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Location-Based Mobile Advertising: Q4 Highlights

Q4 2013


Location-Based Advertising

Boosts Performance Location-based advertising provided a 4% lift in CTR on average compared to campaigns that didn’t leverage location. The Automotive category saw the greatest boost, with a 43% lift in CTR from location-based targeting. Quick Service Restaurants and Travel & Transportation rounded out the top 3.

x

4%

43% 10%

8%

Source: PayPal Media Network, Q4 2013

Quarterly Report Q4 2013

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Proximity Matters Mobile users who were located within 1-10 miles of an advertised location were most likely to engage with an ad. 0.94% 0.90%

0.89% 0.86%

0.84%

0.84% 0.83% 0.84%

0.82%

0.84%

0.82% 0.79% 0.75%

0-1

1-2

2-3

3-4

4-5

5-6

6-7

7-8

8-9

9-10

10-15

15-20

20+

miles

Source: PayPal Media Network, Q4 2013

Insight

Proximity is key in the Quick Service Restaurants category, which had its best performance in the 1-3 mile distance band.

Quarterly Report Q4 2013

2


Top 10 Geo-Fenced Cities New York was the most targeted city on our network, with more than twice as many geo-fenced impressions as Houston, the second most targeted city on our network.

Chicago

San Francisco

New York City

Philadelphia

Washington D.C.

Los Angeles

San Antonio

Dallas Orlando

Houston

Source: PayPal Media Network, Q4 2013

Quarterly Report Q4 2013

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Mobile Advertising Drives

Lower-Funnel Actions Geo-targeted campaigns showed a strong effect on actions associated with purchase intent, with almost two-thirds (63%) of landing page clicks comprised of lower-funnel actions – Click to Map, Click to Shop, Click to Call, Click to Coupon or Click to View Product.

Other 16%

Click for coupon (2%)

Play video

Click to map 24%

9%

15%

10%

Click to shop

Click to view product 12%

12%

Click to call

Learn more

Source: PayPal Media Network, Q4 2013

Quarterly Report Q4 2013

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Who is Leveraging Geo-Targeting? 1. Big Box Retailers 2. Consumer Packaged Goods 3. Specialty Retailers 4. Apparel Retailers 5. Financial Services, Products & Insurance 6. Cable, Phone & Internet Services 7. Family Style Restaurants 8. Automotive Sales & Services 9. Travel & Transportation 10. Education

Top 10 Verticals

Ranked by Number of Campaigns Other Department Stores

1% 2% Computers & Internet 3% Arts & Entertainment

Automotive Sales & Services

18%

20%

3%

Education Travel & Transportation

Big Box Retailers

3% 3%

Family Style Restaurants

5%

18%

6% Cable, Phone & Internet Services

7% 8%

Financial Services, Products & Insurance

Consumer Packaged Goods

9% Specialty Retailers

Apparel Retailers

Source: PayPal Media Network, Q4 2013

Retail Dominates Q4

Retailers ran 39% of geo-fenced campaigns on our network in Q4, underscoring the importance of location-based targeting for driving consumers into stores.

Quarterly Report Q4 2013

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Case Study: Auto Save Closed Loop Offer 1-800-Flowers is the world’s leading online florist and gift shop, in business for over 25 years.

Objective

From: PayPal To: veritae@gmail.com Subject: Hello [FIRSTNAME], you now have $15 to spend at 1-800-Flowers.com.

Looking to acquire only new customers and take advantage of the scale a large data marketing partner could provide them, 1-800-Flowers sought an effective customer acquisition program.

Here’s $15 to use online at 1-800-Flowers.com

15

$

Solution

1-800-Flowers.com

Shop Now

Redeemable Online Expires: 2/22/14

The 1-800-Flowers marketing team found a data partner in PayPal Media Network and was able to use our extensive data science expertise to build a list of 3 million new customer prospects. The target list was created by applying PayPal’s proprietary “lookalike” modeling to existing 1-800-Flowers customers. This data science model takes an existing list of customers known to shop with the brand and finds other PayPal customers who demonstrate similar shopping traits and propensity to make the same kind of purchases. The model uses proprietary knowledge of PayPal’s own customers and hundreds of purchaseinfluencing traits.

