If you are a proximity company, the data you are sitting on is GOLD. You have so much valuable data that you are probably not using for the benefit of your client, as well as that you can find ways to monetize it. Equally for advertisers or brands, you should really get your eyes up for proximity data and everything that you can do with it.
There are a lot of new and unknown terms for the proximity industry. Here, we will go through some of them to help you get a better understanding and to clarify what the terms actually means.
Attribution is all about understanding when a marketer or brand has displayed an ad, whether or not that person went back to the store after seeing the ad.
Why attribution and beacons together are key?Earlier, advertisers did not care about measuring the effect of their ad spend but rather spent time on measuring the click rate on ads. However, as they became more sophisticated, they wanted to know if an ad displayed resulted in visits to the store. GPS Lat/long isn't that precise - you won't know if the person is on the left side or the right side of the street. Therefore, it's difficult to be accurate with that kind of data. With proximity, however, we can with 100% certainty say that a customer visited the store because of the beacon interaction. If the beacon is located in the shoe department of H&M, we can know with 100% accuracy that the customer actually visited it. Therefore, proximity data takes attribution to another level where it gives a lot more security back to the advertisers where they can measure whether or not the ad resulted in a visit or not.
Retargeting means in short that an advertiser or a brand is advertising towards consumers, based on their past behavior. That could be that the consumer has searched for a website and being retargeted the next day, or the next couple of days, based on that search. A typical example of this is ads following you on Facebook based on your past search history. However, this has been a challenge in offline behavior. With beacons, we are able to do the same based on consumers that have visited the physical location. Segments can be created so that if you want to retarget someone in e.g. sports segment you can do so by going after consumers that have searched for sports, however, there’s a completely different thing to read sports compared to actually watching sports. Therefore, sports stadiums that have deployed beacons can now retarget those consumers that have actually been to the stadium. It’s a higher chance that this ad will have a better effect on the consumer by using proximity data.
Programmatic advertising is all about being smart about how to spend your advertising money. You can target segments, such as people who visit stadiums or people who travel frequently, so that advertising gets more precise. Data is key to target your specific user.
Demand side platform is a system that allows buyers of ads to reach multiple different websites who are looking to monetize their inventory. The inventory is the available slots for ads that the webmasters monetize their websites through.
Supply side platform is for the sellers of advertising. Put in all the inventory (the available ad placement on the platform) and make sure that those are being bought frequently.
In a Data Management Platform, the focus is on facilitating the whole ad ecosystem with a lot of data. Data Management Platform allows the advertiser to create a target audience based on the combination of many different parameters and data sources.
The Switzerland between the ecosystem and advertisersAt Unacast, we are neutral. All PSPs have valuable data, but not everyone has the expertise to scale and sell this data - Unacast can help to monetize the data. Even big companies with a lot of data come to us in order to monetize it more efficiently because they are not able to do so themselves. We take in all of your data. The structure does not matter because we will harmonize the data and align it with our taxonomy, built for the physical world. PSPs have clients that are spending money on advertising with retailers using your solution, but not using the data efficiently. We can onboard that data to the advertising platform of your clients. This way, they have access to their own users on the desired advertising platform.
ChallengesComplexity - many companies collect a lot of data in many different ways. We need to structure all the data in a unified way so that it is understandable and sellable.Education - beacons and proximity are still new. We are still in the phase of educating how companies can use proximity data and how advertisers and brands can benefit from this specific data. It is all about data management and processing.
The way forward
We are starting to see a shift in how proximity data is being used. Before it was all about sending push notifications to the consumers. Now, analytics, online advertising, and data monetization are becoming more important as we see companies utilizing the data in different ways. This will continue further as we will see shifts in more ways on how to utilize the data as more companies will take advantage of it which will show its true potential.