Mobile Advertising & Targeting - Ep 39

Foreign.

Welcome everybody to this edition of CPG Insiders. I'm your host Mark Young with my co host Justin Gerard. And in our last episode, we talked about over the top television, closed circuit TV, YouTube, and at the end of the program, Justin, we told people we're going to come back and we're going to talk about mobile and targeting and how we can use that smartphone that everybody has in their hand to sell people more consumer packaged goods.

Yep, you got it.

So let's lead off. So let's start with what are some of the tools that are available for us? I mean, yes, we can do Facebook or TikTok or Instagram. All those things are on a mobile phone.

Right? Right. You've got your social media. Right. So outside of your social media, there's a lot of different things that we can do. So in case you didn't know, Mark, and I know sometimes the Internet gets confusing for you, but, well, it's a fad.

I don't think it's going to last, to be honest with you, but go ahead.

So we engage in so much other content on our phones and online. I mean, we bas computer in our hands. So what we're able to do, and I apologize for everyone who didn't know this information, but essentially we are collecting data on everything you do.

Yeah, that phone is a tracking device.

Right. So you just have to understand that the conveniences and the wonderfulness of the phone that we all enjoy, just realize that you're providing data to people to try to talk to you in a new way.

And let me, let me add something else. When you use apps on your phone, such as the Weather or Facebook or a number of various apps, oftentimes you have given those apps permission to track your location, which means when you go to the gym, when you go to Walmart, when you go to the doctor, when you go to work, your phone knows it. For those of you who may have noticed, like in the case of an Apple phone, you might notice after you have an Apple phone for a few days, all of a sudden it'll say 27 minutes on your way home and you're 15 minutes away from work because the phone actually starts to develop, learn your patterns and starts to understand, okay, this guy lives over here, he's working over there, and it starts to incorporate itself into your life. But think about the amount of data that's being captured on you. And I want to end this not in the show, but I want to end this conversation with something that was said by the former director of The CIA under Ronald Reagan. And he said in an interview back in the Reagan days during the Cold War, we never would have imagined that Americans would just voluntarily give up all of their personal information and all of their location information. We never dreamed of, of a world where we could just track everybody anywhere. Because Americans would voluntarily give it up.

Yep. And that's where we're at. So on that note, think about this, because there's two different pieces of this conversation. One is, let's hone in right now because I think, Mark, you started the conversation. Well, in mobile specific advertising.

So this doesn't count. My flip phone, right?

Nope. No, it doesn't. Nope. It's different than your landline as well.

I don't have a landline. We have landlines in the office. I don't have a landline at all.

Look, Mark, I'm not judging.

We just got rid of it.

I am laughing at it.

I gotta admit. It wasn't that long ago.

Yeah, I figured that.

What's your landline?

But he still has his fax machine. Anyway, so you're on your, on your phone. So how can we. First off, mobile advertising is extremely powerful. Why? Because of the usage. Because now our mobile phones have literally become an extension of ourselves. We do everything through our phones. We are capturing our life moments with the cameras on our phones. We're posting it to the social media. We have our credit cards attached to our phones now, so you don't have to have credit cards. We're literally paying with our phone. Right.

People actually have an emotional addiction to their mobile phone.

Exactly.

Will panic. Think about it. People will panic if they leave the house and they get halfway down the.

Block and they don't have their phone.

That's why I forgot my phone. I left my phone at home.

Right.

For me, I went years without having a mobile phone. I mean, they weren't even invented yet. And we, and we made it through life. We managed to survive. But people are really tethered.

Yes, yes, they are. And for all of our listeners, what I would like you to do, if you know how to do this, go onto your own Google Analytics and check to see where is most of your website traffic coming from. Because I guarantee for most of you, at minimum, 60% of your website traffic comes from a mobile phone. At the minimum. Right?

Yeah, I would agree with that. So he's talking about looking at your company website for your product. Go there, look and see and you can, in your Google Analytics, you can look up something which is called device.

Yes.

And it will Tell you whether it's iOS, whether it's Android, whatever the case is, or if it's tablet.

