3. CH 2 : DATA-DRIVEN MARKETING 29
BRYAN SCANLON
ROB JAYSON DAVE MORGAN MATT SPIELMAN
PRESIDENT, SCHWARTZ
CHIEF DATA OFFICER, CEO, SIMULMEDIA SVP OF STRATEGY, MOXIE
MSL AND NORTH AMERICA
ZENITHOPTIMEDIA
TECHNOLOGY DIRECTOR,
Dave Morgan is the CEO and Matt Spielman is the SVP of
MSLGROUP
Rob Jayson leads ZenithOptimedia’s founder of Simulmedia. He Strategy for Moxie, a full-service
worldwide data strategy, a role he previously founded and ran both digital advertising agency within
Based in Silicon Valley, Bryan
assumed in 2012. A combination TACODA, Inc., an online advertising the Publicis Groupe. He heads
Scanlon is the president of
of continual innovation, robust company that pioneered the digital AOR and leads the
Schwartz MSL, a global public
analytics and tools development behavioral online marketing and strategy and innovation initiatives
relations agency specializing in
have allowed him to be was acquired by AOL in 2007 for for L’Oreal USA. Prior to joining
the technology, health and energy
instrumental in finding new and $275 million, and Real Media, Inc., Moxie, Spielman spent six years
innovations that transform business,
exciting ways to approach one of the world’s first ad serving at MTV Networks where he
preserve the planet and save lives.
communications planning. As and online ad network companies helped build the network’s Client
He also leads the MSLGROUP North
Chief Data Officer, Rob oversees and a predecessor to 24/7 Real Solutions Division, working with
America Technology Practice,
the agency’s Global Analytics Media (TFSM), which was later senior marketing clients to develop
helping clients move innovation to
Center (GLANCE), collaborating sold to WPP for $649 million. and deploy marketing initiatives
the forefront of their brands, and
with ZO entities such as Ninah, After the sale of TACODA, Morgan that leveraged the entirety of
specializes in information security,
Performics and Moxie. He also served as Executive Vice President, MTV Networks properties, brands
big data and analytics, and data-
manages the implementation of Global Advertising Strategy, at and assets across all media. He
driven thought leadership and
the ZO Datamart and reporting AOL, a Time Warner Company also served as Vice President
marketing programs. Scanlon
tools suite, and focuses on brand- (TWX). He serves on the boards of Business Development and
has a 20-year track record of
specific data strategies, such as of the International Radio and Account Management at IAG
building awareness, valuation,
ZenithOptimedia’s “Live ROI.” Most Television Society (IRTS) and the Research (acquired by Nielsen). At
sales and brand equity for some
recently, Rob served as President American Press Institute (API), and IAG, he oversaw a research team
of the most successful technology
of Strategy for Zenith where he was a long-time member of the that advised senior marketing
companies. He’s taken many
was responsible for developing executive committee and board executives and their agencies on
clients from start-up to market
communication planning of directors of the Interactive the effectiveness of their TV and
leadership and reinvigorated
methods, ensuring planners led Advertising Bureau (IAB). in-theatre marketing efforts and
established technology brands.
their clients and the industry in made recommendations on how to
This includes work with Red Hat,
creating unique and powerful improve their results.
Netezza, Symantec, ServiceNow,
communication strategies.
Hortonworks, Blue Coat,
webMethods (now Software
AG), Imation, LifeLock, ESET
and MicroStrategy. You can follow
him on Twitter @bkscanlon.
