- 8 months ago
Addressable Geofencing
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00:00At its most basic level, addressable geofencing offers household-level precision for advertisers
00:10who want to target addresses on mailing lists, digitally.
00:15When uploaded into our platform, we use plat-line data from property tax and public land surveys
00:20to build precise geofences around the addresses on the list.
00:24We then target the devices that we see in those fences with the advertiser's programmatic
00:30display and video ads.
00:32Or said another way, advertisers provide us a mailing list.
00:37The list is converted into highly accurate individual geofences around homes or businesses.
00:45Devices in those fences are targeted with ads.
00:48Easy peasy.
00:49Webinar done.
00:50Now go out and sell it.
00:51I'm kidding, of course, we still have a lot to talk about.
00:54But I'm kind of not kidding either.
00:57While it's valuable to be the knowledgeable, knowledgeable, knowledgeable, knowledgeable,
01:03the smart digital consultant, there's also value in keeping it simple.
01:07I was recently on a call with a client.
01:09I asked her if she ever targeted customers with a mailing list.
01:13She said, yeah, she had a list with about 11,000 names on it.
01:17These are folks she sends direct mail to on a quarterly basis.
01:21I asked if she'd like to extend the reach of her direct mail by placing display ads or
01:26video on the mobile desktop and other connected devices that we find at those addresses.
01:32Why, yes, she said.
01:35And we proceeded to set up the campaign.
01:37I call this tactic staying above the glass.
01:41It's based on the idea that anyone who buys a smartphone is really only interested in what
01:46happens above the glass.
01:49We inherently understand that when we press this button, it takes a picture.
01:53We know that pinching the map makes it zoom out and get bigger.
01:57And we automatically pull the slingshot back to launch the bird into the pigs without thinking
02:02much about how it all works.
02:05It's rare that someone asks, how does this app put bunny ears on my head?
02:10They just love that it makes for a cute selfie.
02:13Very few people ever take the phone apart to see what's happening under the glass.
02:18And only the rare few would really understand if they did.
02:22I encourage you to keep your conversations with advertisers above the glass.
02:27They want to know what the technology does, and they're less concerned about how it does
02:32it.
02:33Let's go ahead and get into the finer details, starting with the benefits of addressable geofencing.
02:40First of all, it's highly precise.
02:43As I mentioned, the targeting is based off of plat-line data from property tax and public
02:47land surveying information to maximize precision of addresses being targeted.
02:54No matter what shape a business or home's property is, our geofences will be custom-built to fit,
03:00meaning we'll be targeting only those devices we see on the property.
03:05Addressable geofencing is highly scalable.
03:08Up to one million physical addresses can be targeted per campaign.
03:12Consider that for a moment.
03:14Before addressable geofencing, if an advertiser wanted to target even a thousand addresses,
03:20each and every one of those fences would have to be built manually.
03:24That's no longer the case.
03:26And if you need to target more than a million, we've got a way you can do that, too.
03:30Now, you may be thinking to yourself, well, this isn't new.
03:33IP targeting has been around forever, and we could always target lists of IP addresses.
03:39Well, that's fair, but there are a few significant limitations to IP targeting.
03:44First of all, the match rate tends to be low, often coming in at less than 50%.
03:50I'll reveal addressable geofencing's match rate here shortly.
03:55Secondly, the entire IP address is needed for any kind of accurate location targeting.
04:01Due to privacy concerns with IPs, we are seeing more and more IPs come in truncated through
04:07the bid stream, removing our ability to precisely target with IP addresses.
04:14Or said another way, an entire neighborhood or more could have the same truncated IP address.
04:21That's not very precise.
04:23Finally, most IP addresses aren't fixed to a house unless the house has certain types
04:29of internet service.
04:32Now I mentioned I'd share the match rate for addressable geofencing.
04:36Using the client uses the USPS format for addresses, we are seeing match rates around 90%.
04:45Consider that.
04:46For every 1,000 names we're provided, we're matching around 900.
04:50That's amazing.
04:52And our team also analyzes those address lists with low match rates to implement additional
04:58logic for matching against the proper address.
05:04Addressable geofencing uses cross-device execution to target not only the smartphones found within
05:09the addresses being targeted, but also the laptops, desktops, iPads, and even smart TVs and
05:17OTT set-top boxes like Roku, Apple TV, and others.
