Map
   Generate excitement around the           ›› Social Media Integration
   David Beckham Bodywear line at
   a leading, global retailer. Drive        Result:
   traffic to specific store locations,     Verve’s targeted mobile
   and participation in their mobile        campaign helped drive
   sweepstakes program.                     thousands of Beckham fans
                                            to select retail locations.
   Strategy:
   Geo-fence around store locations         CTR:
   in San Francisco, Los Angeles,
   and New York. Audience and               2.3%
   location-based audience targeting
   was also applied.
                                                                                                                                                                   5
Performance by location
targeting strategy
All location-based tactics exceeded the industry average CTRs of 0.4

percent. Geo-aware and geo-fence mobile programs led average CTRs.
                                      CTR by Targeting Tactic
                   0.00%     0.20%        0.40%           0.60%   0.80%    1.00%


         Geo-aware


          Geo-fence


                City


                 Zip


               DMA


           Audience

         Third party                                                               Success STORY // GROCERY
        place-based
           audience
                                     Industry avg. 0.4%
                                                                                   Cheers to location
                                                                                   Promotion:

Not all mobile                                                                     In-store“Brewniverse” event


inventory is equal                                                                 Goal:
                                                                                   Strengthen this high-end grocer’s presence in
A clear trend in 2012 was the strong performance improvement of                    local communities throughout Texas and raise
                                                                                   awareness of special products being promoted
campaigns that incorporated location-based strategies. Equally
                                                                                   through in-store events.
interesting was the effect location had on campaigns delivered across
                                                                                   Strategy:
premium local media properties, highlighting the synergies between
                                                                                   Utilize dynamic, geo-aware mobile ads to
location and context.                                                              personalize messaging to users closest to the
                                                                                   grocer’s store locations.
Both national and local inventory exceeded exchange-based inventory,

which is known to be unreliable in terms of location quality, anywhere             Execution:
                                                                                    ›› Expandable
from 3X-to-5X while holding location-based tactics constant.
                                                                                    ›› Interstitial
                                                                                    ›› Tap-to-Map

                       Impact of Quality Inventory on CTR                          Result:
                2.0                                                                By combining effective creative with location
                                                                                   targeting and by putting “user distance to store
                1.6                                                                from location x” into the creative, KPI bench-
                                                                                   marks were exceeded and the grocer continued
                1.2
       CTR




                                                                                   their mobile campaign with Verve through the
                0.8                                                                holidays and into 2013.

                0.4                                                                CTR:
                0.0
                           Premium                Premium         Exchange-based
                                                                                   4.1%
                             Local                National           Inventory


                                                                                                                                      6
Beyond the click, users are engaging with
brands on mobile devices in many ways
Having clear and meaningful calls-to-action entice

user engagement especially when coupled with

location utility such as pointing out where a user is

relative to a store location.



                        Interaction Rate

 Calls                           9%

 Video                           4%
 Maps                            3%

 Calendar                        3%
 Social                          3%




Success STORY // CONSUMER ELECTRONICS

Driving foot traffic
PROMOTION:
Printer sales
                                      Execution:
Goal:                                  ›› e-Circular
Increase awareness of a                ›› Tap-to-map
specific printer brand among           ›› Tap-to-call                   Result:
consumers and drive traffic to
                                       ›› Intersitial                   Overall, the campaign was a success achieving the
physical retail locations that
                                       ›› Geo-aware expandables         goals determined by the advertiser. Expandable
sold the product.
                                                                        and mobile e-Circular executions were the highest
                                       ›› Utilize third party offline   performing, with engagement rates exceeding the
Strategy:                                 shopper data to increase      industry average.
Leverage multiple targeting               likelihood of reaching
strategies to reach the right             consumers in market           CTR:
consumer who is in the market
for a new printer at the right
                                                                        2.4%
place and time.


