Digital predictive advertising company AdTheorent has recently launched a new Cost Per Incremental Visit (CPIV) pricing model for adverts.
The company says that the new model came from a desire to optimize and improve incremental visits to physical store and service locations, i.e. visits which occurred following a campaign.
As part of the new model, AdTheorent advertisers are only paying for ads that actually result in physical visits. These are measured by Placed Attribution, the firm that specializes in ad-to-store attribution.
Josh Walsh, AdTheorent’s President of Media, explains:
“AdTheorent’s machine learning platform combines billions of data attributes into custom models used to identify and engage optimal audiences based on a given advertiser’s desired goals. Our high-performing predictive models afford us the luxury of developing a pricing model that guarantees ROI for AdTheorent advertisers – whether that be a lift in in-store, movie theater or dealership visits or some other real-world business outcome.”
CPIV pricing is designed to reflect truly incremental location visits and those representative of a lift following exposure to an ad campaign. AdTheorent says that it does not count visits which would have occurred regardless of the ad campaign.
It further criticized Cost Per Visit (CPV) pricing models for obscuring the real value of an ad click since not all store visits are directly related to ad clicks and vice versa. Therefore, CPV may overstate an ad campaign’s ROI.
Given the upcoming holiday season, AdTheorent hopes that its new CPIV model will attract advertisers to design custom models and engage audiences for location store visits. A whopping 81% of consumers plan on visiting stores this holiday seasons and sales are expected to increase 3.5% to 4.4% in 2017.
“Campaign measurement has moved far beyond the early days of optimizing to clicks, and at this stage, marketers have reached a point where they demand online to offline attribution to demonstrate campaign success,” adds David Shim, CEO of Placed. “We have partnered with AdTheorent successfully for years to measure their high-performing campaigns with Placed Attribution, and we look forward to continuing this across an innovative set of advertiser-focused solutions.”