Study: In-app ads spur in-store customer spending

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Study: In-app ads spur in-store customer spending

By Deena M. Amato-McCoy - 05/15/2018
Digital ad exposure, especially those found in retailer apps, is successfully driving store visits.

In-app ads were much more effective than Web ads in driving uplift last year, a key performance metric that helps advertisers understand the impact of ad exposure has on driving store visits. Specifically, in-app ads generated between 19% and 49% in sales uplift in 2017, compared to the 10% to 33% lift driven by web ads, according to “Trends and Benchmarks for Marketers Leveraging Location Data,” a report from location intelligence company Cuebiq.

In-app ads were clearly the most effective channel for driving in-store visits, compared to those customers who were not exposed. While web ads were not as effective, these campaigns generated additional lift when paired with in-app promotions, the study revealed.

When looking at where these ads made the biggest impact, general retail showed the highest median cost per incremental visit (CPIV) of $54.51, followed by home appliances at $52.29, and automotive at $36.64. In contrast, convenience stores ($1.81), finance ($4.48), and electronics ($8.70) all had median CPIVs below $10.

Overall, retail (which includes big-box, discount stores, pet stores, and sporting goods, among others) struggles to increase its footfall traffic from advertising, along with quick service restaurants and automotive (under 40%). Despite these challenges, the electronics category had the greatest lift, seeing gains between 40% and 94%. Yet, telco and financial services are booming through digital advertising (with traffic improvements ranging between 30% and 90%).

“Our analysis of hundreds of campaigns that ran in 2017 provides granular insight into what is really working for driving retail traffic and what the actual cost and ROI for marketers is,” said Antonio Tomarchio, CEO of Cuebiq. “This analysis is helping brands better understand and plan campaigns, while giving an unparalleled view into how they stack up against category averages and their competitors.”