                                                                                                                            7
Technology
driven
optimization
An important element of any mobile
campaign is being able to measure success
and optimize in real-time. Verve has
developed a proprietary heat-mapping
technology that allows advertisers the
opportunity to see where actionable mobile
consumers are across the 210 DMAs. In
this example, we see where specific auto-
intenders are in proximity to a leading auto
manufacturers’ dealer locations.




  Mobile leadership with a difference
  Verve is the pioneering leader in location-based mobile advertising. Our customers are national brand

  advertisers who want to engage consumers on their mobile devices with location-aware, data-driven and highly

  targeted marketing.

  We also serve local premium publishers and channel partners across the nation, delivering the platforms and
  services they need to power and monetize their mobile offerings.

  The Verve location powered technology platform and the proprietary data it generates are revolutionizing mobile

  media and advertising. It enables consumer and content brands to reach their desired audiences on the go, out and

  about, and closer to the buying decision than ever before.

  Verve has been leading the way in location powered mobile advertising

  since 2005 and has offices in New York City, Washington DC, Atlanta,
                                                                                         For more, please visit:
  Detroit, Dallas, Chicago, San Francisco, and San Diego.
                                                                                         vervemobile.com
                                                                                         Let’s connect:
                                                                                         facebook.com/vervemobile
                    New York                Washington DC        San Diego
                                                                                         twitter.com/vervemobile
                    1450 Broadway           4701 Sangamore Rd    5973 Avenida Encinas
                    41st floor              Suite N220           Suite 101               linkedin.com/company/vervemobile
                    New York, NY 10018      Bethesda, MD 20816   Carlsbad, CA 92008
                    1-800-595-0842          (760) 479.0055       (760) 479.0055          or you can contact us:
                                            (760) 479.0056 fax   (760) 479.0056 fax      insights@vervemobile.com


                                                                                         © 2013 Verve Wireless, Inc. All rights reserved.   8

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State of the market location-based power mobile advertising report for 2012 - verve mobile