05:22This means that addressable geofencing can improve the performance of other marketing tactics like
05:27addressable TV, direct mail, and other campaigns that target specific households by extending
05:34their reach and improving their frequency.
05:38The next benefit of addressable geofencing is foot traffic attribution.
05:42Like our other geofencing tactics, conversion zones can be set up to measure the number of
05:47users who were served an ad and then later came to the business's location.
05:52Bottom line, addressable geofencing may be one of the best ways that an advertiser can leverage
05:59their CRM data digitally.
06:01So, who is addressable geofencing right for?
06:06Well, the easy answer is anyone who has a mailing list or CRM data, or even anyone who
06:12wants to target addresses and is willing to acquire those lists.
06:18I spent the last week watching my mailbox to see what kinds of businesses are targeting
06:22my home and I ran across several that could extend their reach of their direct mail with
06:28addressable geofencing.
06:30Let's start with this Jeep catalog.
06:32It was mailed to me because I purchased some Jeep floor mats from them recently.
06:37I found the floor mats online, I bought them online, but now they have my physical address,
06:42so of course they sent me their catalog.
06:45And I have a confession to make about this catalog.
06:48While I am an early adopter of technology and an internet junkie, I mean I don't buy DVDs
06:54or books or CDs.
06:56Everything in my life is digital, but I love getting this catalog.
07:01There's just something about flipping through a catalog of Jeep parts and seeing things I
07:06didn't even know I needed.
07:07Have you ever seen paracord grab handles?
07:10Neither had I, and I sure didn't know I needed them for my Jeep.
07:15So it's not like search engine marketing or even search retargeting would have resulted in me buying them.
07:23But with a catalog, they can put things in front of me that I'm not searching for and still get me to spend money.
07:29Now that can be powerful.
07:31My next confession is this.
07:33Once I flipped through the catalog one time, it ended up in the recycle bin.
07:38In other words, their access to me was pretty short lived.
07:43Now let's imagine adding addressable geofencing to their strategy.
07:47They clearly have a list of addresses of past customers.
07:50They could upload that into our system and we could draw individual fences around each address with household precision.
07:57Meaning we're not targeting the neighbor who drives a Prius.
08:00We're only targeting the Jeep owner.
08:04Then they provide us display ads or programmatic video and target only the devices in that home with their ads.
08:11They can show the ads four or five times per day.
08:14Actually, they can show as many as they like.
08:16Four or five daily impressions is just a default recommendation.
08:20And then they can show the ads for as long as they like.
08:22This gives them a lot more opportunity to get their brand and their products in front of me on my desktop, laptop, iPad, mobile, even my connected device.
08:33Imagine the impact of that kind of access and reach.
08:37My next story is about my son Tanner, who started his freshman year at Kansas State University this year.
08:43If you have kids and they're teens, you probably are aware of all the direct mail that comes from colleges and universities.
08:51For the last several years, we couldn't go to the mailbox without getting some kind of postcard or flyer about college or college loans.
09:00And like my Jeep catalog, it pretty much all went straight into the recycle bin.
09:04Unlike the Jeep catalog, most of it had a lifespan of less than a few seconds.
09:08Now imagine one of those colleges using addressable geofencing.
09:14They have a list of high school seniors and they upload it into our system.
09:18We draw individual geofences around each of their homes.
09:21And then we start showing the college's display ad or programmatic video ads on all of the devices in the home.
09:29Now we're reaching the senior on his smartphone.
09:33And by the way, you've probably heard me mention that the average person is now spending over three hours a day on their mobile device.
09:40So that's a lot of opportunity right there.
09:43But we're not limited to the senior's smartphone alone.
09:47Cross-device matching allows us the opportunity to reach them on their computer or connected device too.
09:54And we're able to reach the parents in the household on their devices as well.
09:58So, now a school that might not have gotten the senior's attention is making itself known to mom and dad,
10:04who probably have some say in the decision.
10:08Of course, a question we sometimes hear at this point is,
10:11what about the other people in the house who don't need to see the ad?
10:15Will little sister in middle school also see the ads?
10:18The answer is yeah, they certainly could.
10:20But that's true of just about every kind of advertising on the planet.
10:24The ratio of intended relevant target to non-relevant target is going to be way lower with addressable geofencing
10:31than just about any other kind of advertising that we know of.
