beyond the forecast: forecasters of feeling, influencers of behavior

PowerPoint Presentation

Forecasters of Feeling.Influencers of Behavior.

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Agenda Weather

Location

Cognitive Computing

The Weather Company is the #1 Provider of Weather Data in the WorldTV WeatherDigital Consumer WeatherB2B Weather

Apple iOSGoogleYahooWeather UndergroundThe Weather Channel

3The Weather Company, an IBM business Forecasters of Feeling

Historic Data Points from Public Sources

Public Sources vs. Weather channel sensors

Weather.com sensors for collecting weather informationPublic sources sensors for collecting weather informationThe Weather Company offers industry-leading weather data coverage>100X better than public sources 4The Weather Company, an IBM business Forecasters of Feeling

170M UNDUPLICATED UNIQUES ACROSS SCREENSWebMonthly Uniques nearly 20% of All UsersMobile Apps & Browsers 57% of the Smartphone US UniverseTablet12% of all users70 MILLION90MILLION10 MILLION

The Go-To Source for Weather Across Every ScreenWeather is a Daily Ritual1 in 3 users start & end their day with The Weather CompanyThe Weather Company, an IBM business Forecasters of Feeling5

Probably no surprise here 170M Mobile officially surpassed desktop which makes sense, how many of you have the app?

We live in a period of unprecedented connectivity9/23/20166The Weather Company, an IBM business Forecasters of Feeling

We live in a period of unprecedented connectivity

Smart phones. Tablets. Appliances. Connected vehicles.9/23/20167The Weather Company, an IBM business Forecasters of Feeling

Smart Phones. Tablets. Appliances. Connected Vehicles

We turn that data into insights

8New York Above average wind speed causes indoor paint sales to increase in the fall.AtlantaAbove average wind and below average humidity causes frozen food dinner sales to increase in the summer.Los Angeles Cooler and cloudier than normal cause facial cleanser sales to increase in the spring? The Weather Company, an IBM business Forecasters of Feeling

And it is all of these insights that we use to create actionable insights for your brand. 8

Because weather is the secret to understanding how consumers feel9/23/20169The Weather Company, an IBM business Forecasters of Feeling

Because weather is the secret to understanding how consumers feel.

Ultimately predicting how theyll behave.9/23/201610The Weather Company, an IBM business Forecasters of Feeling

Ultimately predicting how theyll behave.

Weather is highly relative.

The exact same temperature can trigger very different behaviors depending on your location11The Weather Company, an IBM business Forecasters of Feeling

How many of you are familiar with weatherfx? Its a form of weather targeting. Which, like many, weve been doing for years - hot, cold, rain, snow - but what we learned is that it isnt really accurate because cold isnt cold everywhere. 34 degrees in Miami is freezing so thats great that your cold message ad is seen there but 34 degrees in Colorado in the winter is actually a nice day so your cold weather message suddenly becomes irrelevant and the impression is wasted. Point is, weather is relative. The same exact temperature and condition triggers different behaviors depending on your location. And its not just temperature, its things like cloud coverage and humidity, dew point all of it can have an impact on what you do, or wear or buy.

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It starts with a deep understanding of how weather affects human emotion12The Weather Company, an IBM business Forecasters of Feeling

All of this is made possible due to our deep understanding of weather. While different temperature and weather conditions may vary in terms of what it takes for some one to feel cold or hot, etc., weve conducted research and learned that when consumers feel cold or hot, etc., they are likely to engage in similar consumer behaviors.

For example, we learned that weather that feels cold and sunny during seasonal changes spur feelings of optimism and a willingness to try new things. Its these insights that inform the triggers.