Yep, exactly. So look there, you're going to notice that most of it's mobile. Why? Because this is our tool. So because it's our tool, we do everything with. We can track all of that.

And oddly enough, by the way, it's even mobile for 65 plus.

Yes, absolutely, absolutely. So when we're looking to reach a certain person at a certain moment, we can do that through mobile advertising. Because with our tracking, there are beacons in your phone, like Mark talked about. So we can track your activity, what you do, and then we can build out segments. So if we're looking for, just as an example, we're selling a. An exercise product, maybe it's a recovery, maybe it's a protein powder, whatever the case may be. So we're looking for someone who's really active. Well, because you take your phone to the gym every time you go to the gym, you go three, four, five, six times a week. Boom. We know that you're an active person who's exercising. You fit into our segment. Now, then we can see we're looking for.

Maybe now can we get specific with what kind of gym?

We can.

So we could say, I only want a CrossFit box.

Absolutely, we can.

So then I know I've got extreme people.

We can. We can pick out. If you're only going to Planet Fitness or LA Fitness or Lifetime, we can pick the exact type and target those types of people. We can on a, I guess, more relevant basis as well, for all of our clients who are in retail. And if you're in a position where you have maybe only one retailer that your product's in, or you have one retailer that's not performing well and you need to really get that one performing better, great.

So here in Michigan, I'm in Walmart, I'm in Target, I'm in Kroger. But my Meijer numbers are really low and I can't add Meijer to my national ad campaign because it doesn't make sense, or HEB or Publix, whatever the case is. So I could throw them some additional support using the mobile devices and I could actually choose people who only go to Publix or who do go to Publix, not only, but they go to Publix once a week or they go to Meijer once a week, or heb, whatever the case.

Right. Or yet to your point. Or we could say, hey, I only want to reach consumers that actively Go to Meijer. So we're going people that are there a couple of times a week. Great. We can segment it out. So we're hitting those people only so we know that we're getting not only people that are heavy users. Absolutely. Because here's some mistakes that can be made with geotargeting a lot of the time. Right. And many other platforms. What you can only do is build a circle around a location. So you're making an assumption there. So let's say you're going after Walmart and I'm going to geotarget a five mile radius, for example, you're making the assumption that everybody in that five mile radius goes to the Walmart. But where I live, for example, there's a Walmart, but then just down the street's a Meijer. I shop at the Meijer more than I do the Walmart. But I probably was hit with your ads. It's gonna be really hard to convert me to go to that Walmart. Right, right.

And especially when we think of drug.

And drug, it's really impactful. You're right.

Right. Because we know that Walmart consumer or WALGreen Consumers are 86% loyal.

Right.

CVS Consumers are 83% loyal.

Exactly.

So if I'm trying to drive them to a Walgreens, but they're a CVS shopper.

Right.

Chances are, even if they like the product, there's only a 13% chance that I can get them to cross the street and go to that cvs.

Exactly. So if all you did was build that radius around it, you wasted a lot of ad dollars on people that you will never convert at that location.

So if I'm only in Walgreens and I'm not in cvs, then I really want to go after the mobile devices that show up at a Walgreens twice a month or three times a month.

Exactly.

And when do I want to hit them? Do I want to, do I want to hit them when they're in the parking lot or do I want to hit them at home? What do I want to do?

That's, that's, that is a great point. So what's fantastic about a lot of the mobile technology now is that a lot of the really, really great tech is based on longitude and latitude targeting as opposed to just an address. So we can make those distinctions. So we can actually. And based on your product, it might be different. Right. So based on the type of product you have, for example, maybe you have a product that is an outdoors product, maybe it's A mosquito bite repellent or something of that nature. So you might want to think about what we're going to do with our ad campaign is let's take a look at where some of the more active areas around there. And we're going to build our own type of funnel through there to hit them while they're in these active areas. And then we can also hit them when they're in the parking lot going for their shopping trips so that we've got that frequency and build that funnel within this ad campaign paint. We can do things like that. It's really creepy, but we can, we can also base it based on the weather. These platforms can actually adapt how they serve your ads based on what the weather is.

So let's say I'm selling a cracked skin formula where cracked skin doesn't really happen until under 25 degrees.

