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The New Age of Digital Marketing
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The New Age of Digital Marketing

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Today’s marketers are working feverishly to capitalize on the potential of highly insightful, yet unstructured, information being generated online. This coupled with the demands of real-time, ...

Today’s marketers are working feverishly to capitalize on the potential of highly insightful, yet unstructured, information being generated online. This coupled with the demands of real-time, rules-driven, audience-centered marketing represents a fundamental paradigm shift in how marketing is done. While the term “big data” may be fairly new, the concept is familiar to data-driven marketers who for years have been trying to run complex analytics across a deluge of structured and unstructured data flowing in from point-of-sale systems, web sites, social media, email campaigns, newsletters and many other online and offline sources.

A new study produced by strategic consulting firm Winterberry Group in conjunction with the Interactive Advertising Bureau (IAB) and sponsored by IBM, reveals top investment priorities, high impact data use cases and barriers to adoption pertaining to big data in marketing and digital media.

During this one hour webinar, we will present some of the key findings from our study which had contributions from over 175 advertising and marketing thought leaders. You will learn about the high priority use cases for today’s digital marketers, the underlying big data challenges and how some of the leaders are gearing up to address them with specific solutions.

Audience Optimization
Channel Optimization
Advertising Yield Optimization
Content Optimization & Ad Targeting

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The New Age of Digital Marketing The New Age of Digital Marketing Presentation Transcript

