Published January 2016
In today’s marketplace a consumer's path to purchase frequently starts with an impression on one device, and move across devices to become a conversion on an entirely different device. Cadreon, the ad tech unit of IPG Mediabrands, has been partnering with an automotive manufacturer to measure this behavior in the programmatic media space.
“Our clients have a need to drive efficient leads. We were interested in this cross-device study to better understand the consumer journey and be able to target users wherever they are within that journey,” said Cadreon’s Krish Sailam, Cadreon's Senior Product Manager of Mobile.
Cadreon began using DoubleClick cross-device conversion metrics to measure the impact of mobile and other devices on each conversion. The results ended up surprising all involved.
Measuring across all devices
Automotive buyers spend a lot of time researching cars before
committing to a purchase. Mobile is an increasingly significant format
for automobile buyers, and advertisers are following suit – an eMarketer
study from May 2015 shows that 47% of U.S. auto digital ad spend will
be dedicated to mobile. Due to this, it is important to be able to target
people wherever they are in the purchase funnel.
At first we were focused on how to accurately quantify the impact of mobile, but we quickly saw that if we focus only on mobile we undermine the value of our data. We had to establish the true total cost of a conversion, regardless of channels, and then we could dive deeper and find out how each channel influenced that conversion.
DoubleClick's cross-device conversion metrics are built to work across all types of ad buys, both programmatic and reservations, and cover all screens, channels (search and display) and formats. This breadth gives advertisers a unified view of their customers and visibility to the specific effect each touchpoint has on sales.
"When we did our initial pass of the cross-device measurement data, we found some staggering results," says Sailam. The data showed that single-channel measurement had been dramatically underestimating the results of their campaigns. Cross-device conversion metrics showed:
- 15% lift in overall conversions.
- 22% increase in conversions touched by smartphones.
- 13% reduction in the cost per acquisition (eCPA).
These results quickly revealed that Cadreon's campaigns were actually performing materially better. "The
rise in smartphone numbers is huge," says Sailam. "It shows how powerful smartphones can be in
producing actions, even if those actions happen on another device."
The mobile effect
As the team dug deeper into the numbers, they explored whether they were spending the optimal amount on mobile.
To test this, they ran two models: one which maintained a fixed total budget and varied the percentage allocated to mobile, and another where the total budget was increased, with all the new spending focused on mobile.
Both scenarios increased conversions. But the Cadreon team saw that with the fixed-budget model, spending a greater percentage of the budget on mobile led to lower eCPAs, an increase in total conversions and an increase in gross impressions.
These results proved to Cadreon that by increasing mobile's budget allocation, they got better performance and greater reach for the same investment.
Today Cadreon recommends cross-device measurement and an increased focus on mobile to all its
Measuring media in separate silos is no longer valid and it gravely misrepresents our performance.
Measuring the full path to purchase gives Cadreon's clients better reach and more performance for the same amount of money. The company finds that cross-device measurement also opens up new conversations with clients about the best way to reach their audience.
The numbers don't lie, says Sailam. "At the end of the day, cross device conversion metrics let our organization deliver media the way the consumer expects it."