Right. So it can translate.

Or I was selling sunblock and I don't want it unless people are over 70 degrees.

Right. Or it's raining that day, so no one's outside in the sun because it's downpouring. The tools can actually adapt.

So if I'm selling umbrellas, you're good to go.

Right.

And I wait for it to rain. And I wait for it to rain umbrella. So this is selling into the need. So and on the location thing, I could base my location on where my products for sale.

Yep.

Or I could base my location on, on where I know my consumer hangs out, which might indicate the right consumer for me.

Right. And you can also build out, these tools have the ability to build out segments based on their activity. So if you have a certain type of consumer, if you really know your target market, then they can build out a segment that is called Active Moms, for example, based on all these different activity triggers saying they buy these kids products and they're going to the elementary school and you know, they, they bought, you know, lunchables, whatever the case may be.

Now how are we getting that information? Now I, I get it that my phone tells you I'm at Walmart, but how's my phone telling you what I bought at Walmart?

Well, if you've got your credit card attached to your phone, then all of the data of your purchases go straight through. So that credit card data is being sold out. All this data is being sold out.

So if I'm using Apple Pay or have a card in my wallet, is it still going to tie if the car is in the wallet?

Yep, it still will. And additionally, it doesn't necessarily have To So sometimes it's not going to depending on what you use and how you use it. Some of these providers are buying first party data. So they're buying data directly from MasterCard, they're buying it directly from Visa, things of that nature. A lot of the times they're layering in different data such as IRI data. See okay, these purchase behaviors. So these are the people that are buying these sorts of things might not necessarily identify you personally, but they can build out segments based on the activities in the category.

Are there places that are prohibited? So as an example, can I not buy people that are visiting a doctor on a regular basis?

Correct. So you. Yeah. Right. And you can't. There are a lot of, you know, HIPAA laws that will not be crossed. So we're not going to be able to go into anything of that nature. So.

But I could get the gym.

Yep.

I could get arrest restaurants, people that I could go after. People who dine out a lot.

Yes. Without a problem.

Or could I reverse that and say people eat at home because their phone is not in restaurants.

Yeah.

So I could actually flip that script.

Yep.

And say give me phones that don't go to a lot of restaurants.

Yeah. And they can cross their purchase data to see they buy a lot of in home foods.

Can I find out what kind of.

Restaurants they go to based on the location?

So if I knew they went to a lot of pizzerias, then I could target them with my new at home frozen pizza.

You can do that. It's really extensive what we can do, how close we can get and you can even to your point, they also layer in the time of day. So what they can do is based on these users past history, when they're engaging in ads, they also can build them into different segments so they can understand these people are engaging in a lot at night. Okay. After 10 o' clock or they're somehow at the lunchtime in work. Okay. These are the people that are at their lunch. They're on their phones doing their things. Let's hit them there if that's of interest to you.

Right. Because I could know they're at an office building.

Exactly. Yeah.

Or they're in a factory. If I'm trying to pitch factory for something to do, factory workers, who knows.

And they also leverage. They also leverage in when we really get down to a behavioral standpoint, they can leverage the apps as well. Because again, whenever you download a new app onto your phone, you're saying hey, access to my data. So not only can they Understand the information you provide to that app. But then they can also see all the different apps you have on your phone to see again, what are your interests, what are the things that you're into, whether, whether it is fashion, whether it's apparel products, political affiliations, sports, you name it. They can start building out these segments to understand really who are you?

So they might look and say, oh, this guy has the Fox News app and he's got Breitbart.

Right.

So he's probably a conservative.

Exactly.

So now we know, okay, he's a conservative. Maybe he's the right person to sell gold and silver to.

Right. If that, that's part of your targeting. Exactly. Okay, exactly.

So where's the risk? Is there, are there any downsides to this?

Not really. So when you, when you think about, when you're leveraging mobile advertising, mobile advertising is a great piece to have. And really any campaign, especially for campaigns that are trying to drive into retail because of how close we can get, how we can really, that's as close to the purchase as well as most of these providers also are able to provide some great insight, which is really tough to get a lot of the times when from an attribution standpoint in digital media for a retail space. So you can get foot traffic studies to show all out of all the people that engaged in the ad here, somebody actually went to the store.

