• by Maria Perez , Op-Ed Contributor, July 1, 2015

There is no ignoring the fact that mobile is growing. Google searches on mobile devices have officially surpassed desktop, as the search engine giant confirmed last month. With higher average daily usage numbers than television and an increasing penetration rate, PwC expects mobile ad dollars to overtake desktop by 2018.

Media usage is unquestionably shifting to mobile, but brands are still lagging behind. According to Mary Meeker’s Internet Trends Report, across all media, mobile sees the most under-indexed ad spending in relation to the amount of time Americans spend on this channel.

Tracking results across channels in a cookieless platform has been a challenge. The industry has yet to figure out a way to measure the success of mobile ad campaigns and provide an alternative to accurately attribute conversion credit to mobile. The lack of a standard solution to monetize mobile efforts by gauging ROI is the reason why brands are shying away from investing in mobile.

While last-click attribution models are quickly becoming obsolete, an increasingly fragmented media usage is urging media players to develop a cross-platform approach to track the customer’s journey to purchase. Multichannel models can solve attribution to some extent, but the industry still lacks a scalable device agnostic solution to measure how upper channel mobile touch points assist conversions across the sales funnel.

More specifically, the industry is still struggling to track post-click engagement within in-app and mobile web environments. Referral parameters to attribute in-app conversions to mobile web events are only available for Android; iOS is still unable to credit in-app conversions to a source referred from a mobile browser.

Google’s solution for mobile attribution, which gives credit to any event that occurs within 30 days after a mobile search or display ad is viewed, also leaves room for improvement.

Leveraging data and technology to bridge online and offline conversions

Ad tech solution providers are in a race to develop effective measurement tools and accurate cross-channel matching algorithms. By combining technology and first- and third-part data, such as Wi-Fi and IP addresses, emails, location and other CRM data, platforms can currently achieve a level of accuracy that ranges from 50% to 90%, according to eMarketer.

Geo-fencing solutions can now be narrowed down to the users’ latitudinal and longitudinal coordinates. This allows brands to hyper-locally target consumers within a space of 1.5 squared meters, achieving high levels of accuracy and granularity from the device’s GPS information.

In combination with beacon technology, geo-fencing tracking capabilities provide an extra layer of real-time mobile location analytics that can bridge the attribution gap between online and offline conversions. Beacons can collect customer data, such as purchasing history, in-store visits, foot traffic, mobile payments, coupons and more.

This data provides brands with a potential solution to overcome the lack cookies in mobile by tracking post-click spatial behavior and engagement, helping closing the loop between the online and offline world.

Conclusion

According to Meeker’s report, mobile devices are responsible for the dramatic rise in the average time spent on digital media among U.S. adults. This affords brands with the opportunity to reach consumers real-time, increase engagement rates through advanced geo-targeting, and ultimately achieve higher conversions and ROI.

Beacons are a promising solution to address the lack of a standard ad attribution model, which is making brands reluctant to allocate more ad dollars on mobile. As technology advances and data becomes more accurate, beacons can potentially provide a scalable cross-channel model to measure mobile performance and help close the gap between mobile touch points and sales.