In the first stages of the data revolution, marketers realized that all types of data have the potential to inform and transform every level of the modern enterprise. And so a massive land grab fed everyone’s basic data sets. But now real experience working with data and practicalities of the market are informing the next stage in development reflecting users’ contrasting needs to generate incremental value from their data utilization. Maintaining discipline in investment of money and resources and in delivering better customer experiences are now paramount concerns. With that in mind, we’ll identify the 10 dynamics that we expect will dictate demand for (and the relative value of) data in 2013. Presenter Jonathan Margulies, Managing Director, Winterberry Group LLC

1. After the Land Grab:
10 Trends Shaping Big Data’s Next Stage
Jonathan Margulies January 23, 2013
Managing Director OMMA DDM • New York, NY

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 Due Diligence Support
• Investment Banking Services, through

3. Our Agenda
After the Land Grab
• The Data “Market”:
Four Evolving
Paradigms
• 10 for ‘13: Trends
Shaping Big Data’s
Next Stage

4. “What Is Data?” Depends on Your Perspective…
Targeting
Vs.
Audience Insights

5. “What Is Data?” Depends on Your Perspective…
Personally-Identifiable
Vs.
Anonymous

6. “What Is Data?” Depends on Your Perspective…
Relationship-Enriching Creepy
Vs.

7. “What Is Data?” Depends on Your Perspective…
Established
Vs.
“Big”

8. If Only We Could Illustrate The “Big Data” Opportunity…
Sources: Asigra, Century Link, Forbes/Dave Feinleib, HortonWorks, IBM, Jaspersoft,
NetApp, Sybase, Wikibon, Wipro

9. In the Media and Marketing Worlds, A Frenzy of “Big Data”
Investment Has Three Constituencies Vying for a Piece of the Pie
“The Buyers”: Marketers, “The Sellers”: Publishers,
Advertisers, Publishers Compilers, Researchers
“The Intermediaries”: Agencies,
Exchanges, Ad Tech & Service Providers
Shared Goals: Activation, Engagement, Value

10. But One Challenge Persists: Striking an “Omnichannel” Balance with
Costly (But Effective) Traditional Data Infrastructure
U.S. Spending, Targeted Marketing Data & Related Services
(2010-2014E)
Total: Total:
Total: $11.31 BB $11.57 BB
$9.96 BB 6.1%
3.9%
2.9% 2.4%
90.0%
94.7%
(1) Includes retargeting services, intent/inferred data,
offline data used for online marketing
Online Display-Related Data Spending1
1
(2) Includes e-mail lists, database management/hygiene E-mail-Related Data Spending2
2
and analytics services
(3) Includes mailing lists, database management/hygiene Direct Mail-Related Data Spending3
3
and analytics services
Source: Winterberry Group analysis of various sources

11. How (and When) Will Data Dollars Align with Top-Line Spending?
U.S. Spending, Targeted Marketing Media
(2010-2014E)
Total:
Total: $68.1 BB
Total:
$60.7 BB +57.1%
$56.2 BB
$1.4 BB +109.1%
$9.9 BB
-0.7%
$44.9 BB
2010 2012 2014E
Email Spending
Source: Winterberry Group analysis of various sources
Display Spending
Direct Mail Spending

12. We’re Now Emerging from “Big Data 1.0”: A Land Grab for Information
and Resources (Without the Benefit of Vision, Experience or Insight)

13. Our Agenda
After the Land Grab
• The Data “Market”:
Four Evolving
Paradigms
• 10 for ‘13: Trends
Shaping Big Data’s
Next Stage

14. The Use Cases Emerge: Something to Do With All That (Digital)
Data…
• Centerpiece applications
finally emerging across the
ecosystem
• Few deploying substantial (or
even equal) resources across
all addressable use cases;
investments reflect legacy
needs rather than systematic
data strategy

15. “How Important Will the Following Use Cases Be to Your Future
Data-Driven Marketing Efforts?”
Not likely to be a focus Likely to be a significant
Source: Winterberry Group survey, of our future data focus of our future data
Jan. 2012 utilization utilization

16. The Talent Gap: What Good is the Data if Nobody Understands It?
• Acute shortage of analytics/
technical staff with marketing
perspective inhibiting data
investment
• “All marketers are
technologists”: Up for
debate? Or just a matter of
time?

17. Organizations Lack the Necessary Analytic and Technical Skills
Internally; Have Trouble Recruiting
“How would you rate the analytic “How challenging is it for your company
capabilities of your company today?” to source analytical skills?”
78% No issue 0%
Somewhat
challenging
Challenging
76%
Very
difficult
Impossible
Source: NewVantage Partners: “Big Data Executive Survey,” 2012

18. The Process Gap: Many Still Trying to Force New-World Information
Through Old-World Pipes
• Infrastructure built to support
traditional media commonly
“engineered” to address
fundamentally different
execution needs
• The silo conflict: competing
interests with respect to data,
rights, budgets, authority,
creative assets, etc.