So I was going to ask you about that. So there are some attribution models where. Let's use Walmart as an example. We could show through this particular. Through one of the platforms, we could show people that their advertising is literally driving people into the Walmart store.

Yes.

So if we wanted to demonstrate to the Walmart buyer that we're spending money to bring people in your store, we could literally show them to that and show them how many and how the effects. So explain that a little bit.

Absolutely. So what they're able to do is obviously before you start your campaign, you build out your consumer segment. So here's our target, here's what we're looking at. So at the end set of that campaign, they build a control group that is identical to your target. And then throughout your campaign, they're going to track, okay, here are the people that actually got ad impressions and here are our control group that didn't.

Okay, so I'm looking for moms, right? I'm looking for moms with $75,000 and above income who shop at Walmart.

Yep.

So they're going to go find 1,000, let's say 1,000 or more, probably more. More of those moms who are not being shown my ad. And during this given period of time, let's say it's a 60 day window, they're going to say, okay, moms who didn't see your ad went to Walmart 2.5 times.

Right.

Or 27% of them went. However we break it down, right. Then they're going to take that same group of moms, but it'll be the, it's the AB split. So this is the B. They got to see our ad for our product in Walmart and now we're going to trace their phone behavior and we can show that they did go to Walmart. Now I'm going to say that I've seen demonstrations of this where for our own clients. These aren't demonstrations, these are real reports where the lift of going to Walmart doubled or even more than doubled during a time period of the people who went to Walmart. Where we can say people who saw the ad for this product were 2 1/2 times more likely to show up at Walmart?

Yes.

Now can we say absolutely for certain they were there because we gave them an ad and they went and bought the product? No, but what we can say is a scientifically valid number of people who look just like them went twice and a scientifically valid group of people who saw your ad went there three times. So what is the other variable? So you have to make a certain amount of assumptions, but this is impressive stuff to show your buyer at Walmart.

Absolutely. And it's also really great to go in there because you have the numbers to say here. Mathematically we drove this many thousands of people into the doors and buyer into your set.

And as a rule, the POS number did reflect it, right?

As a rule it will.

So the beauty of it is we can tell our buyer, look, my sales are up. And you see, my sales are up. But now let me show you the real value I bring to Walmart.

Exactly.

Because I'm not just selling product, I'm driving new people or more frequent visitors into your store. I'm the reason.

Yes.

They're not picking me up because they're here. I'm the reason they're here.

That's what every buyer wants to hear. And what's beautiful because of the technology that we have. And when you think about your mobile phones and the interaction you have with it, the, the creative abilities that we have to serve a message are incredible. The rich media ads.

Yeah. So what are our options here?

So you can create dynamic ads. You can create just static ads. So when we talk about static ads is what you're used to. It's just here, you know, served a banner ad. Banner ad. You can serve rich media or dynamic ads. So you're serving ads that are going to interact with the user. So they click on the ad. It can expand and then it can do anything that you want it to do. So as an example, we can build an ad that has. It serves. Maybe you have a really strong commercial that serves. So it serves that. And then click to expand. And then now there's this beautiful store locator that the users can actually engage with to see where is the actual location. And it's a map function, so they go the extra mile. They can. There's a lot of really cool ads that you can almost gamify the experience. So you can create this interactive experience to do whatever you want. Maybe you have a, maybe you have a shave product and so you literally gamify to show how your product. They can use their finger to shave the guy's face or something like that.

I saw an old version of this for shaving. It was really cool. And it was, what's your score? And it was, how many strokes do you need to shave?

Shave?

And can you lower your score like a golf game? Can you lower the number of strokes that it takes to shave?

Yeah, it's really. I mean, these are all the things that can be done through these devices because of the technology that are on there. So it's not. You're not just limited to serving a banner ad here. You can literally create whatever type of engagement you want to with these consumers, depending on the story you want to tell. And that's powerful.

Well, I'm going to tell every person listening right now. We know who you are and where you're located. We can find you. Now can we actually find you at your address? No.

