Digital marketing has evolved from outbound campaigns to include inbound channels and predictive analytics. As data and devices proliferate, marketers must deal with huge amounts of structured and unstructured data in real-time to trigger personalized campaigns. Emerging technologies like natural language processing, big data analytics, machine learning, and the Internet of Things will enable predictive and prescriptive marketing by detecting events and pushing customized content through various devices. This will mark the beginning of Digital Marketing 2.0 and an "anytime, anywhere" marketing paradigm driven by real-time prediction and recommendations.

1. Digital Marketing 2.0 - Rise of the predictive
analytics
Marketing has come off age in last couple of decades. Before e-commerce
started, marketers predominantly used outbound marketing (both for B2B and
B2C) to reach out to prospects via offline and electronic (mostly TV and Radio)
channels.
With the evolution of Internet, e-commerce; proliferation of Digital channels
and payment services in last 10-15 years, marketers started to do both inbound
& outbound channel marketing. This gave birth to Digital Marketing
paradigm.
Marketers owned the budgets for paid, earned and owned media; generated
leads and assisted in cross-sell and upsell.
Last decade was the decade of "Internet of People". And marketers used
vanilla Closed loop digital marketing (i.e. Campaign management, Web
analytics, Test and Target and Optimization) to achieve KPI's like click to
conversion ratio, Revenue targets etc. The focus was on manual analysis of
customer database (mostly structured data) to create segments based on
customer attributes, execute multi-channel campaigns (email, websites,
mobiles, social etc), measure the effectiveness, do test on small audience
(persona) and derive insights through analytics and fine tune the campaign for
better outcome. Marketers also began to optimize the marketing budget with
basic attribution capabilities and do simple marketing and media mix
modelling to maximize revenue.
I think, Digital Marketing has reached a stage, where we begin to see degree of
maturity in Multichannel campaign management.
Happy days , RIGHT!! Not Really. Fast forward the clock into not so distant
future and we see a decade of "Internet of things" where there will be
explosion of mobile, sensor, wearable devices and explosion of data emitted &
consumed by them. This throws a great challenge to marketers. They need to
deal with huge volume of structure and unstructured data and do marketing
based on events and triggers on real time.

2. In my view following are the key Technology trends and high value Banking
use cases, which will drive next generation Digital Marketing (i.e. data driven
real time), where we will see the rise of the predictive & prescriptive analytics:-
1. Natural language processing - Most of the Technology vendors for
Social & text media sentiment analysis and trend spotting use one-
dimensional text analytics and NLP techniques. This has accuracy level of
approx. 70% to detect emotion and intent. It's still not able to detect important
nuances like irony or sarcasm.
But, once those capabilities mature, marketers will use these for branding and
sales to derive customer intends and predict segments for Targeting more
accurately.
Use-case - Potential high value use-case for banks will be ability to do
product ideation or Services through Social intelligence (where banks starts to
mine and own the data and create the new product or service - a very different
model than crowdsourcing).
2. Big data & in-memory Analytics - With the increasing maturity to
handle large volume of structured and unstructured data in real time through
Apache Hadoop based MapReduce parallel processing framework; efficient
distributed storage systems (file system and in-memory Database) like
HDFS,SAP HANA, Cassandra; real time in-memory computing like Apache
Sparks, are giving enormous capabilities to drive real time prediction and
advising.
Marketers can start to discover data, spot statistical correlation and apply
propensity modelling to create Need (profitability) or Value (lifestyle) based
segmentation. It will also allow advanced attribution forecasting algorithms
and "what if?" analysis to drive marketing & media mix optimization; It will be
the beginning of meaningful predictive & prescriptive analytics marketing
triggered by event & real time data.
Use-case - Potential high value use-case for banks will be the ability to use
mobile wallet as a trusted payment advisor - Driving higher sales through
loyalty, rewards and discounts.
3. Machine learning and behavioural science - with the evolution of
psychology and other social sciences; it could become a source for business

3. intelligence and help marketers to do marketing better. The Neuroscience is
still not matured enough to be adopted at large scale. But, marketers can start
to use Machine learning algorithms to understand behaviour through
engagement techniques such as gamification and refine segmentation and
attribution modelling to improve real time marketing outcomes.
Use-case - Potential high value use-case for banks will be Gamifying a
customer engagement scenarios to understand psyche & emotion. Once
outcomes are measured feed the outcome into redesigning the customer
experience with Web and call centre interactions.
4. Internet of things - We will soon be surrounded by mobile devices,
wearable & sensors & intelligent display boards everywhere - Every device will
emit data & Marketers need to capture them to create a 720* view of
customers. With evolution of API management, Big data, in-memory
computing, NLP, Machine and cognitive learning capabilities, marketers will
start to truly realize dream of anytime, Anywhere marketing; Ability to
detect an event, create recommendations and push the content in real time
through devices like smart phones, Google Glass, advertising board, smart TV
or watch will be achievable.
Use-case - Potential high value use-case for banks will be real time Marketing
through Wearables like google glass; where Mobile Wallet and devise will act
as information processer and receiver; but Glass will be the used as content
delivery platform or even the intelligent delivery display boards will do
marketing on real time based over audience nearby.
Predictive analytics will give rise to Digital Marketing 2.0, a begining
of anytime, anywhere marketing paradigm.