4. CH 2 : DATA-DRIVEN MARKETING 31
PART 1 :
INTRODUCTION
THE RISE OF BIG DATA
The world is awash in data. Every ever before, but we’re still trying Data has always been a centerpiece That’s what consumers and data Data, while exploding, is becoming
time a consumer uses a credit to figure out what information of marketing. From decades-old companies are producing and easier to manage, combine and
card, a purchase-history is created. is good and what is bad. What techniques such as consumer storing every year. According to evaluate. Martin Hilbert and
Loyalty programs grant companies information is truly effective at research surveys, product McKinsey, “The increasing volume Priscila López in Science magazine
and retailers access to consumers’ increasing our ROI, and what is purchaser panels and customer and detail of information captured analyzed global storage and
purchase patterns and preferences. just more “white noise?” We’re relationship marketing to newer, by enterprises, together with the computing capacity, and found that
Every mouse click leaves a trail only now beginning to understand financial-market approaches rise of multimedia, social media, not only is our ability to accumulate
to follow. We know more about what works and what doesn’t. But like time-series modeling, chief and the Internet of Things will fuel and store data growing, but storage
consumers than ever before, and even as we do, more information marketing officers have always exponential growth in data for the capacity has become almost
they know more about us. is presented to us, sometimes looked to data and analytics to foreseeable future.” 2 exclusively digital (as opposed
reinforcing our marketing drive their decision-making. to analog). 3
All of this data can be empowering, programs. Sometimes, it requires In the modern age, however, two
or it can be daunting. More them to change completely, on a critical changes are transforming
information means greater insights, moment’s notice. The need to be the marketing landscape in ways
DATA STORAGE HAS GROWN SIGNIFICANTLY, SHIFTING MARKEDLY FROM
smarter thinking and better nimble, agile and flexible has never we could not have imagined. First,
ANALOG TO DIGITAL AFTER 2000
decisions all around. But with been greater. there has been a huge increase of
Global installed, optimally compressed, storage
new data coming in every day, we available data to track consumer
can become subject to “analysis We have reached a point where attitudes and behaviors in real
Overall Detail
paralysis,” delaying decisions and the art of marketing and the time. Second, we as marketers Exabytes % : exabytes
programs until we get the most science of data are completely have increased our ability to blend
3 10 54 295
information possible, to be sure intertwined, and are ever more and filter that mass of data into 300 100%=
Digital 1 3
we’re making the right decisions. inseparable. It’s time to learn how actionable insights that shape
The key is for us to recognize that to harness the ever-increasing marketing campaigns at the 250 25
data is not information, nor is streams of information (mobile strategic and the tactical level.
200
information the same as insights. and social alone are creating a
Instead, we have to process data large number of data sources) The explosion in consumer data
150 94
to reveal insights on a timely basis and use them to our benefit—just is massive and exponential. Analog 99 97
that can be actionable. as consumers are doing with According to the McKinsey Global 100 75
the information they get. Rather Institute, the volume of consumer
Fifteen years into the Information than making our marketing data- information generated in a year 50
Age, we’re just figuring out what dependent, we need to make it has exceeded six exabytes. That
6
it all means. We have access to Data-Driven. number – one that we cannot even 0
more data and information than really define – would fill more than 1986 1993 2000 2007 1986 1993 2000 2007
60,000 U.S. Libraries of Congress. NOTE: Numbers may not sum due to rounding.
It’s more than every word spoken SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate,
and compute information.” Science, 2011
by humans if they were to be
digitized as text. 1
1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition,
and productivity,” June 2011
2 Ibid.
3 Hilbert and Lopez, “The world’s technological capacity to store, communicate,
and compute information,” Science, 2011
5. CH 2 : DATA-DRIVEN MARKETING 33
SIDEBAR :
ARE YOU PREPARED?
We all know the era of Big Data is issues that could be resolved
upon us. Yet, many in the industry with the help of Big Data and
are still unprepared. A recent IBM prioritize them. The most critical
CMO survey showed that – while and beneficial step that any brand
CMOs understand in no uncertain leader can take, in order to start
This change in capacity and the brands we market to them.
terms how critical Big Data is to the process of harnessing the
digitization of data storage has We also have the potential to
their future success – many admit power and insights of Big Data, is
huge implications. We now have manipulate, match and manage
they have yet to find the correct to establish a data strategy and a
a window into consumers’ lives that mass of data in almost
techniques and management set of key performance indicators
and almost every aspect of their limitless ways. (See Sidebar:
approaches. Forrester, meanwhile, (KPIs) that outline in detail the
relationship that they build with Are you prepared?)
surveyed business decision- direction of insights that are
makers about what they viewed needed from data analysis in order
as their most critical challenge to increase marketing ROI.
PERCENT OF CMOS REPORTING UNDERPREPAREDNESS in putting Big Data to use
effectively. The responses were The systems and data priorities
50%
all over the map, and the fact that that are established will clearly
Data explosion 71% there was little consensus shows be significantly different if the
that each organization needs to organization’s top Big Data priority
Social media 68%
set its own priorities about how to is about the ability of the internal
Growth of channel and device choices 65% tackle Big Data. organization to share data in real
time as opposed to a primary
Shifting consumer demographics 63%
However, no task is more essential challenge of not getting access to
Financial constraints 59% than to examine all of the potential real-time data at all.
