Definition: Big Data• A collection of data sets so large and complex that it becomes awkward to work with using on- hand database management tools.• Difficulties include capture, storage, search, sharing, analysis and visualization.• Data that gives you actionable information about your – making you !
What Is The Data Flow ThatInforms Customer Marketing?
Definition: Marketing• The act of buying and selling in a market.• The total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing and selling.
Big Data + Marketing = Data-Driven Marketing• A customer oriented marketing approach that relies heavily on using customer data, especially customer behavior, to determine the targeting, timing and content of marketing promotions.• The ability to craft 360 degree intelligent views into your customer and use that for retention marketing as well as prospecting efforts.
Why Is It Important?1. Marketers’ are becoming more dependent on dataand technology to drive efficiency and effectiveness. Only 20% of marketing leaders believe their2. The volume of data that is available to you, as a organizations have a holisticmarketer, is increasing exponentially. view of the customer.3. The volume of marketing touchpoints by which youreach customers is growing almost as fast. (source: Forrester 2012)4. Future effectiveness in your role as a marketer reliesheavily on your ability to manage and ACTIVATE data! Your JOB Depends On It!!
Trust Us – People Are Spending On “Big Data” Marketing! Spend (MM) source: Winterberry Analysis20142012 customer intelligence technologies in the short or long term2010 (source: Forrester 2011)2008 0 200 400 600 800 1000
The Data Has Been There, But It Was Not Able To Be Activated! • Data was collected in mass amounts andData Warehousing “warehoused” so analysts could crunch the numbers and find out more about their customers. • Useful for forecasting and business planning, but not useful in terms of being able to be “actioned” for marketing purposes.
The Internet Ad Business Emerged & Exponentially Created More Data • The Internet created massive amounts ofData Warehousing additional data points around your customers in a faster fashion than ever before. Internet Advertising • Every digital media partner started creating segmentation opportunities that were silo’d and only indicative of their site visitors.
Ad Networks Emerged To Provide Long-Tail Data-Driven Advertising • The business quickly shifted from content-Data Warehousing focused publisher opportunities to long- tail, aggregated content targeting. Ad Networks Internet Advertising • Reach increased. • Performance decreased.
Ad Exchanges Created The Larger Chance To Integrate Behavioral Data • Behavioral targeting was birthed by companies like Tacoda and Revenue Science.Data Warehousing Behavioral Targeting Ad Networks Ad Exchanges Internet Advertising • Reach increased even more. • Performance increased quickly. • Efficiency increased even quicker.
Around The Same Time, BlueKai Launched The First Data Exchange • Opportunity to buy 3rd party data from a host of branded and unbranded parties, includingData Warehousing intent or in-market data, for targeting. Behavioral Data Targeting Exchanges Ad Networks Ad Exchanges Internet Advertising • Reach continues to grow. • Performance increased dramatically. • Efficiency increased again (less waste).
The DSP’s & Trading Desk’s EmergedTo Drive More Audience (Data) Buying • Additional data beyond standard behavioral data is integrated into increased audienceData Warehousing buying opportunities. Behavioral Data Targeting Exchanges Trading Ad Networks Ad Exchanges Desks, DSPs, e tc. Internet Advertising • Reach continues to grow. • Performance increased further. • Efficiency increased even more.
Marketers Said “Yes” To Targeting. 1st Party Data Integrated With DMP’s • Data management platforms allowed for 1st party data to be integrated with 3rd party data, all toData Warehousing create a 360 degree view of the customer. Behavioral Data DMP’s Targeting Exchanges Trading Ad Networks Ad Exchanges Desks, DSPs, e tc. BlueKai launched first Internet Advertising industry DMP • You see the trend here… – Efficiency up! – Performance up!
Marketers WANT These Solutions In-House (Hence The Rise Of The DMP)
Data Activation Is… • Classifying, segmenting data to build actionable customer profiles. • Permissioning and sharing active customer profiles while maintaining control. • Informing ALL your marketing touchpoints with real, usable customer data.
Some Interesting Facts About Data & Data Activation…• 82% of marketers believe digital marketing has potential to provide than any other type of marketing (source: DataXu 2012).• Over 75% feel customer data generated through digital marketing can (source: DataXu 2012).• 88% of advertiser and agency buyers planned to in 2011 (source: Google/Doubleclick).
Basic Data TerminologyWhat are some of the key terms you need to know
Impressions• The core measure of internet advertising, it refers to the exposure of a message to the the user.
Cookie• The industry standard tool for data acquisition and aggregation.
CPM• The core measurement of impressions to price for internet advertising.
Stamps• The core term referring to an “attribute” of data for any individual user.
