NEW YORK - A YP executive at the 2014 MMA Forum explained how the company is using scientific rigor to accelerate behavioral and location-based product development in advertising through its newly acquired ad firm Sense Networks.

YP analytics now includes techniques that employ user demographic data and interests to uncover how users engage, who they are and how their behavior varies by multiple attributes. These reports can be used to evaluate how user behavior varies by demographics and interests, so marketers can build segments using these analysis to refine campaign strategies.

?It?s almost standard that an advertiser will come in with a particular set of guidelines or targeted constraints that they are interested in and they have a particular segment they want to target,? said Dr. David Rosenberg, chief scientist at YP Mobile, New York.

?Generally these are in terms of demographic profiles like income or age range, and we find that when you look at the metrics, the key performance indicators designated to the campaign, one of these preconceived notions of who you want to target rarely ends up leading to best performance compared to a strategy of targeting users who you observe in the data in response to an app or other media,? he said.

Building momentum
YP traditionally focused on search efforts up until its procurement of Sense Networks, which applies science to mobile location data for predictive analytics in advertising, allowing YP to expand into mobile display.
Sense Networks is a mobile targeting platform that delivers advertising based on user location and behavioral data. Assembling real-time information from mobile phones, GPS devices and Wi-Fi, the platform uses machine learning algorithms alongside consumer behavior research to predict mobile user activity.

Moreover, Sense Networks analyzes data sets such as latitude and longitude information to help advertisers target mobile users. It offers real-time bidding, audience segmentation and mobile analytics and retargeting tools advertisers can target against, as well as measuring in-store visits.

YP bought the company to essentially grow its mobile display ad capabilities, complementing its local search functions in mobile advertising. With this technology, YP can better improve and grow its mobile advertising leadership via enhanced targeting to consumers.

Location, location, location
YP is increasingly interested in location data as it reveals shopping patterns and lifestyle and demographic insights.

While geo-fencing and similar technology targets places, it neglects to truly target individuals.

The YP Mobile lab collaborating Sense Networks can deliver targeted mobile ads to people living within certain proximity to a store, are of a target age group, or who have visited a competitor through MacroSense and incentivize them with coupons and promotions to create a local search experience that benefits both businesses and consumers.

The technology platform builds mobile user profiles, which encompass more than 1,000 behavioral traits extracted from location data. MacroSense receives the data in real-time from mobile devices, then processes it in the context of historical data points to analyze with hopes of gaining a better understanding of consumer activity and mobile.

Likewise, the former startup?s real-time bidding ad platform AdMatch, targets ads through mobile ad exchanges and integrates MacroSense profiles to deliver sophisticated and effective mobile targeting beyond just location.

The race to deliver localized, targeted ads to consumers includes major players besides YP. Google displays local ads triggered by user search on its maps feature, and Facebook and Twitter are also chirping about location based mobile ad capabilities.

Other mobile advertising companies that offer location-powered mobile advertising capabilities similar to Sense Networks could be pulled into the big leagues next.

?YP Mobile labs is setting off about a dozen group data scientists and engineers exclusively focused on solving big problems in mobile advertising,? said David Petersen, vice president of national markets group at YP, San Francisco.

?It?s all about using scientific method to solve some of the biggest challenges that you see in the industry, and accelerate product development and connection between consumers and business," he said.