  • The New Age of Digital Marketing:How Big Data and Advanced AnalyticsAre Reshaping the Marketing World Jonathan Margulies Krishnan Parasuraman Managing Director CTO, Digital Media Netezza and Big Data
  • Winterberry Group: Helping Advertising, Marketing, Media andInformation Companies Grow Value Strategic Consulting • Corporate Strategy Development • Market Intelligence • Marketing Process Optimization • M&A Transaction Diligence Support • Investment Banking Services, through
  • Our AgendaWhat inspired theresearch?What role is data playingin digital advertisingtoday?How should we bethinking about our “dataplatform” for the future?
  • In the Beginning, There Were Subscriber Files… H. Catalogus(0-~1980 A.D.)
  • … Which Begat Demographic “Selects,” Data Cards and the First TrueCommercial Data Models… NAME ADDRESS PHONE GENDER AGE INCOME H. Catalogus H. Mailinglistus (-~1980 A.D.) (~1980s)
  • … Which Begat Modeling, Cluster Segmentation, CooperativeDatabases and—With the Arrival of the Internet—E-mail Data… H. Catalogus H. Mailinglistus (-~1980 A.D.) (~1980s)
  • … Which, In Concert with the Growth of “CRM,” Gave Rise toSophisticated Database Management, CDI and MDM Infrastructures…“Customer File”: Contact Persistent IdentifiersInfo, CRM, Demographics “Prospect File”: Demographics, Credit Scores Interactions Logs Transactional / Loyalty “Single Source of the Records Truth” Public Records Self-Reported “Intent” Data Mr. John Q. Customer One Response Rate Way H. Analyticus Boston, MA 01234 (~1990-2000s)
  • But “Evolution” Isn’t Always Painless; The Emergence of DigitalChannels Has Brought With It a Deluge of New Data Sources Direct Mail Display Advertising Call Centers Search Catalogs Retail Transactions Social Media Print Publications Mobile Broadcast Outlets Email Tablets
  • And Those Various Channels Generate—and Rely Upon—a Range ofInformation Types Transactional added from Psychographic and behavioral purchase records, cooperative compiled from databases surveys, analytical models Offline Social compiled from Providers social Geo- Social Sites / sites, blogs, sharing Demographic Offline Online sites, compiled from Compilers Providers ?publishers, data Online Data Types:bases and other • Registrations third parties • Cookies (Flash) / browsing activities • Social networks Portals / Publish • Online purchase data Online ers • In-market purchase intent Compilers Artwork Source: David Harbaugh, Harvard Business Review
  • … And So “Traditional” Database Infrastructures Are Being Asked to Support Vast New Streams of Unstructured Information ? 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)
  • But The Integration of “Traditional” and “Digital” Data Poses a Set ofUnique Challenges, Owing To Discrepancies Between… Known Names/Addresses… “Batch” Processing… … and Anonymous IP Addresses … and Real-Time Deployment Campaign-Driven Execution… Single-Channel Focus… … and Continuous Targeting … and Integrated Marketing
  • Today, The “Use Cases” for Marketing Data Differ Substantially AcrossAddressable Media Online Display Advertising • Advertiser: Creative/offer optimization, real-time media buying, click fraud analysis/ad verification, search portfolio optimization, site optimization • Publisher: Yield optimization, inventory forecasting, ad sales analysis, content/offer optimization, search optimization, site optimization Email • Triggered messaging (via CRM/loyalty platforms) • Target segmentation and message management Direct Mail • Cluster segmentation and offer management • Targeted messaging and variable-content print
  • Our AgendaWhat inspired theresearch?What role is data playingin digital advertisingtoday?How should we bethinking about our “dataplatform” for the future?
  • Our Panel: Senior Thought Leaders Across the Data Ecosystem “Which Best Describes Your Job Role / Function?”N=176Source: Winterberry Group survey
  • “To What Extent Are the Following Use Cases Focal Points of Your CURRENT Data-Driven Marketing Activity?”Source: Winterberry Group survey Not a focus of our A significant focus of our current data utilization current data utilization
  • “To What Extent Do You Believe The Following Use Cases Will Be Focal Points of Your FUTURE Data-Driven Marketing Activity?” Not likely to be a focus of our Likely to be a significant focus ofSource: Winterberry Group survey future data utilization our future data utilization
  • Use Case: Audience OptimizationIdentifying customers and likely Fundamental Effectiveness: Identifying customersprospects through the integration of Advertising and likely prospects through therich (though disparate) data sources; Benefit integration of first- and third-party datamanaging cross-channel marketing sourcesexecution with the goal of engagingthose audiences strategically—and in Maturity Level Low: Despite technology advances,accordance with consumers’ preferred uncertainty around the optimaladvertising media. approach to structured integration of data Core E-commerce Marketers, Digital Beneficiaries Advertisers, Lead Generation Portals, Publishers (for traffic acquisition) Long-Term High: The ability to define high- Potential potential audiences and facilitate multichannel communication represents a fundamentally new way of marketing
  • Use Case: Channel Optimization Fundamental Effectiveness/ Efficiency: Enabling Advertising “right message, at the right time, viaEnabling “right message, at the right Benefit the right media” targeting; expandingtime, via the right media” targeting;expanding the role of consumers in the role of consumers in choosingchoosing optimal/preferred optimal/preferred communicationscommunications media. media Maturity Level Low: Traditional marketing efforts are channel-specific; “channel agnostic” internal alignment that most marketers have not yet undertaken Core E-commerce Marketers, Digital Beneficiaries Advertisers, Lead Generation Portals, Publishers (for traffic acquisition) Long-Term High: Media-agnostic communication Potential strategies will enhance consumer engagement (through dialogue and purchase behavior)
