Contextual Advertising on Local Content Platforms

Company: Dunzo

Date: August 2019 

Objective

In 2019, Dunzo, a leading hyperlocal delivery service backed by Google, sought to deepen its market penetration in Pune, a bustling metropolitan city in India. To achieve this, Dunzo launched a Contextual Advertising Campaign on local content platforms. By aligning its advertising with relevant content consumed by Pune’s residents, Dunzo aimed to increase brand awareness, drive app downloads, and boost user engagement by connecting with the audience in a more organic and meaningful way.

Objectives:

1. Enhance Brand Visibility: Increase Dunzo’s presence on popular local content platforms in Pune.
2. Increase App Downloads: Achieve a 25% increase in app downloads over a four-month period.
3. Boost User Engagement: Improve in-app activity by 20% through contextual relevance.
4. Drive First-Time Orders: Achieve a 30% rise in first-time orders from new users.
5. Strengthen Brand Association: Establish Dunzo as an integral part of Pune’s urban lifestyle.

Strategy:

 1. Identification of Relevant Local Content Platforms

• Local News Websites:
  • Pune Mirror: A popular English-language daily focused on city news and events.
  • Sakal Times: A leading Marathi and English newspaper with a strong online presence.
  • Punekar News: An online portal covering local news, events, and updates.
• Lifestyle and Entertainment Portals:
  • WhatsHot Pune: A city guide for food, events, and lifestyle.
  • LBB (Little Black Book) Pune: A platform for discovering local businesses and experiences.
  • CityShor Pune: Showcases offbeat places, events, and activities in the city.
• Event and Activity Platforms:
  • BookMyShow: India’s largest entertainment ticketing platform with localized content.
  • EventsHigh Pune: Lists local events, workshops, and activities.

2. Contextual Ad Placement

• Content Relevance: Placed ads next to articles and content related to:
  • Food and dining
  • Shopping and retail
  • Lifestyle and wellness
  • Local events and festivals
  • Urban mobility and commuting
• Native Advertising: Used ad formats that blended seamlessly with the platform’s content to enhance user experience.

3. Personalised Messaging

• Dynamic Creative Optimization (DCO): Tailored ad creatives based on the context of the content being consumed.
  • Example: Ads on food articles showcased Dunzo’s restaurant delivery services.
  • Example: Ads on event pages highlighted quick delivery of last-minute essentials.
• Language Localization: Created ads in both English and Marathi to resonate with a wider audience

4. Programmatic Buying

• Content Discovery Platforms: Utilized Taboola and Outbrain to distribute content-rich ads across selected platforms.
• Real-Time Bidding (RTB): Leveraged RTB to secure premium ad placements dynamically.

5. Data Analytics and Optimization

• A/B Testing: Tested different ad copies, images, and formats to identify the most effective combinations.
• User Engagement Tracking: Monitored how users interacted with ads and subsequent in-app behaviour.

Target Audience:

• Demographics

  • • Age: 18 – 40 years
    • Gender: Male and Female
    • Location: Urban and suburban areas of Pune
    • Occupation: Students, working professionals, young entrepreneurs.

• Psychographics

  • Lifestyle: Fast-paced, tech-savvy, values convenience and time-saving solutions.
  • Interests: Technology, food delivery, e-commerce, online shopping, urban lifestyle.
  • Behavior: Heavy smartphone users, frequently use apps for services, open to trying new digital solutions.

Tools & Technology:

• Content Discovery Platforms: Taboola, Outbrain for native ad distribution.
• Programmatic Advertising Platforms: Google Display Network, AppNexus for targeted ad placements.
• Analytics Tools: Google Analytics, Adobe Analytics for performance tracking.
• Ad Servers: DoubleClick for Publishers (DFP) to manage and serve ads efficiently.
• Creative Tools: Canva, Adobe Creative Suite for designing engaging visuals.
• Language Localization Services: Lokalise for translating and adapting ad content.

Locations Targeted:

• Central Pune: Areas with high internet penetration and content consumption.
  • Kothrud
  • Shivajinagar
  • Deccan Gymkhana
• Educational Hubs:
  • Pune University Area
  • FC Road (Fergusson College Road)
  • Viman Nagar (home to Symbiosis International University)
• IT and Business Districts:
  • Hinjewadi IT Park
  • Magarpatta City
• Residential Areas:
  • Baner
  • Wakad
  • Kalyani Nagar

Budget:

• Total Campaign Budget: INR 15,00,000 (~USD 21,000)

Budget Breakdown:

• Ad Spend: INR 10,00,000
  • Content Discovery Platforms: INR 6,00,000
  • Programmatic Display Ads: INR 4,00,000
• Creative Development: INR 2,00,000
  • Ad Design and Copywriting
  • Localization Efforts
• Technology and Tools: INR 1,50,000
  • Platform Fees
  • Analytics Tools
• Operational Costs: INR 1,50,000
  • Campaign Management
  • Optimization and A/B Testing

Execution:

Phase 1: Research and Planning

• Content Mapping: Identified popular content categories and peak usage times on selected platforms.
• Audience Segmentation: Created user segments based on interests and content consumption patterns.
• Creative Strategy: Developed multiple ad variations tailored to different content contexts.

