Location-technology company Foursquare wants to get in on the race to devise a better yardstick to measure the effectiveness of TV commercials.
Sandwich-chain Subway has agreed to use Foursquare’s attribution technology that measures how effective TV ads are at driving consumers to stores, restaurants and other retail outlets. The partnership helps to illustrate the growing demand Madison Avenue is putting not only on how many consumers their commercial reach – typically gauged by data providers such as Nielsen – but also on whether those ads actually prod potential customers to consider a purchase of the product being advertised to them
The technology “allows us to have even more accountability for every dollar spent on behalf of our franchisees,” says Melissa Sutton, Subway’s director of media. By attempting to tie commercials to purchase behavior, “we’re able to gain a more holistic understanding of the role TV ads play in our broader media plan, and identify the combinations of media, channels, and creatives that drive the most return on investment.”