The Weather Company Weather + Consumer Mindset, November 2014. 12,205 Respondents, 9 NOAA Regions, In Memory and in Moment

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Plus analysis of weather through four key dimensions:13The Weather Company, an IBM business Forecasters of Feeling

We also analyze weather through four key dimensions: Season, Condition Mix, Relative Temperature and Time.13

SeasonWe normalize data based on what is considered typical for time of year in 6 seasons


We break up the calendar into 6 segments that includes transitional periods between Spring and Summer and between Summer and Fall. Weve added the Spring-Summer and Summer-Fall segments because it is during these two transitional periods when we see the highest weather impact (correlation between weather data and sales data). 14

Condition mix We consider over 30 variables across 44,000 zip codes and 6 seasons


We also look at various condition mixes and the impact they have on behavior. We look at over 30 weather conditions across 44K zip codes and 6 seasons. 15

And we utilize triggers to eliminate media wasteTriggers only serve messages to the people who are primed to receive them, eliminating the chance of media waste during sub-optimal conditions

16Example: Sunscreen

New York, DMA

Weather Conditions

Product FeaturedMessaging shownMessaging shownMessaging shownNo Messaging shownNo Messaging shownThe Weather Company, an IBM business Forecasters of Feeling

And we utilize triggers to eliminate media waste.

Triggers only serve messages to the people who are primed to receive them, eliminating the chance of media waste during sub-optimal conditions

Weather Triggers Connect Messaging with Consumers, Influence Action, and Dynamically Optimize MediaRelative Condition TriggersBased on location and season

EXAMPLESCurrent/Forecasted Pollen+HumidityForecasted/Current Sunny Recent Inclement Weather+WindyActivity TriggersBased on consumer activity data and insights

EXAMPLESOutdoor ActivityOptimal In-Store ShoppingOptimal Online Shopping

17Product TriggersBased on product usage and sales

EXAMPLESCPGOTC/PharmaGroceryThe Weather Company, an IBM business Forecasters of Feeling

Weather Triggers Connect Messaging with Consumers, Influence Action, and Dynamically Optimize Media

Relative Condition Triggers Based on location and season. (Current/Forecasted Pollen + Humidity)Product Triggers Based on product usage and Sales (CPG, OTC/Pharma, Grocery)Activity Triggers Based on consumer activity data and insights (Outdoor Activity, Optimal In-Store Shopping)

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The Winning Formula

When to RunActivate media only at themost optimal timeWhere to RunActivate media at the hyper-local level, where the message is most likely to resonateWhat to TargetOptimal mix of weather conditions based on weathers impact on salesWhat to RunServe the right creative message to drive results

Who to TargetIdentify key retailers and ideal geo footprint

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Predictive technology to recommend specific products to consumers based on current and forecasted weather conditions in their locationReaching the right consumer at the right time with the right message drives consumers to act on that message12345


With all this data, we are able to understand who to Target (Identify key retailers and idea geo foodprint), Where to run (activate media at the hyper-local level where the message is most likely to resonate), What to Target (optimal mix of weather conditions based on weathers impact on sales), When to Run (activate media only at the most optimal time) and What to run (serve the right creative message to drive results)18

WeatherFX19Automated targeting platform Leverages weathers impact on emotionDelivers messaging that drives consumer actionThe Weather Company, an IBM business Forecasters of Feeling

WeatherFX is an automated targeting platform that leverages weathers impact on emotion to enable marketers to deliver messaging that drives consumer action.19

Custom analysisEnterprise clients share 1st party data to gain a deeper understanding of how weather impacts their business


Custom weather analysis will identify the most weather-impacted product categories to promote with WeatherFX, and once categories aredetermined, the analysis will also identify the most weather-endemic products within those categories

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How it all comes togetherAn overview of our engagement framework

The Weather Company, an IBM business WeatherFX21CLIENT HISTORICAL SALES DATATWC PROPRIETARY WEATHER DATACROSS-CHANNEL ACTIVATIONWEATHERFX SALES DATA ANALYSISSPECIFIC PATTERNS IN EACHSEASON AND GEOGRAPHIC REGIONOPTIMAL WEATHER CONDITIONMIXES FOR EACH PRODUCTIDENTIFIES MOST WEATHERIMPACTED PRODUCTDIGITAL MEDIAMOBILE DISPLAYSOCIALCRM/EMAILCONTENT

The Weather Company, an IBM business Forecasters of Feeling

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LOCATION BASED AUDIENCESPOWERED BYThe Weather Company


Location is inherent to what we do everyday. We bring millions of consumers hyperlocal weather forecasting in real time. we have an understanding of location like no one else.22

PERMISSIONSOUGHT

80%Of users opt in to share location services99.4%Of our location data has lat/long accuracy23The Weather Company, an IBM business Forecasters of Feeling

