When it comes to mobile advertising, the CTR is quickly receding into the background. Good riddance.
JiWire is the latest mobile ad network or provider to introduce an offline ROI metric/methodology. This morning the company announced its “Location Conversion Index.” The new ROI metric basically measures whether a mobile ad exposure has provided a lift in store visits.
Here’s how JiWire describes the methodology:
JiWire establishes a benchmark of how likely it is that an audience, such as young, professional urban women, will visit a store based on the historical store visit rate. Then, JiWire measures the increase in visits compared to the historical benchmark for those consumers who have received the ad. To address the natural fluctuation of in-store traffic, such as the holiday season, JiWire compares people who saw the ad to a control group of consumers over the same period of time. Through JiWire’s advanced audience matching capabilities and large-scale data, the control group is made up of essentially an identical “twin” to each person exposed to the campaign. This ensures the most accurate comparison versus a general population of consumers who may never visit a retailer’s.
Yesterday Google introduced “Estimated Total Conversions,” which seek to measure cross-device and offline conversions. Placed not long ago introduced “Placed Attribution,” which estimates campaign impact store visits based on an offline panel and is being used by xAd, Verve and Millennial. There’s also uSamp and others measuring offline ROI. Facebook is very much involved in this effort as well.
PlaceIQ was the first company to introduce an offline “place visit rate” metric. We’ll hear more about that at Place 2013 next week.
Smartphones have now made it possible to measure the impact of mobile ads on offline store visits. That’s what we’re seeing with these announcements. Soon networks that don’t offer comparable offline ROI metrics will find themselves under tremendous pressure from advertisers and agencies, especially at the national level.