10:36The next piece I want to share is this one from Best Buy.
10:40It warns me that the service plan I purchased on my big screen TV is set to expire in a month.
10:46The goal of the piece is to get me to extend that service plan for another year.
10:50Now here's the funny thing about this piece.
10:52It was in an envelope addressed to me, not resident by the way,
10:56and it had the Best Buy logo in the top corner.
10:58And I had not been paying special attention to my mail for this webinar.
11:03I swear to you, I would have never opened it.
11:05The Best Buy near me closed recently,
11:08and I pretty much do all of my shopping for electronics online anyway.
11:11It's kind of a tempting offer, you know, because my television is nearly five years old
11:16and this plan will fix or replace it free of charge if anything goes wrong.
11:20But like I said, I would have never even realized that my service contract was ending
11:25if I hadn't been paying special attention to my mail for this webinar.
11:30How many other people on their list are the same way?
11:33How many wouldn't even give the mail the time of day?
11:38Now, how many of them spend four or five hours a day on the internet?
11:41And how many of them would take notice of a Best Buy display ad with a call to action like
11:48Renew Your Geek Squad Protection that they see several times a day for several weeks?
11:56See what I mean?
11:57See how powerful that could be?
11:59Somebody call Best Buy right now?
12:01Like, it's okay to bail on this webinar to call them.
12:04I mean it.
12:05The next piece I got was actually addressed to my wife, who is a third grade teacher.
12:11The piece came from Office Depot and was addressed to Emily McBee, Regency Place Elementary.
12:18Hmm.
12:18Did OfficeMax buy a list of teachers?
12:21Are they targeting past customers?
12:23It's hard to tell.
12:25But I'll bet that the retired couple three houses up from us didn't get this same piece of mail.
12:30That precise household targeting that comes with direct mail can now be extended to a digital ad.
12:37And here's the funny thing.
12:39Emily won't ever see this piece of mail because I grabbed it for my webinar.
12:45And even if I hadn't, I would have thrown it away, hoping to avoid her spending even more money on school supplies.
12:53Spouses of teachers, you know what I'm talking about, right?
12:55But with addressable geofencing, they could reach Emily on all of her devices and I couldn't prevent it.
13:01Now, I'm not going to go through every piece of mail that I got, but indulge me as I list a handful more.
13:08I got offers from the following industries.
13:11Home security.
13:12Garage door repair.
13:14Custom window treatments.
13:16Tree care.
13:17Decks and patios.
13:19Kitchen and bathroom remodeling.
13:21Carpet cleaning.
13:23Housekeeping.
13:24Hardwood floors.
13:25Hot tubs and pools.
13:26And of course, pest control.
13:29Every one of these industries believes in targeting households.
13:33I encourage you to call them as soon as possible.
13:36Start telling them how they can either extend the reach of their already effective direct mail piece,
13:42or if they aren't all that happy with their direct mail,
13:44a way they can still reach that same audience, but with more frequency on their many digital devices.
13:53Now, let's revisit the college senior scenario that I painted a minute ago.
13:58Not only can the college extend their reach and frequency through addressable geofencing,
14:03they can also measure results by setting up a conversion zone around the school.
14:08This way, if the senior who has been delivered an ad in one of the addressed geofences comes in for a visit,
14:16we'll be in a position to report that visit as close as the plus four zip code,
14:22which I'll explain here in a minute.
14:24In order to include a few more examples, I decided that I should branch out and see what other folks were getting in their mailboxes too.
14:40Our CRO, James Moore, was kind enough to share a couple of these examples.
14:45He got an advertisement from the bank, where he had a car loan several years previously.
14:50It was an offer for $200 to open a checking account.
14:54Now, how many banks have old customers in their database?
14:57How many banks would like to get their name, their brand, their $200 checking account offer in front of the people on that list?
15:05And how many of them would like more than a few brief seconds to influence those prospects?
15:12Addressable geofencing could target those users four or five times a day for several weeks.
15:19Now, maybe seeing that $200 offer again and again and again might finally sink in and influence you to go ahead and open that checking account.
15:31He also got several pieces from local restaurants, which makes sense.
15:34Target the neighborhoods that are within a certain radius of your restaurant.
15:39It's easy, right?
15:41Frankly, we already have some great strategies for targeting people that way.