Decreasing brand by loyalty 57%
Growth market opportunities 56%
TABLE 2
ROI accountability 56% Biggest challenges to use of “big data” for marketing
Consumer collaboration and influence 56%
We have too little or no
Privacy considerations 55% customer/consumer data 29%
Global outsourcing 54%
Our data is collected too infrequently
or is not real-time enough 39%
Regulatory considerations 50%
Corporate transparency 47%
The lack of sharing data across our organization is
an obstacle to measuring the ROI of our marketing 51%
We are not able to link our data together
at the level of individual customers 42%
We aren’t using our data to effectively
personalize our marketing communications 45%
0 10 20 30 40 50 60
6. CH 2 : DATA-DRIVEN MARKETING 35
PART 2 :
THE LIVE DATA STREAM
All of this data is being set up TV for a multitude of purposes.
for another revolution: the Live Some use them to multitask,
SOCIAL NETWORK USERS AND SMARTPHONE OWNERS LEAD THE WAY IN
Data Stream. With powerful PENETRATION IN NORTH AMERICA “CONNECTED VIEWING” EXPERIENCES conducting online searches for
portable devices and always- millions, % of internet users % in each group who have used their phone in the preceding 30 days to... information. Others post to their
on connections, consumers are and % of population social media feeds. Still others
constantly feeding a stream of 189.2 SMARTPHONE OTHER CELL use their phones to participate
181.9
data—in real time—about brand 174.7 OWNERS (N=904) OWNERS (N=1050) in promotions they’ve seen
163.9
attitudes, feelings and behaviors. Keep yourself occupied during commercials advertised on television, or
58% 17%
or breaks in what you were watching through their secondary online
This data, can be harnessed and 65.8% 66.9% 68.0% Check whether something heard
37 6
browsing. Each one of these data
63.6% was true or not
turned into actionable insights. points tells us something different
51.4% 52.9%
47.2% 49.8% Visit a website mentioned on TV 35 3 about the effectiveness not only
Thanks to smartphones, tablets Exchange text messages with someone
32 13
of the message, but of the channel
watching the program
and other connections, consumers and attitude of the consumer to
have turned to digital channels See what others were saying online about a 20 2 the brand messaging they’re being
program you were watching
to supplement their knowledge, exposed to at that very moment.
2011 2012 2013 2014 Post your own comments online about a
behavior and attitudes to brands. program you were watching
19 2
Social network users
This has dramatically increased the Recommendation engines are a
% of internet users Vote for a reality show contestant 9 4
volume of real-time or live data % of population
perfect example of how brands
that brand owners and agencies have structurally adjusted to the
can access to illuminate up-to- NOTE: Internet users who use a social benefits of Big Data analytics to
the-minute changes in brand network site via any device at least once per great advantage. Amazon (and
month; includes Canada and the US
metrics. But those metrics aren’t SOURCE: eMarketer, Feb 2012 most other e-retailers) have
coming to us in the easily defined developed effective real-time
and “traditional” formats of past recommendation engines based
consumer behavior. Rather, on analysis of massive amounts of
they are coming in the forms will grow to cover more than 50 real-time data to engage shoppers
consumers have already embraced, percent of the North American without resorting to traditional
like social media. population through 2014.4 Every mass, untargeted pricing and
“Like” of a brand on Facebook, discounting. The ability to create
Even more is coming. According and every brand-name hashtag personalized, helpful suggestions
to an eMarketer forecast, social on Twitter is another piece of for consumers has had a significant
network growth, although slowing, data that can be used to inform Facebook and other social a constant companion for impact of customer satisfaction
marketing, but each comes with its media are not the only sources consumers, and are used during data, and there is clear evidence
own set of rules and parameters. of live data, and they are not their traditional media experiences. that satisfied customers are more
the only cause of the explosion. Pew Research shows that 74 likely to purchase, be loyal and to
Smartphones have become percent of smartphone owners recommend a brand.5
use their device while watching
4 eMarketer, “Social Network Users and Penetration in North America, 2011-2014,” February 2012
5 Foresee 2010 Retail Satisfaction Index
7. CH 2 : DATA-DRIVEN MARKETING 37
PART 3 :
FROM AUTOMATED AND TACTICAL TO PREDICTIVE
Learning how to harness and of a Predictive Company (as 2. Big Data accelerates decision-
manage this data can yield opposed to a Tactical, Automated making. Customer churn, for
SOPHISTICATION LEVEL* OF THEIR CURRENT PERSONALIZATION EFFORTS
ACCORDING TO US RETAILERS, Q3 2011 huge returns. Nucleus Research or Reactive one.) example, can be addressed in real
% of respondents found organizations can earn an time, rather than only fixing issues
incremental ROI of 241 percent Nucleus Research identified four that contribute to churn long
by using Big Data capabilities to critical areas of benefit to big data after a customer has left, live-data
examine large and complex data analytics that organizations can analytics can uncover and suggest
7-10
13%
sets. These returns are the result of realize from the use of Big Data: solutions for better customer
improved business processes and retention as they emerge.