No.

But can we find you?

Yes, I sure can.

So it's not about finding one individual, although I'm sure there are government entities who, at the NSA who can do.

This, who are not listening to this at the moment.

But we can find you. If you're a golf fan, if you go to golf courses, we know you're a golfer. If you go to sporting goods stores, we know that you like that. If so bowling alleys or, or anything. We could literally track people based on their behaviors.

Right, right. And the beauty of this type of advertising as well is that consumers are now so used to it that it's Non invasive. And that's the key.

So then it's really bad when you pick up your phone and your wife says, honey, why do you keep getting ads from strip clubs?

Yeah, well, unfortunately, fortunately, you're caught.

Phone's been at a strip club. Although does anybody really trace strip clubs? I don't think anybody's trace. You could though, right?

You could. Do they? Sure. Other strip clubs might. So everyone knows now do not take your phone anywhere near it. So good advice, Mark, Good advice.

You can turn those signals on. Matt, our engineer, who'd be an expert there. Matt, you can turn.

Yes.

Those options off, right?

Yeah, you can, but then you lose.

Functionality on your phone. So I think most people have some of those.

Yeah.

You know, kind of enabled.

Yeah, most of them don't turn it off.

I have a tendency to set my phone so it's only enabled when the apps.

When the apps open. Me too.

However, we forget and leave the apps.

Open all the time.

How many times have you checked the weather and then not actually close.

Right. And it's open in the background.

It's open in the background.

Yep, exactly.

Yeah. So.

Oh yeah, you can pull reports on all of that data. Exactly.

So folks, that kind of gives you an idea of how this works. It probably from a consumer, it probably sounds a little invasive and creepy.

Yep.

From a marketer standpoint, it's a treasure trove of data that we can build based on what you are. Just start to use your imagination right now. Start to think about what's the behavior of my consumer. Not just do they go to Walgreens or Walmart or Meijer, but where else do they go? What are the things they do that I could actually assign a value to that and start to highly, highly target my advertising. There's an old joke in advertising which has been around for 100 years and the old joke is half my advertising works really well enough. I could just figure out which half. This is actually the place where you don't have to guess anymore. No, I mean if I'm selling bowling shoes, then I should probably sell it to people who go to bowling alleys.

Exactly.

If I'm selling golf clubs, I should probably look at people who go to golf courses and driving ranges.

Absolutely. Or if you're trying to sell into a new retailer and you just got a traffic report that said, by the way, I know we were driving traffic to Walmart, but there's a high propensity for this audience to be shopping at Target as well. And I want to get into Target now. I have data that says we were successful with these people and they go to your store too.

Interesting. So if I was meeting with the buyer, I could literally take this data in and say, hey, Mr. Buyer, look at this. Our consumer, we drive traffic and our consumers is literally in your store and we can prove it to you. Yeah, that's interesting. That's an interesting.

There's a lot of in the data. There's a lot of. There's a lot of cross reporting that happened in those reports that show you here are other locations that they go to. And sometimes they're just one off things like they seem to go to Citibank a lot or a video store or whatever the case may be. But so that can be leveraged for other digital campaigns to say, hey, maybe here's a different type of targeting metric we haven't been using that could be easy wins that you would never thought of or could be showing data like that that says, huh, here's another retailer they visit quite often as well. So take it to your meeting and show I was successful there. And it seems like these people go to your store as well.

Well, folks, I think that covers everything on targeting. If you want to learn more about how to do this, you're always welcome to get in touch with us. You can get in touch with us at jekyllhydelabs.com or cpg insiders.com and you can talk to myself. You can talk to Justin. There's other people here. And as I always tell people, don't feel that you have to call here and commit to spend money because you just have a marketing question. We love entrepreneurs. We love this industry. We're happy to talk to people. Thank you, Justin. Great job today.

Thank you, sir.

See you on the next episode of CPG Insiders. If you're looking to greatly increase sales on your CPG product, don't hesitate to contact us at Jekyll and Hyde Advertising and marketing. By the way, the only advertising agency with a guaranteed result. Just go to jekyllheidagency.com or feel free to give us a call at 800542.