15:45But add addressable geofencing to that list, and now you can target those prospects with household-level precision.
15:52And with our Zip Plus 4 reporting, the restaurants will even be able to tell which neighborhoods are driving the most traffic to their restaurant.
16:00And that could inform their other marketing efforts in a positive way.
16:04He got a handful of catalogs and retail shopping pieces from places where he had purchased clothing.
16:12As it was with my Jeep catalog example, those customer databases can be targeted with addressable geofencing to encourage past customers to come back.
16:21Remember this stat?
16:23It's 5 to 25 times harder to acquire a new customer than it is to retain an existing one.
16:30If there's any truth to that statement, it makes sense for anyone who has a list of past and current customers to utilize addressable geofencing.
16:41Now allow me to strengthen your resolve with some powerful statistics.
16:46Let's start with this classic marketing stat.
16:48It can take up to 18 to 20 touchpoints to reach a customer for the first time.
16:55In our world of targeted advertising, we show multiple impressions to our prospects.
17:00Whether we're using classic site retargeting, search retargeting, geofencing, or addressable geofencing, we know there is value in showing the ads to users numerous times.
17:10And if the advertiser has already targeted them with a direct mail piece, newspaper, or television, well adding digital to that mix can only increase those valuable touchpoints.
17:21Speaking of direct mail, according to the USPS, there were 121.2 billion pieces of mail received in US households in 2017.
17:33And even though the volume of direct mail as a total may be going down, its percentage of mail is going up.
17:39Well, because more people are choosing paperless billing and using the internet in place of the mailbox.
17:48Catalog ordering, paying taxes, renewing a license, signing a child up for dance, all these things have migrated from the mailbox to the web.
17:59Might it also make sense for advertising to make that same migration?
18:03That's not to say that direct mail isn't effective.
18:07In fact, it's one of the most effective medias around, boasting a pretty impressive household response rate of 5.1%.
18:15That's pretty awesome.
18:17And if you've attended many of our webinars, then you know of the value of blending traditional media with digital media.
18:24And that's why I'm so excited about this next statistic.
18:27Marketing campaigns that used direct mail and one or more digital media experienced a 118% lift in response rate compared to using direct mail alone.
18:40I gotta say, that is the kind of information that should really get the attention of any business that is currently only doing direct mail.
18:50Of course, response rate is important, but what about actual conversions?
18:54Get this, direct mail combined with digital ads yield a 28% higher conversion rate than direct mail alone.
19:04Now, if you're thinking what I'm thinking, then you're probably already planning your prospecting calls to sound something like this.
19:12Mr. Business Owner, I know how enthusiastic you are about your direct mail campaign, and I think it's fantastic that you're getting great results.
19:20What would you say if I told you that I found a strategy that could increase those conversions by as much as 28%?
19:29I know, right? That's powerful stuff.
19:31And I hope you get to use it to get the attention of those business owners who haven't realized the impact of combining digital with their traditional media.
19:40Now, speaking of conversions, let's have a quick conversation about conversion zones and measuring total visits from those to whom we served ad.
19:49And I've mentioned this a couple times throughout the webinar, but here's how it works.
19:55Not unlike our other geofencing strategies, we can build conversion zone fences around those brick-and-mortar businesses that get actual customer visits.
20:05We can then provide a report showing the number of visitors who come to the business having been served an ad.
20:11We can even show the advertiser where the visitors came from as close as a zip code plus 4 area.
20:21Now, that is a specific delivery route, meaning the actual path the mail truck travels in a single drop-off.
20:30And according to the USPS.com, usually this compromises 10 to 20 homes or locations.
20:37Consider the granularity of that.
20:41Mr. Advertiser, it looks like you had three conversions from this group of 20 houses.
20:46Two conversions from these 15 houses.
20:49Two more conversions from these 12 houses.
20:51And so on.
20:53Of course, if your advertiser doesn't have a location for their prospects to visit because they go to them.
20:58I'm talking about plumbers and landscapers and pest control technicians, that kind of thing.
21:03It doesn't take away from our ability to target the specific addresses.
21:08They just won't be able to use the conversion fence to measure the results.
21:13Of course, when they find themselves doing a lot more work in the neighborhoods where we have implemented addressable geofencing,
21:20that should be pretty compelling evidence as to the impact of the campaign.
21:25We'll see you next time.
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