Emergence of Big Data in Digital Marketing


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Automated Trading Summit 2012, Amsterdam

Big Data impacts the way we think about managing, processing and analyzing marketing data. It is the foundational element for building Digital Marketing solutions such as Audience Optimization, Channel Optimization, Content Optimization and Yield Optimization.

Recent research and studies provides some fascinating insights into how
(a) CMO's view Big Data as their biggest areas of "under-preparedness",
(b) Organizations view Advanced Analytics as a competitive advantage and
(c) Digital Marketers view Big Data as an enabling platform for all their future initiatives

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Emergence of Big Data in Digital Marketing

  1. 1. Amsterdam,  8  May  2012   Big Data Title    Emergence ofin Digital Marketing Krishnan Parasuraman CTO, Digital Media Netezza & Big Data Solutions
  2. 2. CMO Study1   MIT/Analytics2   IAB/Winterberry3  
  3. 3. 1   Insights from the CMO Study Interviewed 1700 CMOs 35% Europe 19 Industries 64 Countries
  4. 4. Which underprepared areas are the most critical for CMOs?
  5. 5. Marketing Priority Matrix 1 Big Data 2 Social media Under- preparedness 3 Growth of channel and device choices 170 4 Shifting consumer demographics 2 3 46050 Factors Impacting40 Marketing 0 20 40 60 Mean
  6. 6. Marketing Priority Matrix 1 Big Data 2 Social media Under- preparedness 3 Growth of channel and device choices 170 4 Shifting consumer demographics 2 5 Financial constraints 3 6 Decreasing brand loyalty 4 5 7 Growth market opportunities60 6 10 7 9 8 ROI accountability 8 11 9 Customer collaboration and influence 12 10 Privacy considerations50 13 11 Global outsourcing 12 Regulatory considerations Factors Impacting 13 Corporate transparency40 Marketing 0 20 40 60 Mean
  7. 7. CMOs cite Big Data and their ability to cope with itas the area that they are most underprepared
  8. 8. Need for change to deal with Big DataPercent  of  CMOs  indica9ng  high/significant  need   Invest  in   73%   technology   Integrate   69%   insights   Understand   65%   analy6cs   Rethink   64%   skill  mix   Collaborate   52%   with  peers   Validate   49%   ROI   Address   28%   privacy  
  9. 9. Analytics: The new2   path to value with MIT Sloan Management Review Surveyed 3000 Executives, Managers and Analysts 30 Industries 100 Countries
  10. 10. Analytics Correlates to Performance 3x   5.4x  Organizations that lead in Top Performers are more likelyanalytics outperform those that to use an analytics approachare just beginning to adopt over intuition
  11. 11. What is holding back adoption of Analytics in your organization?
  12. 12. Primary obstacles to widespread analytics adoptionKnowing how to use analytics to improve the business 38%   Management bandwidth due to competing priorities 34%   Lack of skills internally 28%   Ability to get the data 24%   Lack of executive sponsorship 22%   Concerns with the data 21%   Organizational Perceived costs outweigh benefits 15%   Data Financial
  13. 13. From Information to3   Audiences: The Emerging Interviewed 175 Marketing Data Use Cases IAB and Winterberry Group Marketers Agency Execs Data compilers Ad Tech
  14. 14. Which use cases will be focal points ofyour future data driven Marketing Activity?
  15. 15. Ad targeting 4.4 Customer behavior analysis 4.3 Offer optimization 4.3 Content optimization 4.2 Audience  Cross-channel touchpoint optimization 4.2 Content   Yield optimization 4.1 Yield   Website optimization 4.1 Channel   SEM/ PPC portfolio optimization 3.8 Ad sales analysis 3.7 Email segmentation 3.7 Ad inventory forecasting 3.5 1 2 3 4 5 Not  likely  to  be  a   Likely  to  be  a  significant   focus  of  our  future   focus  of  our  future  data   data  u9liza9on   u9liza9on  
  16. 16. What are the Big Data Platformrequirements for these use cases?
  17. 17. Audience Optimization Handle Extreme Volumes of Data Online, Offline, Social, Behavior, First Party & Third Party across multiple channelsChannel Optimization Manage Wide Variety of Data   •  Structured – POS, 3rd Party, Transactions •  Unstructured – Social, Video, Blogs •  Semi-Structured – Cookies, ImpressionsContent Optimization Analyze Data in Real Time   Product Recommendations, Real Time offers, Targeted Ads in Real Time Yield Optimization Discover & Experiment Ad-hoc analytics, data discovery & experimentation
  18. 18. Impressions   Audience Optimization Cookies   Online   RegistraFons   Purchase  TransacFons   In-­‐Market  Intent   Channel Optimization Influence   SenFments   BIG DATASocial   Followers   RecommendaFons   Likes   PLATFORM Content Optimization Psychographic  surveys   Geo-­‐Demographic  3rd  Party   Segments   Yield Optimization Offline  TransacFons   Responses  
  19. 19. Amsterdam,  8  May  2012   Big Data Title    Emergence ofin Digital Marketing Krishnan Parasuraman @kparasuraman