Phase 2: Campaign Setup

• Integration with Platforms: Set up campaigns on Taboola, Outbrain, and programmatic ad exchanges.
• Ad Placement: Configured contextual targeting parameters to ensure ads appeared alongside relevant content.
• Localization: Translated and adapted ad content for Marathi-speaking audiences.

Phase 3: Launch and Monitoring

• Campaign Launch: Deployed ads across selected platforms, starting with high-traffic areas.
• Real-Time Monitoring: Used analytics tools to track impressions, clicks, conversions, and user engagement.
• Optimization: Adjusted bids, creatives, and targeting based on performance data.

Phase 4: Optimization and Scaling

• A/B Testing Results:
  • Found that ads with localised language had a 15% higher CTR.
  • Image-based ads performed better than text-only ads by 20%.
• Budget Reallocation: Increased spend on high-performing platforms and reduced it on underperforming ones.
• Creative Refresh: Updated ad creatives bi-weekly to prevent ad fatigue.

Ad Creatives and Messaging

• Food Delivery Context:
  • Ad Headline: “Craving Local Delights? Get Them Delivered Fast with Dunzo!”
  • Visuals: Mouth-watering images of popular Pune dishes like Misal Pav and Vada Pav.

• Event and Festival Context:
  • Ad Headline: “Last-Minute Festival Shopping? Dunzo Has You Covered!”
  • Visuals: Images depicting festive items and decorations.

• Lifestyle Content Context:
  • Ad Headline: “Too Busy to Run Errands? Let Dunzo Do It for You!”
  • Visuals: Depicting professionals and students using the app effortlessly.

• Localised Language Ads:
  • Marathi Ad Headline: “तुमच्या आवडत्या गोष्टींची झटपट डिलिव्हरी, फक्त Dunzo सोबत!”
  • Translation: “Quick delivery of your favourite things, only with Dunzo!”

Results:

Key Performance Indicators (KPIs)

• App Downloads:
  • Goal: 25% increase
  • Result: 32% increase, exceeding the goal by 7%.
• First-Time Orders:
  • Goal: 30% rise
  • Result: 35% increase, surpassing expectations.
• User Engagement:
  • Goal: 20% improvement
  • Result: 25% increase in average session duration.
• Ad Engagement Metrics:
  • Average CTR: 2.8%, higher than the industry average of 1.5%.
  • Conversion Rate: 10% of ad clicks led to app downloads.
  • Cost Per Click (CPC): Reduced by 12% through optimization.

Platform-Specific Insights

• High-Performing Locations:
  • WhatsHot Pune: Delivered the highest CTR at 3.5%.
  • Pune Mirror Online: Generated the most app downloads.
• Content Context Performance:
  • Food and Dining Articles: Resulted in 40% of total conversions.
  • Event Pages: Showed a spike in engagement during festival seasons like Ganesh Chaturthi and Diwali.
• Language Impact:
  • Localised Ads: Marathi ads had a 15% higher engagement among regional language readers.

Challenges and Solutions:

Challenge 1: Ad Blockers Reducing Reach

• Issue: A significant number of users were using ad blockers, limiting ad impressions.

• Solution:
  • Native Advertising: Increased focus on native ads that are less likely to be blocked.
  • Content Collaboration: Partnered with publishers to create sponsored content that bypasses ad blockers.

Challenge 2: Banner Blindness

• Issue: Users became desensitised to standard banner ads over time.

• Solution:
  • Interactive Ads: Introduced interactive elements like quizzes and polls within ads.
  • Ad Refresh Strategy: Regularly updated ad creatives to maintain freshness.

Challenge 3: Measuring Content Relevance Impact

• Issue: Difficulty in attributing the effectiveness of contextual relevance on conversions.

• Solution:
  • Controlled Experiments: Ran parallel campaigns with and without contextual targeting to measure impact.
  • Enhanced Analytics: Used UTM parameters and advanced analytics to track user journeys.

Return on Investment (ROI)

• Total Revenue Generated: INR 22,50,000 from new users acquired during the campaign.
• Cost Per Acquisition (CPA): Decreased by 15% compared to previous campaigns.
• ROI Calculation:
• Total Investment: INR 15,00,000
• Net Profit: INR 7,50,000
• ROI: 50%

Conclusion:

The Contextual Advertising Campaign on Local Content Platforms significantly contributed to Dunzo’s growth objectives in Pune for 2019. By strategically placing ads alongside relevant content and leveraging the popularity of local platforms, Dunzo effectively engaged with its target audience. The campaign not only increased app downloads and user engagement but also strengthened Dunzo’s brand association as a convenient and essential service in the daily lives of Pune’s residents.