State of the Market LOCATION POWERED MOBILE ADVERTISING:

The Impact on the Quick Service and Casual Dining Category

› QSR / Casual Dining campaigns that leveraged location data performed 2x those that didn’t

› Nearly 70 percent of all QSR / Casual Dining campaigns leveraged location targeting

› The leading location targeting strategies leveraged were Geo-aware, Geo-fence and Audience targeting

› Verve’s Place Insights™ audience targeting technology allowed us to analyze QSR / Casual Dining campaigns and identify optimal audiences for QSR / Casual Dining advertisers

› Verve advanced location analytics uncovered a 3x lift in foot traffic for national casual dining brand

Market Highlights:

GOALS OF THIS REPORT:

› Highlight the various mobile targeting strategies being implemented by QSR / Casual Dining brands

› Illustrate how QSR / Casual Dining brands are utilizing location data to drive brand awareness, launch new menu items, and increase restaurant foot traffic and spend per customer

› Identify optimal Place Insights™ audience segments for QSR / Casual Dining advertisers

2

As the trusted mobile partner

to some of the top QSR /

Casual Dining brands in the

world, Verve provides

location-based mobile media

strategies and location-based

creative solutions to make these

brands’ mobile advertising

programs more successful.

› Showcase examples of best performing location powered mobile campaigns in the QSR / Casual Dining category

Based on over 100 mobile campaigns in the QSR / Casual Dining category that were delivered between January 2012 and March 2013 by Verve

Nearly 70 percent of QSR / Casual Dining mobile campaigns delivered by Verve leveraged a location-based targeting strategy.The principal location strategies employed by QSR / Casual Dining

advertisers were

SUCCESS STORY // GEO-FENCE // CASUAL DINING

Tasting the success of location targeting

Location Strategy Distribution

QSR / Casual Dining campaigns that had a location-based targeting strategy

performed almost 100 percent better than QSR / Casual Dining campaigns that

did not leverage location. Click-through rates for location targeted QSR /

Casual Dining campaigns averaged 1.21 percent vs. .61 percent for QSR /

Casual Dining campaigns that did not use location data.

DMA 53%

DMA 53%

Geo Aware16%

Geo Aware16%

Run of Network16%

Run of Network16%

Content10%

Content10%

Audience10%

Audience10%

Campaigns by Location Strategy

Geo-fence27.59%

Geo-fence27.59%

Geo Fence8%

Geo Fence8%

Geo-aware55.17%

Geo-aware55.17%

Audience17.24%

Audience17.24%

Geo-aware (location targeted to the desired market [typically city or DMA]

with the user’s distance-to-nearest-location pulled into a dynamic banner);

Geo-fence (targeted only to users within a specific radius of advertiser

restaurant locations); and

Audience (targeting user segments built on location data).

1)

2)

3)

Performance Comparison

AverageLocation-based CTR

Average Non Location-based CTR

1.21% 0.61%vs.

QSR / Casual Dining campaigns that leveraged location data performed 2x those that didn’t

PROMOTION: New healthy dining menu

GOAL: › Generate awareness and interest in

ordering off of the new healthy menu at a popular Italian casual dining chain among females between the ages of 35-45 who aim to live a healthy lifestyle.

› Increase the number of dine-in consumers.

STRATEGY:Implement a geo-fence around locations where clusters of health-conscious females are most likely present such as high-end health food stores and gyms as well as geo-conquesting around the competitor restaurant locations.

EXECUTION: › Standard banners with

tap-to-map functionality › Geo-aware expandable units with

tap-for-menu feature and map › Audience targeting leveraging

place-based, demographic and transactional data.

RESULT:All units performed exceptionally well. Markets that showed the highest engagement rates were Cleveland, New York City and Washington D.C.

CTR:

4.0%

3

Intuitive / High Performers

Soccer Moms

Vacation Travelers

Sports Enthusiasts

Place Insights™ Surprises

Pet Lovers

Techies

Intuitive / Low Performers

Health Nuts

Foodies

Medical Professionals

4

SUCCESS STORY // GEO-AWARE // QSR

Mobile moves menu items

Place Insights’™ unique analytics allowed us to uncover remarkable and unexpected audiences with affinity for QSR / Casual Dining Earlier this year Verve announced its revolutionary Place Insights™ mobile

audience targeting technology. This unique platform allowed us to analyze

all the QSR / Casual Dining campaigns included in this report and identify

the optimal audiences for QSR / Casual Dining advertisers.

Some of the results were intuitive and as expected: for example, the Health

Nuts, Foodies and Medical Professionals segments performed poorly while

Soccer Moms, Vacation Travelers and Sports Enthusiasts had high

engagement for QSR / Casual Dining offers. But interestingly, Pet Lovers

and Techies also had high engagement.

