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ECOM 101

As consumers continue to move more of their media consumption and computing tasks to mobile devices,marketers have followed, devising an array of methods to extend their branding and marketing efforts to the mobile platform. These include many different types of in-appadvertising and mobile search advertising. This shift towards mobile has required both brands and the advertising and analytics companies they work with to analyze the impact of their mobile marketing in a different way from other marketing channels. The better companies understand the impacts of their mobile marketing, the more return on investment they can expect to see from their marketingcampaigns.When the only way to access a website was using a desktop computer, using aless granular approach to assess the viability of a marketing campaign mademore sense. Now, however, consumers not only can access the same websiteon different platforms, but two customers can reach the same site in very different ways. In this video, global sporting goods giant Adidas describes its experiences working with digital performance marketing agency iProspect tobetter understand the value of its mobile marketing efforts.With clients ranging from GM, Hilton Hotels, Neiman Marcus, and T-Mobile, iProspect is familiar with marketing initiatives in very different industries. The company specializes in search engine optimization, paid search, display ads,and other social and mobile marketing techniques, while placing an emphasison delivering measurable return on investment. For a business like Adidas, which relies on bricks-and-mortar outlets, mobile marketing that drivescustomers to a physical location nearby is critical. The video describes howiProspect focused on Adidass mobile store locator to determine its effectiveness as a mobile marketing tool.Determining the precise number of customers originating from mobile marketing efforts over a given period of time is difficult. To try and solve thisproblem, iProspect analyzed the effect of advertisements featuring a storelocator using Adidas internal data. They accurately estimated of the percentageof store locator clicks that resulted in in-store traffic and the value of their eventual purchases. They then incrementally increased these amounts, because potential customers who clicked on the store locator alreadydisplay a higher level of intent to make a purchase.Different types of businesses might see different returns on the same type ofadvertising campaigns. Its up to each individual business to accuratelydetermine the type of mobile advertising that best drives their business.

1. Of the mobile users who clicked on the store locator, what fraction did iProspect estimate entered a physical store?

2. What did iProspect determine to be the worth of each individual store locator click? What implications did thishave for return on investment?

3. Why did iProspect increase the average order value per visit from its initial amount? What were the amounts?