Today’s marketers understand the power of personal data. This data – which gives insights into purchasing behavior, for example – helps marketers craft personalized messages that better target the right demographics at the right time. Better targeting can, of course, lead to more revenue.
Waze, the traffic navigation app, is among those leading the personalization revolution.
During a session at &THEN, DMA’s annual marketing event in Las Vegas, Dan Brough, head of agency business development at Waze, will examine the possibilities presented by data sharing. The session is titled “Learning the Waze to Capitalize on Driver Data.”
About 100 million motorists around the world use Waze to “outsmart” traffic and cut back on commuting times. To capitalize on the influx of consumer-generated data it collects, Waze created the Connected Citizens Program, a two-way data exchange between Waze and municipalities to enable real-time updates of road conditions.
Google-owned Waze says its technology provides “a unique opportunity” for brands to engage with on-the-road consumers, targeting them at the right place, at the right time and in the right context. The company makes money from in-app advertising.
In 2017, AdExchanger reported that branded pins, sold at $2 CPMs, embed an advertiser’s logo on the Waze map to show the nearest location. “When users tap the pin, Waze navigates them to the store and often offers a coupon at the destination,” AdExchanger says.
Brough told AdExchanger that Waze has been able to measure an “incremental lift” in navigation to stores that are pinned on its maps.
At $25 to $30 CPMs, brands can take over the Waze map screen when a car is stopped for more than three seconds, according to AdExchanger.
“You get the ad, take your foot off the brake, start idling and it disappears,” Brough said. “There’s no texting or tapping.”
Also, Waze pulls in third-party data to make ads more personalized. The Washington Wizards and Washington Capitals, for example, tapped Waze to offer drivers in the Washington, D.C., area a 20 percent discount on game-day tickets, AdExchanger reported.
“If it’s snowing in Chicago, Michelin can promote snow tires,” Brough told AdExchanger. “Dunkin’ Donuts can show iced coffee when it’s over 80 degrees and hot chocolate when it’s under 50 degrees.”
Collection of personal data by Waze and other companies appears to be facing a backlash among consumers, though.
Earlier this year, professional services firm Deloitte released the results of a 2017 survey indicating a rise in negative attitudes about sharing of personal data.
Overall, nearly three-fourths of U.S. consumers expressed concern about sharing personal data online. Deloitte says that finding was consistent with surveys performed in previous years.
However, the 2017 survey brought a new wrinkle: 27 percent of the U.S. consumers who were questioned were willing to share personal data in exchange for personalized advertising, down from 37 percent in 2016.
“The reason for the sudden change in U.S. consumers’ attitudes is simple: They overwhelmingly lack confidence in companies’ ability to protect their data,” Deloitte says.
In the survey, 69 percent of consumers believed that companies weren’t doing enough to protect their data, and 93 percent believed they should be able to delete their online data when they want to.
The lack of consumer confidence regarding personal data threatens targeted advertising, which represents a growing opportunity for marketers, Deloitte says.
“The success of targeted advertising depends heavily on gaining insights into customers’ demographics and viewing behaviors, then augmenting this customer information with social media data,” according to Deloitte. “However, if consumers are unwilling to share their data, none of this is possible.”
This article is brought to you by &THEN, DMA’s annual event. Click here to join the leaders of the marketing community and advance your data and marketing mastery in Las Vegas, October 7-9.