Hello [FIRSTLAST], Here's $15 to use on your next online purchase at 1-800-Flowers.com. Simply shop online at www.1800flowers.com before February 22, 2014, and when you pay with PayPal at checkout your offer will be automatically applied to your purchase. Terms apply. You have been specially selected for this promotion and this offer is exclusive to your PayPal account. Redeem by 2/22/2014

Accept Payments

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Help

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Fees

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Security

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PayPal App

Merchant Terms Unless otherwise stated or required by law, the following terms apply to this promotional offer: T he Discount is available on qualifying purchases of $15.00 or more in Merchandise Value. Merchandise Value is defined as gross sales price less taxes, service, relay, shipping and handling charges. Promotional Value means the $15.00 discount provided by Merchant through use of a promotional code. Promotional Value cannot be combined or used with any other discount or promotion offered by Merchant. Promotional Value cannot be used for taxes, tips, prior balances, shipping or handling, as applicable. Neither PayPal nor Merchant is responsible for lost or stolen promotional codes. Duplicate use, sale or trade of a promotional code is prohibited. Offer not valid at 1800flowers.com retail company stores or franchise stores. For questions about how to order from 1800flowers.com, call 1800flowers.com customer service at 1-800-356-9377. Offer is valid through 11:59pm EST on February 22, 2014 and can be redeemed at 1800flowers.com desktop site, mobile site, iPhone app and android app. Void where prohibited. © 2013 1-800-FLOWERS.COM, INC.

“PayPal Media Network has demonstrated the ability to target and engage a relevant audience by leveraging the value of PayPal data to drive new customer acquisition for us. Furthermore, these offers close the loop by providing end to end measurement of our campaigns, tracking from an initial email or ad impression through to the transaction itself.” PayPal Terms R eceive a discount on your next purchase when you use your PayPal account and spend the minimum purchase amount at participating stores and websites (“Offer”). Offer must be saved to your PayPal account before you can receive the discount. Offer applies to post-sales tax amounts. Offer valid through 11:59 PM EST on the expiration date.

O ffer cannot be applied to the purchase of gift certificates or gift cards. Other exclusions may apply. Merchant’s refund policy applies. For partial refunds, you will receive the refund amount minus the Offer value. Offer valid in the continental U.S. and cannot be combined with any other coupon, offer, discount or Promotion code and may not be redeemed for cash. Void where prohibited.

This email was sent to veritae@gmail.com, because your email preferences are set to receive “News and Promotions”. Click here to Unsubscribe.

P lease do not reply to this email. We are unable to respond to inquiries sent to this address. For immediate answers to your questions, visit our Help Center by clicking “Help” located on any PayPal page or email. Copyright © 2013 PayPal, Inc. All rights reserved. PayPal is located at 2211 N. First St, San Jose, CA 95131

A $15 Auto Save Closed Loop Offer was placed in 3 million customer PayPal accounts to be redeemed online using PayPal. An email notification was sent to customers notifying them of the offer, along with reminders as the campaign progressed.

Amit Shah, VP Online, Social & Mobile, 1-800-Flowers

Results The results of the offer were outstanding:

240% ROI*

* Autosave campaign Return On Investment

Quarterly Report Q4 2013

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PayPal Media Network Reach Facts 82.5 million people shopped online for personal care items in the past 30 days. 17 million people shopped for movie tickets online in the past 30 days. 21.2 million people bought groceries online in the past month. 76.8 million bought breakfast at a quick service restaurant 26 million booked a hotel for vacation 7.2 million shopped for a new car

PayPal Media Network Fun Facts 170,003 people on our network are expecting their first child and also own a horse or pony. 69,605 people on our network visit Blockbuster’s website from their smartphones and also went to Wendy’s this week. 483,000 people on our network like to cross country ski and went to a horror movie in the past 30 days. 2.4 million people on our network own a home and drank an espresso at home in the last 7 days. 483,000 people on our network have 5 or more kids and applied for a small business loan in the past 30 days.

Quarterly Report Q4 2013

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Location-Based Mobile Advertising: Q4 2013 Highlights