Deals & Mobile:

The Race for Hyper-localDaily Deal Summit

Josh EngroffApril 18, 2012

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Over the next decade, three trends will interact to reshape our lives…

- John Doerr

MoMobile

MoMobile

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the future of mobile commerce is huge

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Source: IDC; Business Insider

Smartphones already outsell PCs, and will dwarf them in coming years

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Source: Business Insider

In 2011, PayPal processed $4B in mobile payments

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Source: Business Insider

Although just a year old, Square processes $11M per day

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Source: BIA/Kelsey

Local advertising will account for 70% of all mobile advertising in 2016

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what do we mean when we say hyper-local ?

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country…

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Image from our deck

dma…

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city…

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zip…

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hyper-local.

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daily deals are particularly well suited to hyper-local on mobile

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Q: how does a daily deal marketer break free from the confines of a

specific app?

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A: by targeting at scale across all mobile inventory types

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For example….

• Goal: increase purchases of time-sensitive offers by putting them in the hands of people within 0.25 miles (or less) of the merchant

• Launched in NYC, Chicago, Phoenix

• Result: ESM developed a method to programmatically ingest 50,000 offers per day, target them to the right users, track conversions, and optimize ongoing purchases using a new metric called

DMAP: “distance from merchant at time of purchase”

Large Daily Deal

Client

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to succeed at hyper-local targeting on mobile,

you must have….

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• Latitude / longitude hard to obtain

• Therefore, use a partner who can infer hyper-location using other seed data…

• …and has access to at least 100 Billion total mobile impressions per month

Scale

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• Thousands of merchants means tens of thousands of deals every day

• Use common frameworks to export this data to your partner, and make sure they have the capacity to ingest and process in real-time

• And don’t forget to set up conversion tracking!

Data

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• If buying on the mobile exchanges, your partner must be able to submit bids on your behalf in under 50 ms

• Scalable

• Flexible

• Secure

Rock-SolidTechnology

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Supply Side

Partners

Bidders Geo-aware Datastore

Can increase number of silos

to meet demand

Can increase number of bidders to meet demand

Bidders Geo-aware Datastore

Bidders Geo-aware Datastore

Central Datastore

Processing

AdManager UI Reporting API

Peer1 Managed Data CenterAmazon Cloud Silos

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• Which categories of merchants do best in a given part of a city? Soho for Spas, Chinatown for restaurants, Midtown for theater? That’s easy.

• Your partner should be able to show you impressions, clicks and conversions in real-time – and tell you the optimal combination of Deal Category and DMAP by Neighborhood.

Analytics

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• Make your mobile checkout extremely easy to use

• This is true both for apps and mobile web checkouts

• #1 reason users don’t convert post-click is because of barriers in the funnel

Simplicity

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• Social on Mobile = small cohorts of users who share the same physical space for some amount of time

• Targeting offers to cohorts like this improves response rates 3x – 10x over segmentation schemes such as demographics, psychographics

• On mobile, this involves data science. If “data science” is a foreign word to your prospective partner, avoid them!

Social

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Thank You!Daily Deal Summit

Josh EngroffApril 18, 2012