Transactions• The reference point for passing back and forth the sum of attributes for any individual user (multiple stamps per transaction refer to one user).
iCPM• An impression measure that counts impressions INFORMED by data.
Industry Benchmarks• There are at least served on the internet every month – (source: 5.5 Trillion per year based on quarterly estimates from Comscore)• BlueKai currently (September 2012) processes approximately per month
Behavioral Data Targeted Impressions Perform, OnAverage, Better Than Industry Average.
The LandscapeWho are the players and how do we decipher them?
Where Do We Start When ThinkingAbout The Digital Media Landscape? Where else…?
The Business Of Digital Media IsComplicated. With So Much Data Being Created & Collected, You An Activation Platform!!
What Is Data Activation?• Step 1: A single unifying platform that , and data.• Step 2: A single, centralized platform that enables you to for use in customer experience optimization. • Media planning & buying • Website customization • CRM and retention efforts • Direct mail and offline touchpoints
What Are Data Activators? AdnetsSome activators provide a service for the DSPutilization of data segments across a singleplatform (i.e. DSP, DMP or Ad Exchange)… DMP Exchange (media only) Mobile Premium non- Search Site/Commerce Analytics CRM RTB Ads Social inventory
What Are Data Activators? Adnets…Stronger Activation occurs across multiple DSPplatforms, unifying your marketing mix with asingle platform for data management. DMP Exchange (media only) Mobile Premium non- Search Site/Commerce Analytics CRM RTB Ads Social inventory Across All Platforms
Why Focus On Rather Than “Data Management”More data means you knowmore about your audience. between customers, prospects and competitive conquests!
Why Focus OnRather Than “Data Management”Merge 1st and 3 rd party data. –Creates a of who your customer REALLY is!
Why Focus On Rather Than “Data Management”Dramatically improveconversions. –By integrating data in real time to power your marketing efforts!
Why Focus On Rather Than “Data Management”Unify all your marketing partners –Save time and resources by creating a approach to all your marketing efforts!
Data Management Is Finite – It’s a Black Box – You Need To Data, Not Simply Store It
Over The Next 3 Years, DataActivation Will Become The Norm.
Data Activation Allows You, The Marketer, To Take Control.
Use Cases For Data Activation (where you control the scale and efficiency)• Prospect Targeting (New Customers)• Retargeting (Current Customers)• Lookalike Targeting (Prospects)• Site Personalization (Visitors)• CRM (Message Delivery)• Dynamic Creative Optimization (All) aka: “Data To The Edges”
Data Activation: Prospecting With a DMP that connects to a 3rd party data They set up a prospecting campaign to reach A wireless carrier leverages Data exchange, the wireless carrier is able to acquire people who have shown an intent toActivation to reach targeted audiences who and target users who have shown intent to purchase a wireless device or techare interested in wireless products (beyond purchase a wireless device on other web gadget, along with relevant demographic properties. attributes such as age range. people who come to website.) When they identify his group of targets across their chosen ad network or As an Activationist, they are able to do exchange, they are able to show them a the most efficient prospecting by only more relevant smartphone ad and drive purchasing new audiences who they new traffic to their website. have not seen on their own site.
Data Activation: ReTargeting Browsing activity across the retailers A retailer gets a ton of shopping traffic on their site, but over website is stored in DMP, audiences are 90% of those visitors do not convert. Activation can be used segmented based on a mix of behaviors to intelligently re-target users after they leave their site. that indicate purchase intent. To target most effectively, the retailer can exclude users who have already made a Relevant ads can be shown to them Consumer sees the relevant ad andpurchase on the website within a particular across the Internet (via ad network or ad clicks to come back to make a date range and limit frequency of ad exchange) to bring them back to the purchase. (Consumer will stop seeing exposure to any given audience. retailer site to make the purchase. the ads after the purchase)
Data Activation: Lookalikes/ Analytics Audience analytics from a Data Activation System can answer questions like: What is the profile of people who are What is the profile of people who are looking for business travel and what visiting my website? else do they buy? A large US online travel agency (OTA) uses Data Activation to aggregate various data on their visitors. They can then contrast this information against a larger Internet What other interesting attributes can population to learn more about their site What is the profile of people who are I learn about my audience to better visitors, ad clickers and converters. responding to my campaign? engage them?
Data Activation: Site Personalization With many lines of products across computers, printers, MP3 players, a large computer manufacturer wants to leverage The Activation Platform is able to extract 1st-party advertiser audience data to deliver the most guided and relevant experience data (ie. Website browsing data) and acquired 3rd-party data for their shoppers when they visit their website. to decipher what message to feature on their homepage. Rather than showing a generic homepage, this marketer might choose to feature their newest home laser printer series with a quick The Activation Platform comes pre-integrated with many of the link to a comparison chart, drawing this consumer closer to a sale. major site optimization companies in the industry.