decisions through optimizing the 1. Big Data solutions that
1-3 increased types of data available encompass vast data sets enable 3. Combining external data with
54% 4-6 solutions that link all aspects of internal data adds significant
and the ability to monitor the
33%
factors that impact a company the business together. value to internal data. Adding
most, such as customer sentiment, Retailers can link insights about geographic, meteorological or
by scouring large external data their loyalty program customers other external datasets creates
sources such as social media sites. with in-store behavior and much more sensitive analytics.
These abilities are the hallmarks social behavior.
4. Big Data analytics is critical
NOTE: *on a scale of 1-10 where 10 = “very sophisticated” and 1 = “not at all sophisticated”
SOURCE: the e-tailing group, “Prioritizing Personalization For Growth,” Nov 11, 2011
to successful online sentiment
monitoring. The ability to define
1400% meaningful results from “noise” is
not really possible without new Big
The data that would allow brands To manage this ever-increasing, 1200% Data techniques.
to personalize the experience in live-stream of Big Data,
RETURN OF INVESTMENT
real time for consumers is already organizations must set themselves 1000% Yes, these changes are difficult.
available, and some brands are up internally to respond to the And it may require years of
finding ways to put it to work. insights available. Brands must 800% “unthinking” the practices of the
That said, brands are still a long adjust their internal processes past. But marketers who can
way from being able to deliver and marketing plans in ways that 600% make the attitudinal and structural
on that opportunity. The e-tailing will enable them to immediately modifications to realize the full
group surveyed 131 mostly large respond to consumers’ actions as 400% benefits of Big Data will reap
Predictive significant rewards. Moving from
and mid-sized Web merchants in information is received. Consumers
Strategic
Q3 2011, and found that more than have embraced social media and 200% a tactical/reporting position to a
Tactical
half gave themselves poor marks in other live interaction opportunities strategic and predictive approach
Automated
their personalization efforts. with brands. It is incumbent on 0% will generate a measurable
Automated Tactical Strategic Predictive
the brands to respond in-kind with increase in marketing ROI, and a
immediate, personalized responses. significant lift in business. (See
Sidebar: Moneyball)
8. CH 2 : DATA-DRIVEN MARKETING 39
SIDEBAR : MARKETERS
MUST PLAY ‘MONEYBALL’
The popular book and film As media become more digital— percent of the target audience,
"Moneyball” illustrated how the and, as a result, more targetable, and a full 30 percent of the
smart use of data and statistics measurable and accountable— desired target receives none. The
transformed a 150-year-old sports these analytics will be crucial. culprit? Audience fragmentation.
1ST
pastime and business. The same is 3RD PARTY Even television, which has long Fifteen years ago, that 80 percent
DATA
happening with advertising. PARTY resisted change is changing fast was spread to more than 60
DATA
For years, baseball had been as more of it is delivered through percent of the target, and the
managed according to gut instinct digital set-top boxes, over Internet size of the unreached target was
and near-mythical truisms. In the PLANNING protocol networks or on the tens very small. Now, data analysis is
DATA
early 21st century, one outlier, Bille of millions of new smart, Internet- being used to determine the exact
Beane, used data, statistics and connected TVs and companion makeup of a show's audience and
financial market-like techniques devices that are shipping around to perfectly measure and manage
to bring success to a payroll- the world this year. Not only will the reach and frequency of TV
challenged team. Beane's use of these new TVs connect directly ad campaigns with online-like
sophisticated data analysis to to the Internet, but they will run frequency capping.
identify which player statistics Web-based apps, link new cloud-
really mattered—a player's on-base not just about online messaging based streaming services and Finding elusive audiences.
