Beyond the Buzzwords:“Big Data” and the New Demands ofRight-Time MarketingJonathan Margulies           13 November 2012Man...
Winterberry Group: Supporting the Growth of Advertising, Marketing,Media, Information and Technology Organizations        ...
Our AgendaBeyond the Buzzwords• A Brief History of  Data• How is Technology  Changing The Way  We Use Data?• What Does the...
To Put Things In Context: Today’s “Big Data” Opportunity IsAddressable to Advertisers, Marketers and Publishers Alike    T...
The Marketer: In the Beginning, There Were Subscriber Files…                  Name                        :               ...
… Which Begat Demographic “Selects,” Data Cards and the First TrueCommercial Data Models…                                 ...
… Which Begat Modeling, Segmentation, Coop Databases and—Withthe Arrival of the Internet—E-mail Data…H. Catalogus    H. Ma...
… Which Gave Rise to the Infrastructure—and a Whole Industry of Service Providers—Focused on Data Compilation and Manageme...
The Advertiser: For Many Years, “Data” Was Whatever The Agency(or the Media Provider) Said It Was                  “ A the...
Though Resources Would Emerge to Help Define the Size andStructure of Media Consumers, Old Buying Models Persist          ...
Disrupting Both Models: The Internet     70% of                      80% of U.S.   newspaper                              ...
Our Fundamental Problem Isn’t “Not Enough Data”                              Artwork Source: David Harbaugh,              ...
In Fact, The Growth of “Digital” Has Brought With It a Deluge of NewData Types       Postal Geo-/       Demographics      ...
But The Distinctions Between “Established” and “Emerging” DatasetsAre Stark                               • Structured: Ke...
And They’re Compounded By a Series of Secular Marketing Trends,Highlighting the Distinctions Between… Known Names/Addresse...
The Underlying Challenge: “Square Peg” Emerging Data Simply Don’t Fit Into the “Round Holes” Put Forth by Established Infr...
Our AgendaBeyond the Buzzwords• A Brief History of  Data• How is Technology  Changing The Way  We Use Data?• What Does the...
Thanks to Our Sponsors and Executive-Level Research Panel                Advertisers/                Marketers:           ...
Data Technology Has Evolved Organically—Originally Aimed atEnabling the Aggregation of Anonymous “Third-Party” Digital Dat...
The Data Management Platform (DMP) Emerged Organically toAddress a Wide Range of First- and Third-Party Data Sources    “T...
Despite Advances, Interpretations of the Role of the DMP Still Differ                                “A tool t            ...
The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
Interest in DMP Solutions is Substantial—And Growing Rapidly“How would you say that your (or your      “What type of role ...
Six Primary Use Cases Have Emerged—Defining the Long-Term Role      for Data in Advertising, Marketing and Publishing     ...
Use Case: Collecting and Managing Independent Feeds of Digital Data• Collection and integration of  disparate streams of d...
Use Case: Powering Targeted Online Advertising• Enables the economical, value-  oriented purchase of advertising  media—as...
Use Case: Empowering Deeper, More Insightful Customer Analytics• Powers deeper understanding of  consumer behavior, enabli...
Use Case: Optimizing the Digital Customer Experience• Enables the recognition of an online  visitor, as based on their exp...
Use Case: Developing Rich, Actionable Audience Segments forExpanded Media Sales• Enables identification of actionable  aud...
Use Case: Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications• Enables...
Interest in Data Platforms Is Being Driven by Widespread Need to Target Audiences Across Media             “Which of these...
Despite the Long-Term Potential of “Multichannel,” DMPs Today Are Geared Primarily to Support Digital Data Applications   ...
The Challenge to Deeper Deployment Isn’t Technology: It’s Internal  Operating Barriers                 “Which issues would...
Our AgendaBeyond the Buzzwords• A Brief History of  Data• How is Technology  Changing The Way  We Use Data?• What Does the...
Over the Next 12 to 18 Months… Technology Functionality WillExpand
Over the Next 12 to 18 Months… Analytics Will Become a MoreIntegral Component of the “Data Stack”
Over the Next 12 to 18 Months… Platforms Will Grow More Specialized
Over the Next 12 to 18 Months… Data Will Decouple from Technology
Over the Next 12 to 18 Months… The Landscape of Global SolutionProviders Will Consolidate
Over the Next 12 to 18 Months… Advertisers, Marketers and PublishersWill Embark on Process Transformation (with Technology...
