The document discusses how marketing and data analysis have become intertwined due to digital technologies that generate large amounts of consumer data. It notes that extracting insights from exploding data volumes requires new technologies and methodologies. Additionally, real-time marketing allows companies to be more relevant to consumers by analyzing consumer data and preferences at speed and scale. The ability to analyze large datasets in real-time can provide competitive advantages for companies.
31. 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
32.
33. 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?