Think about other apps that ask for your location dont allowWeather 80% opt in if I want an accurate forecast, I need to share where I amWhich means our location data is simple unlike 3rd party garbage data thats scrubbed and repackaged, Weather uses pure 1st party data from you telling us where you are at any given moment

242-5DAILY CHECK-INSONE BILLION+WEEKLY PINGS50MDAILY MOBILE USERSThe Weather Company, an IBM business Forecasters of Feeling

This means we have 1 billion location pings per week from our users that we are mapping each week. That means are audience segments are continuously being updated and we can ensure you are getting the most up-to-date, accurate audience segments available. Other apps, where users are only opening them once a week, have stale data and cant promise you this.

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The result is one of the worlds largest continuous sets of first party location data that we use to build accurate and precise portraits you can target.25The Weather Company, an IBM business Forecasters of Feeling

The result is one of the worlds largest continuous sets of first party location data that we use to build accurate and precise portraits you can target.

And they can help us forecast how consumers will behave in the future. 26The Weather Company, an IBM business Forecasters of Feeling

And they can help us forecast how consumers will behave in the future.

27Continuously processes real-world behaviorsCreates portraits of your ideal consumerTargets them when and where it countsLocationFXThe Weather Company, an IBM business Forecasters of Feeling

LocationFX continuously processes those real-world behaviors to create portraits of our ideal consumer and enables you to target them when and where it counts.

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Location Based Audience Example:

FITNESS ENTHUSIAST

SEEN AT (LOCATIONS)LA Fitness, Equinox, Pure Barre, New York Sport Clubs, Dicks Sporting Goods, athletic fields, tennis courts, and swimming pools

INSIGHTYoung adult who focuses on fitness. Considers sportswear fashionable. Prefers healthy food options.6xlast 30 days(retailers)


example The way most people do audience targeting is through web history which can be very misleadingAnd our location data isnt just used for audience targeting we can geo-target and geo-fence with a level of accuracy thats unmatched. 28

At The Weather Company, we help fuel your marketing through connected, intelligent data, ultimately driving brighter decisions and better outcomesThe Weather Company, an IBM business Forecasters of Feeling

At The Weather Company, we help fuel your marketing through connected, intelligent data, ultimately driving brighter decisions and better outcomes.

2.5 quintillion bytes of new data created daily Expertise matters more today than ever, but even top experts cant keep upAre you ready for the challenges and opportunities?The Weather Company, an IBM business Forecasters of Feeling

IBM Confidential

The Opportunity

How do wetranslate datato drive results?

How can we reach customers in a meaningful way across channels?

How can wemeasure & report, learn & improve?

How can we understandcustomer wants & needs across segments?

How should we optimize the asset development process?


Now, as an IBM Business, we can combine IBMs and The Weather Companys collective capabilities to develop more comprehensive and unique shared services offerings -

CognitiveCloudWatson IoTAnalyticsCommerceUser ExperienceMarketing Activation at ScaleAd Product TechnologyContent DevelopmentWatson AdsWeather/Location Insights & AnalyticsWeather Data IntegrationLocation based AudiencesSales Results


Add digital and mobile

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Analytics/Insights Cognitive: Next Best Action DecisioningDigital Experiences

Audience TargetingWeather Triggering Media ActivationCognitive AdvertisingFor example, the Weather Company can amplify the results of IBMs analytics by identifying activation opportunities to target consumers with the right messaging at the right time, based on insights generated


And together with IBM, were pioneering cognitive computing to make even more of tomorrow.9/23/201634The Weather Company, an IBM business Forecasters of Feeling

35Cognitive Advertising: The Next Frontier in Marketing

Watson Ads is anindustry-first capability in which consumers will interact with IBM Watson through advertising, by asking questionsvia voice or text.

Watsons machine learning and natural language capabilities enable accurate responses, giving consumers a fun, surprising, informative and highly personalized experience.


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Better understand brand perception and favorability

Help consumers make more informed decisions at point of consideration

Improve the customer experience

Aid product information

Inform and optimize creative strategies

Help marketers use data more effectively36

Harness the power of cognition and the learnings toNOW:The Weather Company, an IBM business Forecasters of Feeling

notes needed. 36

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Thank You38