In Summary: The Strategic Alignment of Data and TechnologyRepresents an Opportunity to…• Unite the interests of advertiser...
Thanks! And Don’t Forget to Download “The DMP: Foundation forRight-Time Marketing”                                        ...
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Beyond the data buzzwords jonathan margulies

  1. 1. Beyond the Buzzwords:“Big Data” and the New Demands ofRight-Time MarketingJonathan Margulies 13 November 2012Managing Director AMDIA Integra 2012
  2. 2. Winterberry Group: Supporting the Growth of Advertising, Marketing,Media, Information and Technology Organizations Strategic Consulting • Corporate Strategy • Market Intelligence • Process Optimization and Alignment • M&A Transaction Diligence Support • Investment Banking Services, through
  3. 3. Our AgendaBeyond the Buzzwords• A Brief History of Data• How is Technology Changing The Way We Use Data?• What Does the Future Hold in Store?
  4. 4. To Put Things In Context: Today’s “Big Data” Opportunity IsAddressable to Advertisers, Marketers and Publishers Alike The Advertiser The Marketer The Publisher• Reach • Direct Sales • Yield• Awareness • Performance • Advertising Revenue• Brand-Building • Response Rate • Gross Rating Points• Gross Rating Points • ROI • Circulation Audience Engagement
  5. 5. The Marketer: In the Beginning, There Were Subscriber Files… Name : Addre ss : H. Catalogus(0-~1980 A.D.)
  6. 6. … Which Begat Demographic “Selects,” Data Cards and the First TrueCommercial Data Models… NAME ADDRESS PHONE GENDER AGE INCOMEH. Catalogus H. Mailinglistus(-~1980 A.D.) (~1980s)
  7. 7. … Which Begat Modeling, Segmentation, Coop Databases and—Withthe Arrival of the Internet—E-mail Data…H. Catalogus H. Mailinglistus(-~1980 A.D.) (~1980s)
  8. 8. … Which Gave Rise to the Infrastructure—and a Whole Industry of Service Providers—Focused on Data Compilation and Management“Customer File”: Contact Info, Persistent Identifiers CRM, Demographics “Prospect File”: Demographics, Credit Scores Interactions Logs Transactional / Loyalty “Single Source of the Truth” Records Public Records Self-Reported “Intent” Data Mr. John Q. Customer H. Analyticus One Response Rate Way (~1990-2000s) New York, NY 10001
  9. 9. The Advertiser: For Many Years, “Data” Was Whatever The Agency(or the Media Provider) Said It Was “ A the turn o f the 20 th ce ntury, publishe rs t fo ug ht a fie rce ly co mpe titive battle . Using circulatio n fig ure s as we apo ns, publishe rs wo n adve rtising do llars by flo o ding the marke tplace with false and misle ading circulatio n claims. . . ”
  10. 10. Though Resources Would Emerge to Help Define the Size andStructure of Media Consumers, Old Buying Models Persist And advertisers generally haven’t been aggressive in seeking “audience accountability,” mostly due to… •Relationships •The visibility of mass media •Cultural resistance from “premium” brand publishers
  11. 11. Disrupting Both Models: The Internet 70% of 80% of U.S. newspaper 84% of online 53% of Internet users readers now Americans Americans engage with consume watch digital made an online social media and content via video content purchase in 2011 blogsdigital platforms Sources: Forrester Research; Newspaper Association of America; Nielsen
  12. 12. Our Fundamental Problem Isn’t “Not Enough Data” Artwork Source: David Harbaugh, Harvard Business Review
  13. 13. In Fact, The Growth of “Digital” Has Brought With It a Deluge of NewData Types Postal Geo-/ Demographics “CRM” History/ Surveys Catalog/E-Commerce Transactions Retail Transactions Print Circulation Broadcast Ratings Email Geo-/ Demographics
  14. 14. But The Distinctions Between “Established” and “Emerging” DatasetsAre Stark • Structured: Keyed to name and geo-locators • Media-Centric: Geared to needs of specific Established channels • “Slow Spoilage”: Decays at modest pace • Backed by Experience: Solid understanding of value, use cases, technical requirements • Unstructured: Collected via bespoke taxonomies; anonymous with respect to the individual Emerging • Media-Agnostic: Reflects online browsing behavior; useful for drawing wider inferences • “Fast Spoilage”: Decays at rapid pace • Still Early Days: Best practices in development
