Placed CEO David Shim says demand for offline attribution at a tipping point.


Retail makes up the largest category of internet ad spending, representing about 21 percent of total revenues, according to the most recent IAB report — or roughly $15 billion annually. That’s w

hy the development of a “cost-per-(store)-visit” ad model (CPV) is potentially so significant.


Some of that retailer ad spending is driven by pure-play e-tailers. However, most is from traditional retailers.


While traditional retailers are suffering, more than 90 percent of consumer retail spending still happens in stores: trillions offline vs. billions online. In addition, though they’re more tech-savvy than millennials, members of so-called “Gen Z” strongly prefer to shop in stores.


Internet ad revenues by industry category

Since the advent of mobile-location analytics and online-to-offline measurement, I’ve been writing about optimizing digital campaigns against offline visits and the possibility of a CPV model.


A few weeks ago, xAd was the first to formally introduce a CPV model. That was followed quickly by similar announcements from Retale and Blis. More are coming.


The firm doing validation and third-party verification of store visits in several of these cases is Placed. According to CEO David Shim, the company now has “250+ publishers, ad networks, and demand side platforms onboard with Placed Attribution.” Shim added that he believes that demand for online-to-offline/store attribution “has hit a tipping point.”



Last last month, the Media Ratings Council issued its Location Based Advertising Measurement Guidelines establishing guidelines and best practices for Location measurement, which support this kind of third-party solution. Placed is one of a number of firms that can provide location analytics and in-store visitation measurement.


Offline merchants, retailers and service businesses have wanted data on whether their digital media are actually driving real-world visits and sales, as opposed to impressions, clicks or “engagement,” for a very long time. Now it’s available — and increasingly reliable (though location accuracy is still a matter of some controversy and debate).


With CPV and similar “guaranteed visits” models (Retale), we’re likely to see a fairly radical shift in the way that major online advertisers buy, optimize and evaluate media. Stay tuned.

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