affilinet_Big Data_TactixX_20120327
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Chris Hauth, Director Strategy @ affilinet international, discussed the importance of Big Data for the online marketing world in general and affiliate markting in particular. The attached presentation ...

Chris Hauth, Director Strategy @ affilinet international, discussed the importance of Big Data for the online marketing world in general and affiliate markting in particular. The attached presentation gives a clear statement, why this topic is key for all of us, particularly looking and evaluating the regulatory situation on EU level and their potential impact for our business.

affilinet sees itself at the forefront of this development and will together with its network of publishers and advertisers continue to push for a more intelligent, transparent and customer value generating Big Data strategy!

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    affilinet_Big Data_TactixX_20120327 affilinet_Big Data_TactixX_20120327 Presentation Transcript

    • affilinet …thoughts on: "how big is Big Data?" by…Chris R. Hauth, Director Strategy, affilinet international 03-2012
    • The questions we will address today… What is BIG DATA and how BIG is it? What can it mean for all of us? Why is privacy so important and what we can do about it? Page 2
    • Data is getting bigger and bigger… Worldwide Digital Data Volume(created and stored each year) 90 2015: 7,910 EB 80 70 ExaByte 60 x 61 50 BIG DATA 40 2011: 30 1,800 EB 2005: 20 130 EB 10 - 2000 2002 2004 2006 2008 2010 2012 2014 Note: The data of 2015 estimated by IDC Page 3 Source: 2011 IDC Digital Universe Study (2011/6); MIC "Information Distribution Cencus"
    • How big is your data??? Company size is nolonger a determinant Size DataWarehouse Revenue 2011 (in TB) (in €) VS. Page 4 Source: Data Unser – Wie Kundendaten die Wirtschaft revolutionieren (2012), affilinet
    • What is this thing called "Big Data" actually??? All Data that can be put into an on-line environment… Relational Databases no longer sufficient…Which surpasses our traditional ability to effectively organize, store and manage it… New challenges for Unstructured Data describes any data storage, data that is not in a database… mining, analytics and interpretation… Unstructured data can be textual or non-textual… Page 5 Source: SearchBusinessAnalytics
    • Although Data is massively growing, its mostlyhard to grasp and understand, its unstructured Size and Growth of Data (2010) worldwide Share of structured +40% Data (from 2009) worldwide 5% (as of 2010) Page 6 Source: Big Data – Powering the next Industrial Revolution, Tableau Source: Future Integration Needs: Embracing Complex Data, Aberdeen Group
    • There is no reason why growth of (unstructured)data should decrease in the future! Social media boom The Mobile Revolution Facebook - Active users (04-11) Mobile Data Connections (04-11) 160% CAGR 20% CAGR E-Commerce transactions "Internet of Things" Global eCommerce Sales (04-11) Connected Devices 2015 (excl. PC/Mobile) Industrials 23% CAGR Utilities Retail Security Automotive Travel&Log HealthCare Page 7 Source: Facebook Prospectus 2012, YankeeGroup Topline Data Forecast 2011, JPMorgan eCommerce Forecast
    • Selected acquisitions from eBay hint at a bigdata future across all channels Example Magento FigCard ZVent StubHub Positronic CriticalPath Appchee Where Inc Hunch TicketTech Milo2001/2 2007 – 2008 2009 – 2010 2011 – Q1 2012 Stumble Upon RedLaser Zong BillSafe Paypal WHI Solutions GSI Hadoop (10-20 PB) TerraData (10-20 PB) Size of bubble = size of acquisition Product Data Shop Enhancements Mobile Payment Social Page 8 Source: dailydealmedia, alacrastore, wikipedia, ebay
    • But Size doesnt necessarily matter: Big Data isa complex ecosystem, navigate it wisely - Enrichment Profitability - Normalization - Categorization - New Storage - Biz Intelligence - Vizualization ( - ) Amount of Data Quality ( - ) Quality ( - ) Regulation Amount of Data Page 9 Source: affilinet
    • Customer Journey – This is what we originallythought the journey would look like…Idealized Customer Journey Need recognition 1 (content sites, eMailers) Idealized customer journey from an affiliate network perspective 2 Information Search (review sites) However consumers might complete a 3 Evaluation purchase at all stages or linger longer And indeed reality looks 4 Purchase different… Page 10 Source: affilinet
    • Biz Intelligence – Horses for Courses – Differentmodel-mix for different needsOrders per Publisher type per Industry Which publisher modelFinance works best is dependend on the industry segmentTelcoRetail Our advertiser KAMs or you can steer and influence this status quo, but we need toTravel provide the tools CashBack Coupon Media Portal/ Topic Sites Page 11 Communities Source: affilinet (1 Month, Germany and affilinet only)
