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Brad Terrell

Marketing in Real Time :
     The Technology
    & Data Imperative
“Innovation distinguishes between
     a leader and a follower”
          – Steve Jobs
SEPTEMBER 20, 2010, 9:34 AM ET


IBM Buys Netezza for $1.7 Billion




                                    3
Data-centric strategies create value
Data
 is a source of
  Uniqueness


  Uniqueness
    is a source of
      Competitive
       Advantage
We made it!
Marketing and Data Analysis
      are Intertwined
Digital Exhaust
   benefits marketers
“75% of CMOs rearranging their teams in 2011
to keep pace with the demands of digital media”
       – Chris Stutzman, Forrester Research
“The sexy job in the
  next 10 years will
 be statisticians” –
  Hal Varian, Chief
 Economist, Google




 10
A+ players
are hard to find
Extracting insights from exploding data volumes
 requires new technologies and methodologies
What initiated this trend?
Sampling can be a good thing…




                       but not in
                   digital marketing!
Throwing out impressions
breaks attribution analysis
Massively.
  Parallel.
Computing.
“The company with
the most data wins”
   – Tim O’Reilly
It’s not just about big…
Reducing data latency
creates significant marketing value
Real-time marketing is like being in the
stands instead of watching it on TV later
Increasing consumer power
means the stakes are higher
Relevance:
 because one size
   does not fit all
The Data Aggregation Problem
The Bidding Problem
                                                   Market X: Price/Volume Curve
Price/Volume Forecast                                         1,200,000

Curves Show the Optimal




                                        IMPRESSIONS PER DAY
                                                              1,000,000

Bid in Each Market:                                            800,000

                                                               600,000

                                                               400,000


max ((R − B) ⋅ N(B))                                           200,000

                                                                      0
                                                                       0.00     1.00     2.00       3.00   4.00   5.00
  R = revenue derived from showing ad                                                           CPM Bid

  B = ad’s bid
N(B) = impression volume for bid B as              Market X: Profit Curve
       predicted by P/V Curve                                 3,500
                                                              3,000
                                                              2,500
                                            PROFIT
                                                              2,000
                                                              1,500
                                                              1,000
                                                               500
                                                                 0
                                                                  0.00        1.00     2.00        3.00    4.00   5.00
                                                                                                CPM Bid
Customer Insight Through Deeper Analysis
      (The Fastest Climbers Win)
                                                   Optimization

                          Predictive
                          Analytics
BI Reporting and
Ad-Hoc Analysis



                                                  • What is the
                                                    best choice?

                     • What will happen?
                     • What will the impact be?

 • What happened?
 • When and where?
 • How much?
Brad Terrell: Marketing in Real Time: Technology & Data Imperative

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Brad Terrell: Marketing in Real Time: Technology & Data Imperative