How Contextual Data Increases Ad Inventory Value

Apr 11, 2014   

Posted by Schneidermike

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Mobile advertising is about using the power of always-connected mobile devices to create stronger connections between advertisers and their audiences. Mobile devices captivate consumers because they augment and enhance their lives, prompting them to openly share their location and social data. Advertisers can use this individual-level audience intelligence data to bolster marketing strategies and messages, but they need to know where to start.

Accurate location integrated with layers of venue and demographic context is the holy grail for advertisers. The aggregation of data from a mobile device allows advertisers to gather context on their audiences, enabling better targeting for brands, more relevant content for consumers, and higher value ad inventory for publishers. True context data delivers higher profitability for the same ad impressions. Advertisers can improve user engagement by reaching their audiences with relevant, higher value content where and when they are ready to make a buying decision.

1. Build Audience Personas

Advertisers have the ability to intelligently build contextual personas of their audience based on their real-world activities. Skyhook’s solution builds these consumer personas by combining census demographic data--like income level, education, gender, age and ethnicity--with behavioral patterns based on where users go and when.

These personas provide powerful insights into affinities and intents, enabling advertisers to enrich their inventories with contextual data on audience lifestyles. For example, a user who visits beauty supply shops and high end clothing stores and has an income of over 200K is classified as a Luxury Shopper. The publisher who builds that profile can command increased CPMs for ad impressions to that highly desirable segment, and advertisers can target those users with relevant messages to achieve increased conversion rates.


2. Build Venue Profiles

The more data advertisers have about a location, the more they know about who lives, works and visits there. Skyhook aggregates anonymous consumer personas into layers of context assigned to areas and venues. Over time, as Skyhook processes more location requests, it refines its knowledge of a venue.

Venues take on the attributes of users who live, work, shop, eat and drink at that address. These venue profiles offer advertisers an opportunity to charge a premium for audiences based on their precise, venue-level location and the associated interests and activities.

3. Anonymize Data to Protect Consumer Privacy

Tracking consumer behavior is always a sensitive topic. Skyhook builds anonymized personas without ever using personally identifiable information (PII). This method empowers advertisers to access powerful contextual data about segments of their audience without violating individual privacy.


By cross referencing consumer personas with venue profiles, advertisers can have contextual data on where users are and when. This data can be applied to media buying algorithms to increase the value of ad inventories. This level of audience and venue knowledge enables advertisers to deliver more valuable advertising at a higher CPM and with greater conversions. personas_streetscene

 increase online ad profitability with context

Topics: Advertising