Performance marketing firm HookLogic, which was recently infused with Series C growth funding from Fung Capital USA, offers a technology platform that allows e-commerce retailers to better target consumers.
Jonathan Opdyke, chief executive officer and cofounder of the company, said by leveraging data, the platform can also be used to predict new consumers who would be interested in a brand or Web site. Opdyke discussed the platform, its use and current consumer behavior trends that are impacting e-commerce — especially how companies are seeing consumers navigate a “shopping journey” that begins on a smartphone or other mobile device.
WWD: Would you agree that it’s important for a brand to have various “touch points” that reinforce the brand or product along that journey? What would that look like?
Jonathan Opdyke: Absolutely, brands can’t underestimate the value smartphones play in a consumer journey in driving transactions on tablets, desktops and off-line. Today’s consumer shifts seamlessly between devices — and she no longer even realizes she’s doing it. Measuring attribution is difficult across the various media, but it doesn’t mean that stimulus and response isn’t happening.
WWD: Are brands and retailers fully leveraging the data that is generated on consumers? How can they do better?
J.O.: They are only scratching the surface today. In owned-media efforts, retailers and brands have gotten better at using e-mail and Web site personalization to show more relevant products, deals and content. But most have focused paid efforts on retargeting, which is only an immediate usage of data. Few are doing a good job of personalizing their paid media and predicting which customers may enter the market for their products.
WWD: Can you briefly discuss what your company means in regard to “projected return on ad spend.”
J.O.: We measure return on ad spend based on the cost of media in our platform and the sales that we can attribute. When we engage with a new advertiser, we have a sense of market pricing, how their products convert organically, and how similar products have performed in the platform, so we can give a sense of projected ROAS.
WWD: Each week it seems, there’s a new report out showing gains in consumers who use mobile devices to shop and make online purchases. Yet, companies have not made advertising investments in mobile. Why?
J.O.: Companies are increasing investment in mobile, however, not proportionally to the shift in traffic yet. The primary reason is challenging attribution measurement. The conversion rates on smartphones, while rising, are still a fraction of desktop and tablet. Given so many purchases cross devices, 40 percent according to a recent Criteo study, and also inform off-line purchases, we believe mobile is being severely handicapped in value. While multitouch attribution has been a big topic in the past year, we still fundamentally live in a last-click attribution world and that punishes mobile.