  • 1. Volume 1 State of the Market Location Powered Mobile Advertising Report 2012 Annual Review
  • 2. Verve is the expert in location powered mobile advertising goals of this report ›› Identify and define the principal strategies and approaches to location-based mobile advertising being leveraged by advertisers ›› Provide some quantitative distribution of the relative utilization of those different approaches ›› Show distribution across key industry categories of location-based mobile advertising ›› Analyze performance data across the location spectrum ›› Provide examples of successful location powered campaigns Unique targeting technology, unique audiences, and high quality location data make Verve the key partner for national and local advertisers looking to leverage location data to make their mobile advertising more effective. METHODOLOGY Verve has analyzed 2,500+ mobile campaigns As the largest location-based mobile advertising delivered during 2012, most of which were business in the U.S., Verve serves many of the location powered: leading brands and publishers and offers the most ›› By strategy of location targeting ›› By industry/vertical or category insightful data sets for expert-level reporting on ›› Click-through rates (CTR) ›› Performance by strategy the state of location-based mobile advertising. ›› Creative execution type 2
  • 3. Types of location powered mobile advertising Location targeting enables advertisers to be smarter in how they place media so that impressions are not wasted in areas where the advertiser has little or no presence. Advertisers are targeting particular market geographies from metro areas, sets of zip codes, even zip+4, to specific miles radius around particular locations. They are also targeting audience segments where the segments are built on location-based data. ›› Geo-aware Geo-aware campaigns use real-time location data to deliver specific, Success STORY // FINANCIAL often dynamic, messages to the user based on their distance from the Making it epic nearest retail location or proximity to a particular location. Promotion: ›› Geo-fencing Credit card sports affiliate program Advertisers targeting users based on a set distance (often miles) from a location of interest such as a store, or physical site where known audi- Goal: ences frequently visit. Consumers outside of the geo-fence would not Increase program enrollment and be served the ad because they fall outside of the location parameters. brand awareness This technique is particularly useful for advertisers looking to drive foot Strategy: traffic to physical store locations. Content and location targeting to reach football fans at premier ›› Location-based Audience Data Targeting sports venues Advertisers targeting mobile users by leveraging anonymous third party offline data such as demographic types, transactional or Execution: psychographic attributes which are then coupled with high quality ›› Rich Media location data to determine audience “clusters” by geographic area. ›› Device Type (Smartphone + iPad) Result: ›› Place-based Targeting Football fans responded to this mobile Advertisers targeting users based on audience segments that are built campaign with great excitement based on a user’s location and time. Verve has worked with a third generating a CTR 5x higher than the party data provider, and more recently launched its own platform, that industry average. slices the entire U.S. into micro-grids and associates multiple data points to each grid. So, if an advertiser wants to target “soccer moms” CTR: Verve would recommend targeting location grids that score high for that type of audience such as suburban supermarkets or playgrounds 2.0% during school hours, on weekdays. 3
  • 4. Mobile campaigns leveraging location targeting outperformed non-location targeted campaigns by a factor of 2x As 2012 progressed, advertisers began to get more Location Targeting by Strategy sophisticated in their targeting approaches, leveraging City Zip* Geo-aware 4% more geo-fenced, geo-aware and location-based audience 6% 14% targeting. In 2011, only 17 percent of Verve campaigns were geo-fenced or geo-aware but in 2012, 36 percent of Verve Geo-fence DMA campaigns leveraged geo-aware or geo-fencing strategies. 30% 22% 2x Audience** 24% Performance Increase * Zip includes Zip+4 ** Audience includes third party data and place-based targeting Who is using location powered advertising? Of the 2,500+ mobile campaigns delivered on the Verve Platform and analyzed for this report, most utilized location targeting, which is not surprising as Verve’s focus is location targeting. The chart below shows the percent of campaigns run on the Verve Platform that were location targeted by advertiser industry/vertical. Advertisers with physical, brick-and-mortar locations and those with inherently local products like real estate led in the percent of campaigns that used location targeting. Location Targeted Campaigns by Vertical Grocery Political Healthcare Lottery Real Estate Education Automotive Restaurant Telecom Retail Travel Financial Consumer Goods Consumer Electronics 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 4