  15. 15. And They’re Compounded By a Series of Secular Marketing Trends,Highlighting the Distinctions Between… Known Names/Addresses… Focus on “Batch” Campaigns… er .C ustom Way ohn Q nse Rate Mr. J espo 001 O ne R rk, NY 10 Yo New … and Anonymous IP Addresses … and Real-Time Deployment Single-Channel Focus… … and Integrated Marketing
  16. 16. The Underlying Challenge: “Square Peg” Emerging Data Simply Don’t Fit Into the “Round Holes” Put Forth by Established Infrastructure ? Behavioral (Clickstream) Intent (Opt-In/Registered and Inferred) Web Analytics (Geo-/ Technographic)“Customer File”: Contact Info and Demographics “Prospect File”: CRM Demographics, Credit Scores Transactional / Loyalty Records Public Records H. Digitalus Self-Reported “Intent” Data (~2009-Today)
  17. 17. Our AgendaBeyond the Buzzwords• A Brief History of Data• How is Technology Changing The Way We Use Data?• What Does the Future Hold in Store?
  18. 18. Thanks to Our Sponsors and Executive-Level Research Panel Advertisers/ Marketers: 11% Publishers: Marketing 23% Services & Technology Providers: 66%N=163 , surveyed July-Sept. 2012
  19. 19. Data Technology Has Evolved Organically—Originally Aimed atEnabling the Aggregation of Anonymous “Third-Party” Digital Data “Third-Party” • Other Publishers/Advertisers • Digital Data Exchanges • Media Networks • Commercial Data Compilers
  20. 20. The Data Management Platform (DMP) Emerged Organically toAddress a Wide Range of First- and Third-Party Data Sources “Third-Party” “First-Party”• Other Publishers / • In-House Marketing / Advertisers Advertising Groups• Digital Data • Lines of Business / Exchanges Internal Data Owners• Media Networks • “On-site” /• Commercial Data Product Owners Compilers • Other Titles (Publishers)
  21. 21. Despite Advances, Interpretations of the Role of the DMP Still Differ “A tool t ata o ingest o rtant d store m and“Ma kes imp tral assive a ble i n a c en mounts availa n” of data” locatio “360-degree view “Pro of our data assets vides ” comp a lete out view s ab e” custo of “It’ enc “A ‘Big Data’ mers a udi ” activation solution” rce push a d ata sou e” here we medi“Ta ke any abl “W nts for t actionand make i “A tool gme geting” for se tar optimiz i interac ng tions”
  22. 22. The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
  23. 23. Interest in DMP Solutions is Substantial—And Growing Rapidly“How would you say that your (or your “What type of role do you think DMPs areclients’) interest in DMP solutions has likely to play in expanding the performancechanged over the last several years?” of companies’ long-term advertising and marketing efforts?” 77%92% Source: Winterberry Group
  24. 24. Six Primary Use Cases Have Emerged—Defining the Long-Term Role for Data in Advertising, Marketing and Publishing Collecting and Managing Independent Feeds of Digital Data INTERMED. Powering Targeted Online Advertising ADVANCED Current MaturityUse Cases Empowering Deeper, More Insightful Customer Analytics INT. (Adopt.) Optimizing the Digital Customer Experience LOW Developing Rich, Actionable Audience Segments for Expanded Media Sales LOW / INT. Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications LOW
  25. 25. Use Case: Collecting and Managing Independent Feeds of Digital Data• Collection and integration of disparate streams of digital consumer data—both first-party and third-party• Enables data management and activation from a central location• The “master use case” Maturity Growth Potential Intermediate, but rapidly High trending to Advanced
  26. 26. Use Case: Powering Targeted Online Advertising• Enables the economical, value- oriented purchase of advertising media—as well as optimization of message, creative and offer• Delivers messaging to “the right audience at the right time” when and where they appear online Maturity Growth Potential Advanced High
  27. 27. Use Case: Empowering Deeper, More Insightful Customer Analytics• Powers deeper understanding of consumer behavior, enabling highly accurate audience segmentation and upstream product development• Strengthens other use cases: enables more sophisticated media buying and selling, better customer experience management Maturity Growth Potential Intermediate (Adoption) / Moderate Advanced (Maturity)
