xAd Introduces Cost-Per-Visit In-Store Ad Pricing Model

xAd on Thursday released a pay-for-performance revenue model for driving offline visits based on location. The company calls the pricing model Cost Per Visit (CPV).

Joshua Lowcock, EVP, head of digital in the U.S. at UM Worldwide, believes the CPV model "creates a complete mind-shift for the industry -- especially when you equate this to what Cost Per Click did for Search."

Marketers only pay for the advertisements that serve up when an in-store visit occur. The model is only available in the U.S. today.

The data is validated by Placed, a third-party location measurement firm, which also works with Connexity and eBay, and Pandora. Through validation, the CPV model aims to give marketers a better way to pinpoint a consumer's current and/or past location and deliver the correct message.

"The difference is, there are no accidental clicks when it comes to foot traffic," Lowcock said in a prepared statement. "If a brand’s focus is to drive store visits, you should be able to pay for those visits."

The CPV model charges advertisers for a physical in-store visit from a consumer who received a mobile ad impression.

Lowcock notes that the CPV model gives marketers a pricing model that aligns the strategy with investments, creating an efficient buying model, one he believe cements the idea of location in campaigns.

xAd believes the CPV model represents a major shift in accountability from the buyer to partner, bringing improved transparency and accountability to the advertising industry.

The move seems similar to Google's store visit metrics in AdWords that launched in 2014. AdWords helps guide and measure in-store purchases that come from online searches, views and clicks.

Along with the news of the new revenue model, xAd said The Home Depot, and Applebee's will pilot the program. 

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