DATABASE
percentage rather than batting exposure and real-time response. also produce a treasure-trove of Trying to find young males
MANAGEMENT
average, for example—gave Now, there is real-time behavioral PLATFORM data and direct consumer-viewing outside of sports content?
him a real advantage in finding data on our customers, allowing us measurements, which will open up Hispanic audiences within
players who were undervalued to figure out their level of interest TV advertising to Billy Beane-like English-language content? Or
by his competition. These days, in our brands, their loyalty and transformation. light TV viewers you can't reach
potential for incremental cross- These Database Management efficiently with broadcast-centric
the research and insights Beane
sales. Matching first-party data Platforms, where we collect and This does not mean that the prime-time campaigns? Data will
used have become commonplace
from brand customers with third- analyze the Big Data that comes “art” of the media industry will find them. Marketers will discover
among his competitors and all of
party data from other online and from brand customers as well be forever trumped by “science.” gold using data to aggregate
Major League Baseball.
offline sources, can give marketers as other online behavior, offer However, decisions about which valuable audiences from
and their agencies unprecedented the potential to make strategic media to buy will no longer be unconventional places.
Marketers must apply the same
insights into the relationship and tactical marketing decisions driven by history, comfort and
game-changing insights to the
of media and messaging at the based on a mass of statistical relationships. Data and predictive Creative testing. With robust
information available to them. For
campaign and individual spot data and analysis that has never science will drive more and more cross-channel data, you can now
marketers, the data explosion is
basis to specific brand customers been available before. To stretch media decisions. And the results know which viewers abandon your
and their actions. an analogy, we can draft new will solve many of the problems ads and which viewed them. Not
target audiences, never before plaguing our industry. Such as: only will we learn which audiences
considered based upon the actually like our ads, but we'll be
behaviors we have seen from Wasted frequency. In most mass- able to test and optimize creative
the data analytics on current awareness TV ad campaigns in the
customers and potentials. US today, 80 percent of the spots
end up being delivered to only 35
9. CH 2 : DATA-DRIVEN MARKETING 41
units in live environments. Think of into ad campaign deals. Imagine Becoming a Predictive Company,
the improved efficiency if we can delivering your Gross Ratings however, will require changes
ANALYTICS AND DATA SCIENCE JOB GROWTH
get audiences to stick around and Points with set-top box data- in the ways many do business,
watch ads because the data tells based guarantees of specific both at the macro and day-to- 0.1
ANALYTICS AND DATA SCIENCE JOB STARTERS
(AS A PERCENTAGE OF ALL JOB STARTERS)
us which ads will stick with them. audience compositions—such as day levels. In a world soon awash
frequent moviegoers who like in Big Data and opportunities to
0.09
Secondary measurement and dramas, or Coca-Cola brand fans— use it, one thing is clear: there
promises. Nielsen, comScore or guarantees of attributed sales are not enough people in today’s
and panel ratings aren't going by linking household-level viewing marketing organizations with 0.08
away. Macro audience ratings data with actual purchases. the level of experience in using
will be with us for a long time. Big Data to make companies
0.07
However, those measurements We’ve moved into the “Moneyball” successful in the future. And many
will be supplemented with micro- era. Are you ready? of these organizations do not
measures of exact audience have the right tools and processes 0.06
patterns, which will be baked needed to survive—much less
thrive—under the coming tidal 0.05
wave of information.
In the Big Data-driven world, 0.04
marketing organizations need to
infuse themselves with experts. 0.03
Mathematicians, scientists,
statisticians, software and
hardware engineers. All will be 0.02
important to companies looking
to harvest and harness Big Data 0.01
and turn it into useful, actionable
information. It’s a page from
0
the playbook of today’s fastest-
growing digital companies. Look 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
at the hiring practices of Google,
Amazon, Apple, Microsoft,
Facebook and Twitter. Employees
TECH-SAVVY LEADERSHIP. HARD SCIENCE. Many marketing-
in those companies are different
Not only are the most successful related companies, particularly
from those hired by traditional
digital companies well-stocked in media, still rely on qualitative
marketing and media companies.
with engineers, scientists and tech- “social” science in much of their
They possess:
centric product managers, but decision-making, not the kind
technology is the primary skill set of quantitative sciences needed
of their leaders and their workers. to exploit Big Data. Yet, hard
They drive the businesses, the numbers are the new reality of
products and the core strategies.
