By Moran Treiser, Director of Sales
In a time where new innovations in the digital advertising world are being created almost on a weekly basis, one issue remains unsolved, tracking the “online-offline funnel”. This issue is the main concern of all the biggest brands in the real world – retailers, food & beverages manufacturers, travel agencies, auto manufacturers and many others. In their eyes, their advertising budgets are some sort of a gamble, in which the best they can do is improve their chances of “winning” a customer by advertising in the newspapers, billboards, Television, or in our interactive arena, the biggest and most visible publishers. They can’t do much more than that. For example, No one knows if a user went and bought a car because he saw a cool video commercial on Yahoo. The advertisers are just hoping that their marketing departments, along with their media agencies can “guess” the best locations to put their ads on.
To my opinion, we are on the verge of solving this issue. And the main reason for that are small gadgets that more and more people carry around everywhere they go including the bathroom – yes, I’m talking about our Smartphones. These little devices which allow us to communicate better with our friends and family, make video calls, check our emails, and play cool games, have inner GPS components. By using GPS technology, advertising companies, telecommunication companies and manufacturers can track the users, and realize if they actually create offline conversions to their “brand awareness” ads.Definitely, as users, this is something to be concerned of in terms of our privacy and must be regulated, however, this technology can open the doors for new perception within the digital advertising world, for two main reasons:
1) It will give the online advertising players the ability to track offline conversions. Let’s say I encounter a retailer banner, offering a 30% discount for the next week. By registering in the landing page with basic information such as my name and my phone number (by consent), I can be tracked by my Smartphone, hence the Advertiser or its media partner can know if I actually went to the store and made a purchase. Why would the user agree to put in his, or hers phone number in the landing page? The reasons are endless – a discount approval or barcode, a payment through a mobile wallet, or by the operator’s account etc. this is the easy part – the main issue here is that it’s possible.
2) It can improve Mobile advertising conversion rates and profitability. The advertising companies can show direct location based focused ads to users near a certain location, by that increase the level of interest of the user towards the ad and then – track the offline conversion and know whether the user actually went and made a purchase.
In order to implement this kind of tracking technology, there would be a need for a vast collaboration between advertising networks\agencies, publishers and telecom companies, however, once fully implemented, this technology can save a lot of wasted advertising dollars going to the “brand awareness” trash can, and shift them towards “smart” branding campaigns for the big advertisers out there.