Data Activation: Dynamic CreativeA DMP can transfer 1st and 3rd party audience A wireless carrier shows a specific Additional layer of shopping cart data can data directly to creative optimizations smartphone ad if they know a group of be applied to target special messages to companies to influence ad messages for users has exhibited specific interest in that cart abandoners to drive them back to finish specific group of users. type of phone. their purchase. The right ad Your data The result is a more relevant ad experience for the consumer while ensuring the A DMP comes pre-integrated with many of marketers dollars are well spend on not only reaching the right audience, but also the major dynamic creative optimization showing the best ad to drive results. companies in the industry.
Additional/Future Use Cases Include…• CRM Customization• Mobile Ad Delivery• Video Ad Customization• Informing offline marketing touchpoints: – Direct mail – Addressable TV (set-top box) – Point-of-sale & loyalty card coupon delivery
If You Control Your Data, You Control…• Scale• Efficiency• Partner Optimization
Scale• Most one-off solutions only scale with the audience they can immediately see. – If you control your data, you can information to provide for opportunities to target.
Efficiency• Relying on one-off partners’ data means they control matching and prioritize based on their revenue opportunities. – If you control the data, you and they report to you when your impressions win for bids.
Partner Optimization• Too many partners using too many different segments results in overlap and difficulties in attribution + lower performance. – When you control the segments + data, you and who see’s which successive message against the target.
Beyond The Use Cases For DataActivation… Trust In The
:The Atomic Unit Of Marketing Is Data – All of marketing serves to deliver a relevant message to the right audience at the right time to create an action. – The best way to do this to be targeted and targeting requires data. – The most important output of marketing, other than the result of driving a customer, is to create data and specifically to create data around customer attributes. – Without data you are throwing ideas at an audience and hoping they work. Data informs your marketing and gives it weight. It gives it relevance. It makes it work.
“I know that half of my advertising doesn’t work. The problem is, I don’t know which half”- John Wanamaker
There Is A Definitive Value To Data• The industry will eventually calculate a reliable metric• The formula includes: – Total cost (for integrating data into impressions) • Estimate of how much budget is allocated to data-informed imps – Total stamps (as proxy for depth of attributes) • More attributes = deeper knowledge of customer = increased targetability – Total impressions (informed by data) • Total reach against targeted users – % effect on performance (standard for interaction/click)
: Data At Rest Tends To Stay At Rest. Data In Motion Is Activated.Marketing Creates Amounts Of Data– The average web page creates 6 pieces of usable datapoints– An avg. online campaign generates approximately 6MM usable datapoints– Your average online campaign activates 16 tactical execution partners • (publishers, ad-serving, creative, reporting, etc.)Once The Data Is Live, It Creates– Cross-partner data usage– Perpetual data aggregation drives ongoing optimization– Avoids silo’d execution of your partners
: Scale x Depth = Efficiency (the formula for success)• Reliant on establishing a base of signal from noise in data – a little good data is better than a lot of bad data.• More data, more stamps, more attributes, therefore the more you know about your audience and the more you can tailor a message to them at the right time.• If you can port your data and the profiles you’ve created to many different places then you can scale. If you can’t, then you’re stuck.• There is more intrinsic value in a partner thaat is chanel agnostic than one who is tied to a single execution layer (i.e. a DSP)
: For Every Partner, There Is An Effective & Efficient Activation.• The eco-system is rather than consolidating.• Every partner that you work with will benefit from data their execution.• If you the data, you control the execution of your partners.
: Data Entropy – Customer Data Tends To Stay Fragmented Unless It Is Actively Organized (Also Known As Chaotic Data Theorem) .• Data is accumulated on a minute by minute basis and the volume grows exponentially.• Unless you have a system in place to manage and activate it, it is a wasted opportunity.• You need to establish a classification methodology, and implement through to full data activation to turn bits and bytes into customers.
When Examining Partners For DataActivation, Consider The Following1. Ability to ingest, classify and activate offline data2. Size of their partner network (established activations)3. Experience in activating across channel 1. Display, video, mobile, social, offline4. Past performance of their data partners5. Scope of the integration with their key customers 1. Server to server, etc.6. Ask what limitations they have in activating data 1. Overlap, match vs. passback
Summary• Data Activation is the core of marketing in 2013 and beyond.• Activation requires cross-channel capabilities.• It is complicated, so you need to select the right partner.• Do your homework.