Geo-Targeted Mobile Ads

Company: Dunzo

Date: July 2019 – December 2019

Objective

In 2019, Dunzo, India’s premier hyperlocal delivery startup backed by Google, aimed to expand its market share and customer base in Pune. Recognizing the city’s bustling urban lifestyle and the challenges faced by its residents during peak hours, Dunzo implemented a Geo-Targeted Mobile Advertising Campaign during peak commuting times. This campaign focused on reaching busy professionals and students who could benefit from Dunzo’s on-demand delivery services, especially when they needed them the most.

Objectives:

1. Increase Brand Awareness: Enhance Dunzo’s visibility among Pune’s urban population, particularly in high-traffic areas.
2. Boost App Downloads: Achieve a 30% increase in app downloads over a three-month period.
3. Drive First-Time Orders: Encourage new users to place their first order, aiming for a 25% rise in first-time transactions.
4. Improve Market Share: Capture an additional 15% of the hyperlocal delivery market in Pune.
5. Enhance User Engagement: Increase in-app engagement by promoting Dunzo’s unique services.

Strategy:

 1. Geo-Fencing High-Traffic Areas

• Identification of Key Locations: Mapped out Pune’s busiest areas, including tech parks, universities, commercial hubs, and transit points.
• Implementation of Geo-Fences: Set up virtual perimeters around these locations to target users within these zones.

2. Peak Hour Targeting

• Time Slots:
• Morning: 7:00 AM – 10:00 AM
• Evening: 5:00 PM – 9:00 PM
• Rationale: Target users during commute times when the need for quick services is higher.

3. Personalized Mobile Ad Creatives

• Dynamic Creative Optimization (DCO): Utilized to tailor ads based on real-time data such as location, time, and user behavior.
• Messaging: Focused on common pain points, e.g., “Forgot your lunch? We’ll bring it to you!” or “Need groceries? We’ve got you covered!”

4. Programmatic Advertising Platforms

• Demand-Side Platforms (DSPs): Engaged platforms like Google Display Network, InMobi, and The Trade Desk for efficient ad bidding.
• Real-Time Bidding (RTB): Leveraged to secure prime ad placements on popular mobile apps and websites frequented by the target audience.

5. Data Analytics and Optimization

• Tracking and Measurement: Implemented advanced analytics tools for real-time monitoring.
• A/B Testing: Conducted to determine the most effective ad formats and messages.
• Budget Allocation: Adjusted dynamically based on performance metrics.

Target Audience:

• Demographics

  • • Age: 22 – 45 years
    • Gender: Male and Female
    • Location: Urban areas within Pune
    • Occupation: Working professionals, college students, 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:

• Geo-Fencing Technology: To define and target specific geographic zones.
• Mobile Advertising Platforms: InMobi, AdColony, Smaato for mobile ad distribution.
• Analytics and Tracking: Google Analytics, Adjust, and Appsflyer for performance measurement.
• Creative Tools: Adobe Creative Suite for designing engaging ad creatives.
• Programmatic Platforms: Google Display Network, The Trade Desk for automated ad buying.
• Data Management Platform (DMP): Oracle BlueKai to manage and analyze user data.

Locations Targeted:

• Hinjewadi: Major hub for IT professionals.
• Magarpatta City: Integrated township with numerous businesses.
• Koregaon Park: Upscale residential area with cafes and boutiques.
• Viman Nagar: Residential and commercial locality near the airport.
• Pune University: Hub for students.
• Shivajinagar: Central area with educational institutions and offices.
• Pune Railway Station: High footfall area for commuters.
• FC Road (Fergusson College Road): Popular among students and young professionals.

Budget:

• Total Campaign Budget: INR 20,00,000 (~USD 28,000)

Budget Breakdown:

• Ad Spend: INR 14,00,000
  • Mobile Ads: INR 10,00,000
  • In-App Ads: INR 2,00,000
  • Social Media Boosts: INR 2,00,000
• Creative Development: INR 2,50,000
  • Ad Design and Copywriting
  • Ad Design and Copywriting
• Technology and Tools: INR 2,00,000
  • DSP and DMP Costs
  • Analytics and Tracking Tools
• Operational Costs: INR 1,50,000
  • Campaign Management
  • Optimization Efforts

Execution:

Phase 1: Preparation

• Market Research: Analysed user behaviour patterns and peak activity times.
• Creative Development: Designed multiple ad variants for testing.
• Set Up Geo-Fences: Around selected high-traffic areas.

