Saturday, August 1, 2015

99 Cents Only Drives Highest In-Store Conversion Rate, Costco Tops Average Order Size and Efficiency. xAd Official Launch Partner of Placed Revenue, Expanding Partnership with Placed

SEATTLE, WA, July 29, 2015 Placed, Inc., the leader in connecting ads to store visits, announces the launch of Placed Revenue. Placed Revenue attributes ad exposure to offline purchases, by delivering reporting on purchase rate and revenue. The new offering is extension of Placed Attribution, the industry standard in offline attribution utilized by over 90+ publishers, networks, and demand side platforms, and the preferred attribution solution for leading agencies including Horizon, UM, BPN, Initiative, Essence, and Digitas.
"Placed continues to cement its leadership role in attribution with the introduction of Placed Revenue," said Sarah Bachman, VP of Mobile Strategy at Horizon Media. "The addition of revenue in Placed Attribution enables us to see the impact of advertising down to the sale, providing a more complete picture of ROI."
"As mobile and location continue to garner a larger percentage of total media spend, marketers and advertisers are realizing the power of mobile location to measure advertising's direct impact on offline store visits and real world sales," said Monica Ho, Head of Marketing at xAd. "Placed Revenue and Placed Attribution have helped xAd's clients receive an unbiased and accurate view on return on ad spend and help the industry to unlock the true value of location-powered marketing."

Purchase Rate - Index 
Utilizing over 2 million first party survey responses in Q2 2015 tied to directly measured store visits combined with 3rd party data sources, Placed calculated and indexed the visit to purchase rate for the largest retailers in the US (excluding food and gas). 

Purchase Rate = Purchase In-Store / Store Visits
Index = 100 is the Average Purchase Rate for Retail

Dollar Stores and Warehouse Clubs lead the pack in terms of purchase rate. With the dollar stores, the price point seems to be the driver, while Warehouse Clubs are destinations for big ticket purchases. In terms of Drugstores, Walgreens leads the pack, but closely followed by Rite Aid and CVS.
Placed purchase rate

Average Spend - Index 
With each confirmed purchase, Placed registered the sales amount to calculate average order size per offline sale. This metric was then compared to overall average order size to generate an index to determine highest order size across the largest businesses in America. 

Average Spend = Total Revenue / Purchase In-Store
Index = 100 is the Average Spend for Retail

Coming in at twice the industry average includes the leading Warehouse Clubs, along with Electronics retailer Best Buy, and Home Furnishings store IKEA. Fashion Retailers also show a strong presence with Nordstrom, Dillard's, Macy's, Victoria's Secret, and Old Navy making the inaugural top 20.
Placed average spend

Efficiency Score - Index 
By measuring the amount of revenue generated per store visit, Placed is able to calculate an Efficiency Score highlighting retailers that maximize dollars spent per real world store visit. In terms of performance, the Warehouse Clubs continue to top the list with efficiency 3x the industry average. 

Efficiency Score = Purchase Rate x Average Spend
Index = 100 is the Average Efficiency Score for Retail

Coming in at twice the industry average includes the leading Warehouse Clubs, along with Electronics retailer Best Buy, and Home Furnishings store IKEA. Fashion Retailers also show a strong presence with Nordstrom, Dillard's, Macy's, Victoria's Secret, and Old Navy making the inaugural top 20.
Placed efficiency score


"Placed Revenue brings the measurability of the digital world to the physical when calculating the return on investment associated with digital advertising," said David Shim, Founder and CEO of Placed. "While mobile consumption has passed that of desktop, ad dollars haven't followed suit due to the lack of accountability, Placed Revenue changes that for brands, agencies, and publishers."

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