19. Internal Operating Challenges (and Neither Data nor Technology) Are
the Real Barriers to Wider Data Integration
“Which issues would you describe as ‘major hurdles’
inhibiting faster DMP 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, November 2012

20. The Big Data Death Match: Marketing, IT Vie for Influence Over
Critical Information Assets (and Marketing Might Just Win)
• At the heart of Big Data
evolution: a competition for
authority between marketing,
brand management and IT
• One likely solution: the
emergence of a dedicated
marketing technology
function (possibly aligned
with the chief data officer)

21. “Minor” Internal Conflicts Can Give Rise to Substantial Long-Term
Costs (Among Them: Missed Opportunity)
“What are your biggest challenges in using ‘Big Data’ for
marketing?”
51%
45%
42%
39%
29%
The lack of sharing We aren't using our We are not able to Our data is collected We have too little
data across the data to effectively link our data at the too infrequently or is customer or consumer
organization is an personalize messaging level of individual not real-time enough data
obstacle customers
Source: Columbia Business School, NYAMA: “Marketing ROI in the Era of Big Data,” 2012

22. The “Omnichannel” Imperative: Engaging Customers Across Screens
Becomes a Need-to-Have
• Consumers’ embrace of mobile,
social and other media raising
the bar for marketers to deliver
seamless engagement
• The dilemma: attribution,
campaign management,
execution approaches still
reflect “last-click,” single-
channel sensibility

23. The Prerequisite: Effective Multi-Platform Attribution
Why Pursue Better Though only 14% of marketers
think last-click attribution is “very
Attribution? effective,” 54% use the same as
their primary performance metric
Source: eConsultancy and Google Analytics,
Marketing Attribution: “Valuing the Customer Journey,” 2012

24. In the Line of (Regulatory) Fire: If We’re All Buying and Selling
Information, Just Who Exactly is a “Data Broker”?
• Growth of data-driven economy
focusing regulator attention on
marketplace; “data brokers”
under current FTC investigation
• Good questions: What is right
level of transparency, choice?
How to best deliver both?
• Bad question: “Who owns
data?”

25. Largely Underreported: The Consumer Benefits That Come with
Responsible, Transparent Data Deployment
Source: The New York Times, “You for Sale,” June 16, 2012

26. The DMP at Center Stage: Big (Marketing) Data Demands Custom
Tools to Meet Scale, Speed, Modularity Needs
• Originally developed to solve an
organic challenge—“How to
access audience segments from
third parties?”—DMPs now
serving as effective hub for data
integration, activation
• Growth driven by organizational
needs—not inherent complexity
of data or technology

27. The DMP Aggregates, Integrates, Manages and Deploys Disparate Data

28. 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 are
clients’) interest in DMP solutions has likely to play in expanding the performance
changed over the last several years?” of companies’ long-term advertising and
marketing efforts?”
Source: Winterberry Group, November 2012

29. Rules of the Road: Stewardship Strategies Emerge as Critical
Prerequisite for Data Activation
• Data stewardship strategies
emerging as critical “need-to-
have” given the growing role of
data across the enterprise (and
costs associated with its misuse)
• Once considered niche legal/
privacy function; now joining the
cross-disciplinary marketing
mainstream
Artwork Source: OCDQ Blog/Jim Harris, Jill Dyché

30. Most Marketing Teams Unprepared When it Comes to the Evolving
Demands of Marketing Data Stewardship
“Does your company have a specific “How prepared is your marketing team
strategy for handling the challenges of with regard to the rules and regulations
big data?” of marketing data governance?”
60%
Not Very
Somewhat
Very
Source: DMA/Neolane, “Big Data: Impact on Marketing Organizations,” January 2013

31. And One Contrary View: The Big Data Bubble is Here
• What if we invested millions of
dollars (and millions of man-
hours) in information,
technology and process changes
that… delivered very meager
results?
• How can we optimize the
chance that our Big Data bets
pay off in a meaningful way?

32. “Big Data” May Ultimately Prove Transformative, But There Will Be
Growing Pains as Companies Feel Their Way
Does the “hype cycle” provide a useful means of benchmarking
the progress of Big (Marketing) Data over the next few years?
Big Data
Technology Peak of Trough of Slope of Plateau of
Trigger Inflated Disillusionment Enlightenment Productivity
Expectations
Source: Gartner, Hype Cycle for Cloud Computing, August 2012
Time

33. Or Should We Learn From the Experience of Past Innovation Cycles?
It's as if the plan is roughly:
• Analyze data—preferably Big
Data
• ???
• Profit.
This feels eerily analogous to the
dot-com bubble of the late 90s to
me (substitute “analyze data” with
Scott Brinker; January 21, 2013 “capture eyeballs”)… except
underneath the hype, a truly major
revolution is happening: The real
revolution in data will be a
change in organizational behavior
and culture… creating a [data-
driven] organization that can
confidently experiment, innovate
and adapt on a broad scale

34. Toward a “Secret Sauce”: Competitive Differentiation Derived from
More Than Just Data Accrual
• Success in the “Big Data 2.0” era
will require more than just a data
land grab; it demands the
synthesis of strategy, customer
insight and automated execution
• At the end of the day, effective
strategy begins with desired
outcomes… which cannot be
identified by machine

35. For A Deeper Dive…
And Coming Soon…
“Taking Cues from the
Consumer: Omnichannel
Comes of Age”
and…
“The New Rules of the
Road: Data Stewardship
in the Era of Big Data”
Download at:
www.winterberrygroup.com/ourinsights

36. Thank You!
60 Broad Street, 38th Floor Jonathan Margulies
New York, NY 10004 Managing Director
www.winterberrygroup.com jmargulies@winterberrygroup.com
@WinterberryGrp @jcmargulies