Phase 2: Launch

• Ad Deployment: Initiated ads during peak hours in targeted locations.
• Real-Time Bidding: Used RTB to place ads on premium ad slots.

Phase 3: Monitoring and Optimization

• Performance Tracking: Monitored KPIs daily.
• A/B Testing: Adjusted ad creatives based on engagement metrics.
• Budget Reallocation: Shifted funds towards high-performing ads and locations.

Ad Creatives

• Formats:
  • Static Banners: For quick messaging.
  • Animated Banners: To capture attention.
  • Interstitial Ads: Full-screen ads for maximum impact.

• Messaging Examples:
  • “Left something at home? Dunzo it to your office!”
  • “Craving a snack? We’ll deliver it in a jiffy!”
  • “No time for errands? Let Dunzo handle it!”

Platforms Used

• Mobile Apps: Placed ads within popular apps like news, weather, and entertainment apps.
• Mobile Websites: Targeted sites with high mobile traffic.
• Social Media: Boosted posts during peak hours on platforms like Facebook and Instagram

Results:

Key Performance Indicators (KPIs)

• App Downloads:
  • Goal: 30% increase
  • Result: 35% increase, surpassing the goal by 5%.
• First-Time Orders:
  • Goal: 25% rise
  • Result: 28% increase, exceeding expectations.
• Market Share Growth:
  • Goal: 15% increase
  • Result: 18% market share growth.
• n-App Engagement:
  • Average Session Duration: Increased by 20%.
  • Repeat Usage: 15% of new users placed a second order within a week.
• Ad Engagement Metrics:
  • Click-Through Rate (CTR): Achieved an average CTR of 3%, above the industry average of 1.5%.
  • Conversion Rate: 12% of ad clicks led to app downloads.

Insights

• High-Performing Locations:
  • Hinjewadi IT Park and Magarpatta City had the highest engagement.
  • Koregaon Park showed significant traction during evening hours.
• Effective Ad Formats:
  • Animated Banners outperformed static ones by 25% in terms of CTR.
  • Interstitial Ads had a higher conversion rate but were used sparingly to avoid user annoyance.
• Peak Hours Performance:
  • Evening Peak (5 PM – 9 PM) saw 40% higher engagement than morning hours.
  • Users were more likely to place orders for food and groceries during the evening.

Challenges and Solutions:

Challenge 1: Ad Fatigue and Banner Blindness

• Issue: Users began ignoring ads due to overexposure.

• Solution:
  • Creative Rotation: Updated ad creatives every week.
  • Frequency Capping: Limited ad impressions to 3 per user per day.
  • Diverse Ad Formats: Introduced native ads and interactive formats to keep users engaged.

Challenge 2: Accurate Geo-Targeting

• Issue: Initial geo-fences were too broad, leading to ads being served outside intended areas.

• Solution:
  • Refined Geo-Fences: Adjusted perimeters based on real-time location data.
  • Partnered with Location Data Providers: Collaborated with companies like Factual for precise targeting.

Challenge 3: Measuring Offline Conversions

• Issue: Difficulty in attributing in-app actions directly to ad impressions.

• Solution:
  • Attribution Models: Implemented multi-touch attribution to assign credit accurately.
  • Unique Promo Codes: Used in ads to track conversions stemming from specific creatives.

Challenges and Solutions:

• Total Revenue Generated: INR 38,40,000 from new users acquired during the campaign.
• Cost Per Acquisition (CPA): Reduced by 18% compared to previous campaigns.
• ROI Calculation:
• Total Investment: INR 20,00,000
• Net Profit: INR 18,40,000
• ROI: 92%

Conclusion:

The Geo-Targeted Mobile Ads During Peak Hours campaign was instrumental in achieving Dunzo’s objectives in Pune for 2019. By strategically targeting busy professionals and students during their peak activity times, Dunzo significantly increased brand awareness, app downloads, and user engagement. The campaign not only met but exceeded its goals, contributing to substantial market share growth and establishing Dunzo as a go-to service for hyperlocal deliveries in Pune.