  28. 28. Use Case: Optimizing the Digital Customer Experience• Enables the recognition of an online visitor, as based on their expressed and inferred interests, previous interactions with a brand and third- party browsing activity• Informs targeted messaging and creative treatments, with an eye on driving improved relevance Maturity Growth Potential Low Very High
  29. 29. Use Case: Developing Rich, Actionable Audience Segments forExpanded Media Sales• Enables identification of actionable audience segments (based on analysis of their online behaviors and known interests)—allowing media to be valued at a premium• Powers expansion of those segments by using powerful analysis to identify “lookalike” elements Maturity Growth Potential Low / Intermediate Moderate / High
  30. 30. Use Case: Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications• Enables recognition of an individual across channels—online, on a mobile device, via direct mail or on the e- commerce site—and powers relevant messaging and creative treatments at all touchpoints Maturity Growth Potential Extremely Low Extremely High
  31. 31. Interest in Data Platforms Is Being Driven by Widespread Need to Target Audiences Across Media “Which of these factors are major contributors to growing interest in (and demand for) DMP solutions?” 87% 83% 81% 74% 73% 63% 63% 63% 59% 54% Need to The shift to Want more Emergence of Want to Need to Need tools to Need a General need Need to improve ad "audience connected automated optimize realize the manage large strategy for to gain connect off- targeting buying" customer digital media media buying potential of amounts of tackling "big competitive /online data effectiveness insights buying efficiencies cross-channel data data" advantage in a privacy marketing compliantSource: Winterberry Group way
  32. 32. Despite the Long-Term Potential of “Multichannel,” DMPs Today Are Geared Primarily to Support Digital Data Applications “What types of data are currently managed by DMPs?” 96% 92% 64% 58% 56% 55% 53% 51% First-party Third-party Offline Social media Search Mobile Location-based Email behavioral behavioralNote: Panelists were asked to select all applicable data typesSource: Winterberry Group
  33. 33. The Challenge to Deeper Deployment Isn’t Technology: It’s Internal Operating Barriers “Which issues would you describe as ‘major hurdles’ inhibiting faster data technology deployment?” 73% 71% 63% 56% 55% 44% 38% 32% 15%Internal process No clear internal No clarity into Lack of Lack of clear Concerns about Concerns over Lack of Prefer to wait and marketing owner for DMP the role of DMPs established business case / privacy, security cost addressable for next operations solution in the C-suite performance ROI and data data to fuel generation hurdles metrics expectations governance DMP use technology Source: Winterberry Group
  34. 34. Our AgendaBeyond the Buzzwords• A Brief History of Data• How is Technology Changing The Way We Use Data?• What Does the Future Hold in Store?
  35. 35. Over the Next 12 to 18 Months… Technology Functionality WillExpand
  36. 36. Over the Next 12 to 18 Months… Analytics Will Become a MoreIntegral Component of the “Data Stack”
  37. 37. Over the Next 12 to 18 Months… Platforms Will Grow More Specialized
  38. 38. Over the Next 12 to 18 Months… Data Will Decouple from Technology
  39. 39. Over the Next 12 to 18 Months… The Landscape of Global SolutionProviders Will Consolidate
  40. 40. Over the Next 12 to 18 Months… Advertisers, Marketers and PublishersWill Embark on Process Transformation (with Technology in Mind)
  41. 41. In Summary: The Strategic Alignment of Data and TechnologyRepresents an Opportunity to…• Unite the interests of advertisers, marketers and publishers• Present a foundational infrastructure for managing cross-channel customer experience• Demonstrate the value to be received from other data and technology investments• Initiate the activation of “big data”— putting the marketer in the driver’s seat for enterprise data strategy• Make sure we always have enough acronyms to keep us confused!
  42. 42. Thanks! And Don’t Forget to Download “The DMP: Foundation forRight-Time Marketing” Jonathan Margulies Managing Director jmargulies@winterberrygroup.com www.winterberrygroup.com
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