The AOL Networks Blog

Cross Platform Optimization Insight Series Blog #1

12/18/12

Cross Platform Optimization Insight Series Blog #1

In a recent conversation with a Fortune 100 marketer, I asked our client if we could extend their digital campaign to smartphones. The marketer frowned and said – "I'd love to, but I don't handle mobile. Go talk to our mobile guy – he allocates the budgets independent of us." I found this somewhat concerning; it's like a hedge fund manager being restricted from investing in Asia. It just doesn’t make sense.

Unfortunately, this is a common response, ad dollars are allocated in silos (e.g. desktop, tablet, smartphone, TV, print, radio) and often managed by different people in different agencies. This results in no holistic data sharing or holistic optimization.

To be fair, this siloed approach made sense in the early days of mobile when the time spent in mobile was minimal compared to other forms of media. However given over 23% of digital time spent is within tablets and smartphones, it’s time to make use of holistic optimization capabilities. Based on our passion for optimization, we are truly excited to officially introduce the “Cross Platform Optimization Insights Series” which is our effort to help inspire our clients and media agencies.

Going back to my financial analogy, I invite you to consider the media planning process through the lens of a hedge fund manager and use technology to allocate funds in real-time across all potential digital platforms. Fundamentally, we believe this is the future of media buying and we want to do our part to help make it better.

For this first entry, let’s look at customer lifetime value, analyzed by device. For years, marketers have considered the inventory source of an acquisition to understand the value of the conversion. However, the source was typically limited to the specific publisher (i.e. Yahoo) or vendor (i.e. Tribal Fusion Ad Network).

Today, we are starting to see customers break out the acquisition data by the device (iPhone 4, iPad, desktop, etc.) and they are seeing drastic results. Recently, a large high-end retailer got 4X the customer lifetime value on Advertising.com tablet conversions compared to typical desktop/laptop conversions. 4X the lifetime value – that's a big deal! Instead of paying $10 per conversion, they can now pay $40 per conversion and obtain the same ROI – drastically growing their ability to win impressions and drive more conversions. To get started in this analysis, we’d suggest assigning different tags to be targeted to different devices and chart the lifetime value of those separate 'device buckets'.

Check back in the upcoming weeks as we'll showcase cross platform insights from both our own data as well as thought proving entries from external experts we respect…all aimed at moving the industry towards smarter cross platform decision making.

To reach out to us about being a guest blogger or to let us know what you think about our blog, please email  Mobile@advertising.com.

If you would like to subscribe to the Cross Platform Optimization Insight Series, click here.

Chad Gallagher
Cross Platform and Mobile, Advertising.com
Twitter: @ChadGallagher

Tags: Chad Gallagher, Cross Platform, Mobile, Optimization, Smartphone, Tablet