    • Biz Intelligence – Couponing and Cash-Back not adanger to traditional publisher modelsPre-Order Touchpoints per Publisher Model Topic websites beatTopic topic and mediaMedia Media and Couponing mainly beat similar modelsCoupon Only Cashback mostlyCash- beats Couponing, andBack not other Cashbackers CashBack Coupon Media Portal/ Price Comp Topic Sites Page 12 Communities Source: affilinet (1 Month, Germany and affilinet only)
    • Enrichment – enrich and link your Big Data to increase the quality and make it valuable Fit predictors Example Evaluations Shares Weather Social Recommendations Likes Product Data Holidays Environmental Info OpinionsGeo-locations Special Promotions Connect to other players of the Value Chain Page 13 Source: affilinet
    • Vizualization – The right visualization of Data isthe key for meaningful interpretation Page 14 Source: LinkedIn Maps, 2012
    • Too often we see big data as a way to improveour productivity, but thats just part of the story What are you using Big Data for???Increase Operational Efficiency 51% No wonder that government gets Inform Strategic Direction 36% it all wrong and Better Customer Service 27% tries to curb Data AnalyticsIdentify New Products/Services 24%Enhance Customer Experience 20% Identify New Markets 11% Big Data should be Faster Go-To-Market 8% about better Comply with Regulations 6% services for our customers FIRST Other 3% Page 15 Source: The Economist - Harnessing a game changing asset (2011)
    • Privacy and end-user trust perception is key:BUT privacy perception differs substantially What is privacy? (EU 27) The good news is: The information Visited Websites 25% our industry is interested in is not Taste & Opinions 27% considered private by the end- customer Photos of me 48% Mobile Number 63%Medical Information 74% BUT: Thats just one part of the Financial Info 75% picture… Page 16 Source: EU -SPECIAL EUROBAROMETER 359, 2011
    • The start and the end of big data is the complexconsumer, dont forget that…! Your Opinion of Personalized Search? (U.S.) Total 65% 29% Obviously we BAD Good other communicated something wrong! >50 70% 24%Age <29 56% 38%High Salary 75% 19% Big Data should be >75k about privacy andLow Salary 45% 49% protecting <30k individual needs Page 17 Source: PEW Institute – PIP Serach Engine Use 2012, U.S.
    • Regulation – The New EU Data ProtectionRegulation is the final point of truth for Big DataBasic Principles of Draft from EU Commission A General Data Protection Regulation (Verordnung, keine Richtline): direct applicability in all EU member states Applicable for all "personal data", with a significant broadening of the term "personal" (e.g. targeting) Transparency and Controll as two guiding principles Current timeplan with broad implications towards role of end-user suggest final date for implementation in 2016 Significant increase of fines (now related to all international revenue, 2%) However political Applicable for all companies that do business in the necessities could EU, also Non-EU companies significantly speed this No changes are currently induced regarding "E- up!!! Privacy" Directive (Richtlinie) Page 18 Source: EU, affilinet
    • Regulation – What does it mean now for you???Document, Document, Document!!!The implications for your daily work Non-EU based players will need to comply to the new rules Data protection and compliance become more important as not only individuals can sue you (Verbandsklagerecht) Growing Importance and necessity of well documented "Customer Consent" Currently the draft means significant More and easier accessible user rights, will mean for strains on your you to offer customers access and controll (e.g. operations, increase in "Right to be forgotten", personal data portability) bureocracy and in certain Profiling will be harder as the definition of "personal cases the death of whole data" is significantly broadened business models Page 19 Source: EU, affilinet
    • What are the key take aways… Big Data is the key decision point for our industry and we will need to…. Put the end-customers on Prio 1 will be decisive for the industry Proactively work with government and interest groups to define the customer way forward Intelligently collaborate using the non-personal data we have to improve customer experience Page 20
    • … thanks for time! Enjoy the rest of your day @ Tactixx! affilinet GmbH T. +49 89 435710 170 Chris R. Hauth M. +49 151 Jospeh-Wild-Str. 20 E.m. chauth@affili.net 81829 München www.affili.net