Blog skyhook logo How to Increase Ad Performance with Location-Based Context

Oct 8, 2014 10:30:00 AM

How to Increase Ad Performance with Location-Based Context

Posted by Skyhook

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The mobile ad ecosystem is a crowded marketplace of companies hustling to differentiate themselves and prove their value. When honing in on Demand Side Platforms (DSPs) specifically, the biggest differentiators for DSPs are their abilities to return the highest engagement out of their users - which also results in higher ROI for their clients. Because each DSP has their own specialty - from performance-based to highly targeted brand campaigns - their capabilities to serve their user base with the most relevant ad message is essential, as it drives campaign success.


As a result, the ultimate goal of DSPs is to devise the most accurate and relevant algorithm as possible to not only attract and appeal to potential advertising clients, but to deliver high-performing campaigns for their advertising partners in order to earn their recurring business. To do this, they must be able to optimize audience targeting and find inventory that advertisers want.

In order to make these optimal ad requests, the DSP must be able to make sense of the data they receive from their supply sources - SSPs, publishers, ad networks, or other supply partners. Wherever the source, an ad request comes to the DSP with an IP address, device ID, timestamp and latitude/longitude, but this information is of little help when determining if the ad request will generate engagement.

Leverage Your Audience by Adding Context: Identifying and Serving Personas

Enriching this data with accurate and contextual location information can help make sense of ad requests. Linking ad requests to personas and tagging device IDs with demographic information can give DSPs insight into what kinds of people will see the ad and will enable the DSP to facilitate better targeting when they work with ad servers.

Skyhook’s Personas can make sense of the generic data that the DSP receives when viewing an ad request and can inform the DSP of which ad requests are performing the best and delivering the greatest ROI. By layering the ad request with demographic data (age, gender, income, marital status, education level, etc.), psychographic data (likes and interests), and behavioral data, the DSP can then make a contextually informed decision on which personas it wants to target and which ad inventory it wants to buy.


Skyhook can make ad requests and IP addresses more contextually aware, which can revolutionize mobile advertising. DSPs can look at all these different IPs with real context and meaning, because Skyhook can take an IP address or device ID and tell you the exact context of the user - beyond data just available online - and deliver more relevant information, such as behavior and demographics.

For example, a person who fits the “Auto Intender” persona can be observed through their visits to multiple car dealerships. Or, a user who visits beauty supply shops and high end clothing stores and has an income of over $200k is classified as a Luxury Shopper. All this audience intelligence can be discerned with Skyhook’s Context SDK or Personas product - and because we can assign anonymous personas to these IP addresses and device IDs that come with an ad request, you are able to scale in a privacy-friendly way.

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If you are a DSP looking to take your algorithm to the next level with the best location available and the supporting context that comes with it, talk to Skyhook today about how we can help you to better leverage your users.personas_streetscene3