Macy’s: They went to JC Penny

Urber Media published some interesting cross shopping affinity analysis.  It showed that Macy’s customers are twice as likely to visit a JC Penney location than Kohl’s.  Why is this important?

First, it shows that mobile advertising agencies are getting smarter about how they use their data.  Data is the real currency of mobile marketing.  Increasing CTR and ROI are very important and drive business.  But collecting data that the client can use for a cross-platform online/offline campaign is almost as valuable as a sale.

A campaign can be set up where Macy’s geofences all their locations (lat-long).  Captures the ID of all smartphones in store.  Places ads in apps.  Then places IDs of users that clicked on the app in a retargeting folder.  This retargeting folder is key as a separate campaign can be run to the captured IDs only.  These users have already expressed an interested in the offer and are at least 2x more likely to act on a purchase then a user that has not clicked on the banner.

But with the data like the type that Urber Media provides, Macy’s can now run a campaign targeting all JC Penney locations and place Macy’s ads in mobile apps on smartphones in a JC Penney store.  Then collect all the IDs of smartphone users that clicked on the ad and place them in a separate retargeting folder.

Why JC Penny?  Because in a Urber Media study that compared other retailers JC Penny was the most likely retailer that Macy’s customers would shop.  In comparison, Macy’s customers were twice as likely to be at a JC Penny then a Kohl’s.

The ability to target smartphone users in a set location and drill down to demographic is important but we should not overlook that the data collected can be used for retargeting and making offline advertising more efficient and effective.

Retargeting is the question

When Copley Advertising sits down with a client to discuss creating a mobile marketing plan some familiar questions come up.

  • How can you target a location?
  • How can you target by demographic and behavior?
  • Tracking?

The question that very rarely comes up is retargeting.  Retargeting is the heart of a mobile campaign.  This is how it works.  A code is placed on the client’s landing page and conversion page.  A “folder” is created that stores the captured IDs from the landing page and another folder for the captured IDs from the conversion page.  By retargeting the IDs that reached the landing page we have found CTR to be 5X industry standard.

As the main ad group delivers impressions Copley Advertising uses extensive retargeting tools such as A/B testing, CTR of the geo-locations and behavior overlays, dayparting, SSP efficiency, win percentage and others.

Once the campaign is a few weeks in and becomes hyper-targeted Copley Advertising creates a separate ad group. We add all the IDs that reached the landing page to a white list.  Then we add all the IDs from the conversion page to a black list.  Why?  At this point we are not interested in users that completed the target action, we are interested in the users who clicked on the ad but did not complete the target action.  Copley Advertising will use that group deeper in the campaign.

We turn on the retargeting campaign as the main campaign is still adding IDs to the retargeting folders.  The average CTR for a mobile campaign .2.  The CTR for retargeting IDs can jump to .7 and higher.

Having a DSP platform allows us to use all the benefits of programmatic bidding. But it also allows Copley Advertising to use our own A/B testing and retargeting to ensure that your campaign is successful.

And yes….we can target that.