After The Land Grab: 10 Trends Shaping Big Data’s Next Stage


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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.

Jonathan Margulies, Managing Director, Winterberry Group LLC

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After The Land Grab: 10 Trends Shaping Big Data’s Next Stage

  1. 1. After the Land Grab:10 Trends Shaping Big Data’s Next StageJonathan Margulies January 23, 2013Managing Director OMMA DDM • New York, NY
  2. 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. 3. Our AgendaAfter the Land Grab• The Data “Market”: Four Evolving Paradigms• 10 for ‘13: Trends Shaping Big Data’s Next Stage
  4. 4. “What Is Data?” Depends on Your Perspective…Targeting Vs. Audience Insights
  5. 5. “What Is Data?” Depends on Your Perspective…Personally-Identifiable Vs. Anonymous
  6. 6. “What Is Data?” Depends on Your Perspective…Relationship-Enriching Creepy Vs.
  7. 7. “What Is Data?” Depends on Your Perspective…Established Vs. “Big”
  8. 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. 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. 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 2and analytics services(3) Includes mailing lists, database management/hygiene Direct Mail-Related Data Spending3 3and analytics services Source: Winterberry Group analysis of various sources
  11. 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 SpendingSource: Winterberry Group analysis of various sources Display Spending Direct Mail Spending
  12. 12. We’re Now Emerging from “Big Data 1.0”: A Land Grab for Informationand Resources (Without the Benefit of Vision, Experience or Insight)
  13. 13. Our AgendaAfter the Land Grab• The Data “Market”: Four Evolving Paradigms• 10 for ‘13: Trends Shaping Big Data’s Next Stage
  14. 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. 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 significantSource: Winterberry Group survey, of our future data focus of our future dataJan. 2012 utilization utilization
  16. 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. 17. Organizations Lack the Necessary Analytic and Technical SkillsInternally; 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. 18. The Process Gap: Many Still Trying to Force New-World InformationThrough 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. 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 technologySource: Winterberry Group, November 2012
  20. 20. The Big Data Death Match: Marketing, IT Vie for Influence OverCritical 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. 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 arent 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 customersSource: Columbia Business School, NYAMA: “Marketing ROI in the Era of Big Data,” 2012
  22. 22. The “Omnichannel” Imperative: Engaging Customers Across ScreensBecomes 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. 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. 24. In the Line of (Regulatory) Fire: If We’re All Buying and SellingInformation, 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. 25. Largely Underreported: The Consumer Benefits That Come withResponsible, Transparent Data Deployment Source: The New York Times, “You for Sale,” June 16, 2012
  26. 26. The DMP at Center Stage: Big (Marketing) Data Demands CustomTools 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. 27. The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
  28. 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. 29. Rules of the Road: Stewardship Strategies Emerge as CriticalPrerequisite 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. 30. Most Marketing Teams Unprepared When it Comes to the EvolvingDemands of Marketing Data Stewardship “Does your company have a specific “How prepared is your marketing teamstrategy 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. 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. 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 ExpectationsSource: Gartner, Hype Cycle for Cloud Computing, August 2012 Time
  33. 33. Or Should We Learn From the Experience of Past Innovation Cycles? Its 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” withScott 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. 34. Toward a “Secret Sauce”: Competitive Differentiation Derived fromMore 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. 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
  36. 36. Thank You!60 Broad Street, 38th Floor Jonathan MarguliesNew York, NY 10004 Managing @jcmargulies