  • Use Case: Advertising Yield Optimization Fundamental Efficiency: Maximizing the value of Advertising available advertising inventory byMaximizing the value of available Benefit identifying and “selling” high-valueadvertising inventory by identifyingand “selling” high-value audiences audiences across individual publisheracross individual publisher properties properties and delivery mediaand delivery media. Maturity Level Low: Though technological advances are rapidly allowing audiences to be “sold” across distinct online media platforms, the use case demands true cross-channel yield optimization Core Publishers Beneficiaries Long-Term High: For a publisher community Potential struggling to effectively monetize content, the identification and optimization of audience-centric inventory has the potential to deliver substantial revenue opportunities
  • Use Case: Targeted Media Buying Fundamental Efficiency/Effectiveness: Enabling the Advertising economical, value-oriented purchase ofEnabling the economical, value- Benefit advertising media; delivering targetedoriented purchase of advertisingmedia; delivering targeted messages messages to audiences across a diverse,to audiences across a actionable range of channelsdiverse, actionable range of channels. Maturity Level Intermediate: “Real-time bidding” (RTB) tools have matured substantially over the past few years, and are in common use by enterprise marketers across verticals Core Marketers (via Demand-Side Platforms), Beneficiaries Digital Agencies/Trading Desks Long-Term High: Meaningful media-buying Potential efficiencies are already accruing to sophisticated users; coordinated use of these applications and the targeted messaging/offer tools will deepen value
  • “To What Extent is Your Company (Or Your Clients) Realizing Value From the Following Data Sources?“Source: Winterberry Group survey We (or our clients) are realizing no We (or our clients) are realizing value from these data sources significant from these data sources
  • “To What Extent Do You See the Following Attributes Driving the Underlying Usefulness of a Marketing Dataset?”Source: Winterberry Group survey Not at all important in driving Critically important in driving the value of a data set the value of a data set
  • “To What Extent Do You Believe Each of the Following Are Inhibiting Interest/Investment in Marketing Data?”Source: Winterberry Group survey Not inhibiting interest / Substantially inhibiting interest / investment in marketing data investment in marketing data
  • The Complexity of Today’s Advertising and Marketing Programs HasDriven Many to Re-Examine their Internal Operating Silos What’s at stake? Holistic Marketing • Data Process Management • Strategic Resources/Authority • Creative Assets Effective People • Investment Capital • Knowledge/Expertise Management Brand Mktg. Digital Direct Mktg. LoBs Sales Fin. Int’l Mktg. IT
  • Our AgendaWhat inspired theresearch?What role is data playingin digital advertisingtoday?How should we bethinking about our “dataplatform” for the future?
  • Foundational Capability: The Big Data Platform Impressions Audience Optimization Cookies Online Registrations Purchase Transactions In-Market Intent Influence Channel Optimization Sentiments BIG DATA Social Followers Recommendations Likes PLATFORM Ad Yield Psychographic surveys Optimization Geo-Demographic 3rd Party Segments Offline Transactions Responses Targeted Media Buying
  • What should be the requirements for your Big Data Platform ? Impressions Audience Optimization Cookies Online Registrations Purchase Transactions In-Market Intent Influence Channel Optimization Sentiments ? Social Followers Recommendations Likes Ad Yield Psychographic surveys Optimization Geo-Demographic 3rd Party Segments Offline Transactions Responses Targeted Media Buying
  • The Big Data Platform Requirements Analyze Extreme Volumes of Data Impressions Online, Offline, Social, Behavior, First Party & Cookies Third Party across multiple channels Online Registrations Purchase Transactions Analyze Wide Variety of Data In-Market Intent Structured – POS, 3rd Party, Transactions Unstructured – Social, Video, Blogs Influence Semi-Structured – Cookies, Impressions Sentiments BIG DATASocial Followers Analyze Data in Real Time Recommendations Likes PLATFORM Product Recommendations, Real Time offers, Targeted Ads in Real Time Psychographic surveys Geo-Demographic Discover & Experiment3rd Party Segments Ad-hoc analytics, data discovery & experimentation Offline Transactions Responses Governance Enforce data structure, integrity and control to ensure consistency
  • IBM’s Big Data Platform Impressions Netezza Cookies • Extreme Performance Online Registrations • In-Database Analytics Purchase Transactions In-Market Intent • Scalable Appliance Influence Sentiments Streams BIG DATASocial Followers • Act on Data “In-Motion” Recommendations Likes PLATFORM • Real time analytics • Alerts/Actions Psychographic surveys Geo-Demographic3rd Party Segments Offline Transactions Big Insights Responses • Unstructured Data • Complex Analytics
  • IBM’s Big Data Platform Delivers Results Impressions 1 Single view of customer across channels Cookies Online Registrations Purchase Transactions In-Market Intent Influence 2 Increased Targeting Precision SentimentsSocial Followers Recommendations Likes 3 Improved Relevance Psychographic surveys Geo-Demographic3rd Party Segments BIG DATA Offline Transactions Responses PLATFORM 4 Higher campaign profitability
  • IBM’s Big Data Platform Delivers Results 1 Impressions Increased customer retention equating to Cookies 20% higher revenues; 5-7x more campaigns Online Registrations executed per week Purchase Transactions In-Market Intent 2 Influence 25-90% revenue lift for one client through use of Sentiments new analytic models; 70 % reduction in processing time for complex marketingSocial Followers campaigns—decreasing time from hours tomins Recommendations Likes 3 Psychographic surveys Scaled to support 50% data growth per year; Geo-Demographic Increased campaign performance by 50%3rd Party Segments BIG DATA Offline Transactions Responses PLATFORM 4 Transparent view of billions of ad impressions per day; achieved campaign goals while reducing CPA from $170 to $80
  • The New Age of Digital Marketing:How Big Data and Advanced AnalyticsAre Reshaping the Marketing World Krishnan Parasuraman Jonathan Margulies CTO, Digital Media Managing Director Netezza and Big Data @kparasuraman