10. CH 2 : DATA-DRIVEN MARKETING 43
the advertising and marketing However, hiring the best is only millions upon millions of dollars. the domain of the research
industry. Marketers need part of the equation. (And a In many cases, enterprises department is now available to
cognitive scientists, statisticians, very difficult piece at that. There can build or buy analytic data managers at all levels of marketing
mathematicians and physicists. is a limited pool of emerging warehouses that are 100 times organizations. (See Side Bar:
talent with Big Data skills, and bigger than those available 10 Trust and Security)
DIVERSITY. In fast-growing digital, competition for the best is years ago - for 1/100 the cost.
data-driven companies, diversity intense—much like the competition Investing in new employees,
is a competitive advantage and a we’ve seen for computer scientists This means companies with data technologies and processes to
business imperative. over the past 10-15 years. It’s a technologies that are only five better serve Big Data is not an
certainty that demand for data years old will find themselves option. Companies looking for
IMPATIENCE. Companies like scientists will outstrip supply for at significant disadvantages competitive advantages will target
Amazon, Google and Apple years to come.) Companies must in both capabilities and cost these three areas for strategic,
have relatively flat organizational also adjust, adapt and improve structures to competitors with competitive and market share
cultures, and their employees their internal processes and new technology. Investments in growth. Those that do not will be
have no time or patience for the procedures to ensure they’re set new data technology on a regular left behind.
kind of long, escalator-like ride up to capitalize on the information basis will be critical for marketing
over decades to reach leadership and insights created by these enterprises to remain competitive. The era of Big Data is upon
positions that exist in many non- streams of Big Data. Among the us. Thanks to the tools of the
digital companies. They know what things they need to keep in mind: DATA ANALYTICS IS BECOMING Connection Engine (smartphones,
they want and they want it now. MORE BROADLY ACCESSIBLE tablets and super-fast, always-
BIG DATA TECHNOLOGY IS ACROSS ORGANIZATIONS. on connections), consumers are
VERSATILITY. In traditional GETTING BIGGER, BETTER, Not only can these new data giving marketers a wealth of
marketing organizations, many folks FASTER AND CHEAPER. systems store massive amounts actionable information. It’s up to
are “bucketed” into roles and silos Innovation in analytic tools, of data, but they can also manage marketers to turn that information
during early stages of their careers systems and platforms has unstructured data, giving users into valuable insights and
and find success through focus exploded over the past few far more flexibility in how they programs that reward consumers
and unique expertise. Invariably, years, particularly in the open- organize, manage and query the based on their needs, information
some of the strongest talents in source community. Open-source data. This is helping companies and realities. The data is coming
emerging, digital and data-driven data management technologies make data much more accessible in real time and marketers must
companies have degrees that span like Hadoop and pay-as-you- and available across organizations. react with the same spontaneity.
both science and arts, work better go cloud-based data services Whether it is trying to understand Information moves at the speed of
horizontally than vertically, and take like Amazon Web Services and purchase behaviors of target light; marketing programs will have
pride in constantly changing gears Mongo Database are replacing customers or sales attribution to move just as quickly.
in their careers. comparable data management to social media, what was once
systems from companies like IBM,
Oracle and Teradata that cost
11. CH 2 : DATA-DRIVEN MARKETING 45
SIDEBAR : BIG DATA:
BIG SECURITY NEEDS
Fifty-five percent of CMOs feel social, mobile and financial
unprepared for the privacy ecosystems safe from security
considerations in the exploding breaches or organized hacks.
digital world (Source: 2011 IBM
CMO Study). Every state has different levels
of breach notification and action.