  • 5. Restaurants and retail led all advertisers in the use of geo-aware and geo-fenced campaigns Advertisers are increasingly using dynamic, location powered creative to facilitate traffic to the nearest retail or restaurant location. Consumer goods companies were also successful in driving mobile users to the nearest grocery or retail location where their products are sold. Audience targeting is also a popular tactic, allowing an advertiser to focus only on geographic clusters that index highly for their desired demographic . DMA / Zip / Zip + 4 Geo-aware or Geo-fenced Audience RESTAURANT RETAIL TRAVEL CONSUMER GOODS 7% 13% 13% 21% 50% 55% 30% 43% 32% 49% 57% 30% TELCO FINANCIAL AUTO POLITICAL 3% 22% 20% 28% 27% 11% 10% 69% 67% 70% 73% Success STORY // RETAIL Location is fashion-forward Promotion: Execution: David Beckham Bodywear ›› Dynamic ›› Expandable Goal: ›› Tap-to-Map Generate excitement around the ›› Social Media Integration David Beckham Bodywear line at a leading, global retailer. Drive Result: traffic to specific store locations, Verve’s targeted mobile and participation in their mobile campaign helped drive sweepstakes program. thousands of Beckham fans to select retail locations. Strategy: Geo-fence around store locations CTR: in San Francisco, Los Angeles, and New York. Audience and 2.3% location-based audience targeting was also applied. 5
  • 6. Performance by location targeting strategy All location-based tactics exceeded the industry average CTRs of 0.4 percent. Geo-aware and geo-fence mobile programs led average CTRs. CTR by Targeting Tactic 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% Geo-aware Geo-fence City Zip DMA Audience Third party Success STORY // GROCERY place-based audience Industry avg. 0.4% Cheers to location Promotion: Not all mobile In-store“Brewniverse” event inventory is equal Goal: Strengthen this high-end grocer’s presence in A clear trend in 2012 was the strong performance improvement of local communities throughout Texas and raise awareness of special products being promoted campaigns that incorporated location-based strategies. Equally through in-store events. interesting was the effect location had on campaigns delivered across Strategy: premium local media properties, highlighting the synergies between Utilize dynamic, geo-aware mobile ads to location and context. personalize messaging to users closest to the grocer’s store locations. Both national and local inventory exceeded exchange-based inventory, which is known to be unreliable in terms of location quality, anywhere Execution: ›› Expandable from 3X-to-5X while holding location-based tactics constant. ›› Interstitial ›› Tap-to-Map Impact of Quality Inventory on CTR Result: 2.0 By combining effective creative with location targeting and by putting “user distance to store 1.6 from location x” into the creative, KPI bench- marks were exceeded and the grocer continued 1.2 CTR their mobile campaign with Verve through the 0.8 holidays and into 2013. 0.4 CTR: 0.0 Premium Premium Exchange-based 4.1% Local National Inventory 6
  • 7. Beyond the click, users are engaging with brands on mobile devices in many ways Having clear and meaningful calls-to-action entice user engagement especially when coupled with location utility such as pointing out where a user is relative to a store location. Interaction Rate Calls 9% Video 4% Maps 3% Calendar 3% Social 3% Success STORY // CONSUMER ELECTRONICS Driving foot traffic PROMOTION: Printer sales Execution: Goal: ›› e-Circular Increase awareness of a ›› Tap-to-map specific printer brand among ›› Tap-to-call Result: consumers and drive traffic to ›› Intersitial Overall, the campaign was a success achieving the physical retail locations that ›› Geo-aware expandables goals determined by the advertiser. Expandable sold the product. and mobile e-Circular executions were the highest ›› Utilize third party offline performing, with engagement rates exceeding the Strategy: shopper data to increase industry average. Leverage multiple targeting likelihood of reaching strategies to reach the right consumers in market CTR: consumer who is in the market for a new printer at the right 2.4% place and time. 7
  • 8. Technology driven optimization An important element of any mobile campaign is being able to measure success and optimize in real-time. Verve has developed a proprietary heat-mapping technology that allows advertisers the opportunity to see where actionable mobile consumers are across the 210 DMAs. In this example, we see where specific auto- intenders are in proximity to a leading auto manufacturers’ dealer locations. Mobile leadership with a difference Verve is the pioneering leader in location-based mobile advertising. Our customers are national brand advertisers who want to engage consumers on their mobile devices with location-aware, data-driven and highly targeted marketing. We also serve local premium publishers and channel partners across the nation, delivering the platforms and services they need to power and monetize their mobile offerings. The Verve location powered technology platform and the proprietary data it generates are revolutionizing mobile media and advertising. It enables consumer and content brands to reach their desired audiences on the go, out and about, and closer to the buying decision than ever before. Verve has been leading the way in location powered mobile advertising since 2005 and has offices in New York City, Washington DC, Atlanta, For more, please visit: Detroit, Dallas, Chicago, San Francisco, and San Diego. vervemobile.com Let’s connect: facebook.com/vervemobile New York Washington DC San Diego twitter.com/vervemobile 1450 Broadway 4701 Sangamore Rd 5973 Avenida Encinas 41st floor Suite N220 Suite 101 linkedin.com/company/vervemobile New York, NY 10018 Bethesda, MD 20816 Carlsbad, CA 92008 1-800-595-0842 (760) 479.0055 (760) 479.0055 or you can contact us: (760) 479.0056 fax (760) 479.0056 fax insights@vervemobile.com © 2013 Verve Wireless, Inc. All rights reserved. 8