The concept of ‘cost per visit’ advertising has been growing in popularity due to the ability for systems to track when a person goes into a business after seeing a particular ad (typically through GPS locations on a smart phone). AdTheorent is working to take that system to the next level with their ‘cost per incremental visit’ model.
In this system, advertisers won’t be paying for a specific store visit from a customer, but rather only when the customer comes to the store that they wouldn’t have without the ad. This is determined through a number of different factors, but it seems that it is certainly possible to accurately calculate these numbers. They gather information from a number of places, including Placed, which is a third-party validation solution intended to build customer confidence in the system.
AdTheorent starts by looking at historical data, and combines that with predictive modeling. Based on this information, along with many other details, they can identify how many people are coming in only because of the advertisements.
According to AdTheorent, they have already gotten a lot of interest in this system because companies will truly only be paying for the benefit they receive. While this is still quite early on in the process, it seems that this could have a big impact on digital marketing for offline markets.
