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NativeX helps advertisers pinpoint exactly the right mobile users with psychographic targeting

Not many 13-year-olds can truthfully claim to have the power to triple revenues from in-app mobile advertising; however,native mobile advertising firm NativeX – year of birth 2000 – claims to be able to yield benefits like this with its new ‘psychographic’ targeting technology.

A new breed of mobile advertising targeting technology

People holding media jobs in mobile advertising agencies will doubtless note a certain disingenuousness in the opening sentence: a young company is not quite the same as a young human being. In 13 years, however, the Minnesota-based company – which began life as W3i and was rebranded to NativeX in March this year – has developed what it proudly describes as “the most precise demographic targeting technology to date.”

NativeX points out that most of its rival companies use a couple of attributes at most to target mobile ads – typically location and device type – but NativeX’s technology weighs up hundreds of thousands of additional attributes, including education, ethnicity, income, age and gender, and many, many more besides. Armed with data as nuanced as this, advertisers can home in on the precise type of user they are seeking.

Bieber, Beyoncé or bears?

By way of an explanation about how the technology works, the team at NativeX cites the example of a poster vendor confronted by a class of 100 high school girls wanting to buy posters. The easy option would be to go for big popularity hyper-stars, so the vendor might be tempted to hand out just one Justin Bieber catalog for the class to peruse; you don’t get more mega-popular celebs than young Mr Bieber, after all. The vendor can probably bank on around 20 teens who will buy the merchandise in multiples, but what about the other 80? What – or who – do they like?

NativeX’s smart engine can collect and interpret data about all 100 students, providing invaluable insights into their individual preferences. This means the vendor can hand out catalogs targeting each girl’s interests rather than a solitary Justin Bieber offering, and will reach not just the big Bieber spenders but others who might prefer bear cubs or Beyoncé.

NativeX basically uses anonymous user surveys to capture app demographics. Early tests showed that this type of targeting boosted eCPMs – the money paid by advertisers for every 1,000 impressions – by 500% to 600%, which is pretty impressive.

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