PROMOTION: Discount Menu for large national QSR brand

GOAL:Advertise items on the Discount Menu and drive on-the-go mobile consumers to the nearest restaurant location.

STRATEGY:Gain insight on how consumers engage with the advertiser’s mobile content when location information is displayed in the banner creative and the impact location has on driving foot traffic into that advertiser’s restaurant locations.

EXECUTION: › Dynamic standard banner with

tap-to-map functionality › Dynamic expandable with

interactive menu gallery, restaurant map and social media integration

CTR:

3.21%

RESULT:Consumer engagement with the expandable ad unit was approximately 23 seconds within both creative executions. Users spent between 1-15 seconds interacting with the standard ad unit.

But did they go into the store? Advanced location analytics from Verve provide insight The prospect of demonstrating true ROI for an advertising campaign is something that

has been sought by advertisers since the time of J. Wanamaker. In the mobile space,

Verve has long used advanced location analytics, among other approaches, to measure

the effectiveness of geo-targeted advertising campaigns. In our QSR / Casual Dining

category research we found some pretty interesting data.

Verve location analytics uncover 3X lift in foot traffic for national CDR brandWe measured how mobile consumers’ behavior changed based on increased brand

exposure through our location targeted mobile advertising -- specifically whether there

was a correlation between a user who viewed an ad and subsequent store visits. Verve’s

data scientists analyzed the behavioral patterns of users in connection with a campaign

for a major casual dining chain. The campaign had three primary objectives:

Leverage location targeting to…

Increase awareness and

engagement with the brand

Drive foot traffic to locations

Drive foot traffic away from

competitive venues

1)

2)

3)

Using Verve’s location data and targeting capabilities /products, Verve targeted

consumers near the advertiser’s locations and consumers near competitive venues.

Methodology Verve measured consumer

behavior for those who were

exposed to an ad and those who

were not. Those users who were

not previously exposed to an ad

but visited an advertiser’s location

were used as the control group.

Verve compared the control group

to the exposed visitors. Verve also

segmented the exposed users

based on their location when they

observed the creative.

FindingsLocation targeted advertising

from Verve revealed a greater

than 3X lift in foot traffic to the

advertiser’s locations.

Not only did exposure to the ad

increase the likelihood a user

would visit an advertiser location,

it also decreased the likelihood

a user would go to a competitor’s

location by more than 20%.

We recognize that this approach is not a panacea to the attribution challenge and has inherent limitations. The approach only

measures users on location-aware apps that happen to open the app in the store / restaurant so it tends to skew toward venues

that invite leisure time (think coffee shop, casual dining or big-box retailer) vs. venues that are more transactional (in and out

purchases). Our research also shows that it tends to skew toward certain kinds of apps like chat and games that people use to

kill time and which skew toward a particular audience segment. But, nevertheless, it’s still a valuable tool and source of insight

for brands trying to drive foot traffic as we continue our research to demonstrate mobile advertising ROI. More to come.

Lift inFoot Tra�c

3x

5

Further Thoughts / Findings:

6

New York1450 Broadway41st floorNew York, NY 100181-800-595-0842

Washington DC4701 Sangamore RdSuite N220Bethesda, MD 20816(760) 479.0055(760) 479.0056 fax

San Diego5973 Avenida EncinasSuite 101Carlsbad, CA 92008(760) 479.0055(760) 479.0056 fax

For more, please visit:

vervemobile.comLet’s connect: facebook.com/vervemobile

twitter.com/vervemobile

linkedin.com/company/vervemobile

or you can contact us:insights@vervemobile.com

6© 2013 Verve Wireless, Inc. All rights reserved.

Mobile leadership with a difference

Verve is the leader in location-based mobile advertising. Our customers are national brand advertisers who want to

engage consumers on their mobile devices with location-aware, data-driven and highly targeted marketing.

We also serve local premium publishers and channel partners across the nation, delivering the platforms and

services they need to power and monetize their mobile offerings.

The Verve location powered technology platform and the proprietary data it generates are revolutionizing mobile

media and advertising. It enables consumer and content brands to reach their desired audiences on the go, out and

about, and closer to the buying decision than ever before.

Verve has been leading the way in location powered mobile advertising

since 2005 and has offices in New York City, Washington DC, Atlanta,

Detroit, Dallas, Chicago, San Francisco, and San Diego.

Geo-ConquestingServed ad near

competitor's locationthen visited

advertiser's locationGeo-FencingServed ad near advertiser's locationthen visited

-18%3.1x

-23%3.9x

Advertiser’s Location

more likely to visit

more likely to visit

less likely to visit

Competitor’s Location

less likely to visit

G

eo-Fence Advertiser’s Location

Geo-Fence Competitor’s Location

Verve Driving Foot Traffic!