In March of 2012, the Federal Trade With nationwide customer
Commission (FTC) published bases, resolution is messy, time-
“Protecting Consumer Privacy consuming and expensive for
in an Era of Rapid Change,” anyone experiencing a breach.
delivering basic principles And according to research done
that emphasize awareness, by Imation (see image, right), the
transparency and care in dealing strictest states have relatively
with customer or community low bars that trigger mandatory
information. The report mandates notification of consumers, credit
protection at many levels, simple agencies and government entities.
customer-driven options and
transparency and disclosure. Actual or even perceived violations
are a one-way ticket to losing a
“In its guidance and actions, the customer, not to mention fines
Federal Trade Commission (FTC) and potential costs of remediation.
is asking for privacy by design, There is clear expectation that
built from the ground up with brands will be careful with
consumers getting notice and personal information, and errors
choice,” says Gary Kibel, a partner come with a high price. According
in the Digital Media & Privacy to ongoing research from
Practice Group of Davis & Gilbert. PricewaterhouseCoopers LLP,
“If you are a brand, you have to consumers are far more worried
look at the whole process of how about security breaches than
data flows.” privacy, and 61 percent of those
surveyed said they’re “not willing
In addition to stricter privacy to continue to use a company's
guidelines and increased FTC services or products after it
action, another real brand experiences a security [breach].”
threat emerges: the increasing (Source: http://www.pwc.com/us/
complexity of keeping data that en/industry/entertainment-media/
resides and moves across complex assets/pwc-consumer-privacy-
and-information-sharing.pdf)
12. CH 2 : DATA-DRIVEN MARKETING 47
THINGS TO THINK ABOUT
KEY TAKEAWAYS
“CONSUMERS FEEL MORE COMFORTABLE ON THE CES FLOOR
SHARING INFORMATION IF THEY UNDERSTAND
THE BENEFITS TO THEM INDIVIDUALLY OR AS To realize their full potential, The ability to collect and analyze Every new technology will
PART OF A LARGER GROUP” – PWC SURVEY. organizations must be set up massive amounts of data and provide you with access to even
to respond to Big Data insights the application of predictive more consumer information.
in real time. Brands will need science are transforming how How will you access it? How
to adjust their marketing plans marketers and agencies manage will you incorporate it into your
Big Data requires a trust reset and what brands to even pay attention
to immediately respond to media. These insights can help current marketing processes?
close, careful management of data to in the increasing barrage
consumers’ actions as they learn develop strategies and reach new Are you equipped to harvest and
in the new world. But the good of information.
about them. Consumers have potential target audiences with harness that data with personnel
news is that consumers are eager
embraced social and other live- customized messaging, as well as and/or technological systems?
to partner on privacy, and the best According to the 2012 “Trust
interaction opportunities with aid measurement, optimization, What might you need to add to
marketing tackles engagement Factor” study by About.com, 84
brands, and they fully expect attribution and accounting. your internal operations to yield
as a partnership with clear and percent of consumers say “being
brands to respond in-kind the best information from this
agreed-upon benefits for all. trustworthy is a requirement
with immediate, personalized Marketing organizations will data? How will it support and/or
before interacting with a brand
responses. not be able to exploit Big Data work in conjunction with other
Consumers seem to have an or info source.” (Source: http://
without investing in new types of data streams?
insatiable appetite for monetary www.advertiseonabout.com/
It will take considerable change people, technology and processes.
incentives, trend information wp-content/uploads/2012/07/
AboutTheTrustFactor.pdf) for brands to begin to realize the It will be a requirement.
and a desire to be part of
full benefits of Big Data analytics.
something broader. According
But if those hurdles can be In the Big Data world, security and
to PricewaterhouseCoopers In the era of Big Data, trust and
overcome, the benefits are clear trust will become brand currency.
LLP surveys, “80 percent of security will become something as
and significant. Moving from a Strong security and privacy
respondents said they were willing valuable (if not more so) than any
tactical/reporting position to a communication can actually
to share personal information other brand attribute. Consumers
strategic and predictive approach strengthen customer loyalty. Trust
if the company lets them know will be on the lookout for brands
will generate a measurable is good business, and it is (and
upfront how they are going that treat the information they’re
increase in marketing ROI. should be) desired by consumers
to use it.” sharing with respect, rewarding
and the agencies looking to
those that value the information in
protect them.
Meanwhile, brands are becoming trustworthy and secure manners,
their own news organizations, and shunning those that do not.
pushing out data and advice to Consumer trust and security of
their customers and markets. their personal information must
But in an age where information get the same attention as every
saturates, trust is one of the vital other brand attribute.
filters for consumers to decide
