Bruce Ledesma is a digital marketing strategist with over 15 years of experience helping companies with their online positioning. The document discusses how the internet has disrupted economics by enabling customization, user data monetization through targeted ads, and new pricing models like freemium. It also covers issues around data privacy and how the internet has increased competition by reducing information asymmetry between buyers and sellers.
The Rise of the Data-Driven, Customer-Focused BusinessLinkedIn
Exploring Themes from 'The Big Data-Driven Business: How to Use Big Data to Win Customers, Beat Competitors, and Boost Profits' by LinkedIn's Russell Glass & Sean Callahan. Check out a full review on our blog: http://linkd.in/1xNrwCe
For the past 2 years, I have been doing speaker events around the topic of Artificial Intelligence. One of my endeavors started with a chatbot startup based in Hong Kong. This company has grown to be one of the leading chatbot providers in Asia.
In this presentation, I share the insights I have acquired throughout the past 2 years of building chatbots and chatbots solutions for large and small companies, how the industry has changed and what we should expect from it in the future.
Gerardo Salandra
The future is digital. Marketers, retailers, developers and managers must transform the world of the digital age.
The first step in the digital transformation is the orientation in which we understand the digital only as an opportunity, to be more efficient and to build lasting relationships with users.
The digital world is full of novelty and hype, so it is essential to first understand the basic principles of the digital world such as. interaction, personalization, analytics and automation, through which we may provide a new and lasting value to the business.
Social Media Week 2014: Modern Market Research Mashwork
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PRESENTERS: Kate Sirkin, EVP Global Research at Starcom Mediavest Group Stuart Schwartzapfel, CSO at Mashwork
Get Retail Smart - A fresh look at Amazonemmersons1
This week, we take a look at some of Amazon's most recent experiments to see what we could learn about the Everything Store and what it means for businesses across all industries going forward.
Articles Include:
The Facebook Marketer's Guide To Advertising On Instagram
Customer Spotlight: Southeast Toyota Case Study
4 key Lessons From This Year's Grammys
And More!
The Rise of the Data-Driven, Customer-Focused BusinessLinkedIn
Exploring Themes from 'The Big Data-Driven Business: How to Use Big Data to Win Customers, Beat Competitors, and Boost Profits' by LinkedIn's Russell Glass & Sean Callahan. Check out a full review on our blog: http://linkd.in/1xNrwCe
For the past 2 years, I have been doing speaker events around the topic of Artificial Intelligence. One of my endeavors started with a chatbot startup based in Hong Kong. This company has grown to be one of the leading chatbot providers in Asia.
In this presentation, I share the insights I have acquired throughout the past 2 years of building chatbots and chatbots solutions for large and small companies, how the industry has changed and what we should expect from it in the future.
Gerardo Salandra
The future is digital. Marketers, retailers, developers and managers must transform the world of the digital age.
The first step in the digital transformation is the orientation in which we understand the digital only as an opportunity, to be more efficient and to build lasting relationships with users.
The digital world is full of novelty and hype, so it is essential to first understand the basic principles of the digital world such as. interaction, personalization, analytics and automation, through which we may provide a new and lasting value to the business.
Social Media Week 2014: Modern Market Research Mashwork
Rethink everything you know about the consumer decision journey. SMG and Mashwork have executed several consumer decision journey studies together across automotive, technology and b2b spaces and draw on insight gleamed during this research to form the basis of this presentation. These studies map social conversation data against traditional purchase funnels (awareness, consideration, purchase, advocacy). The results are compelling, adding depth to each stage of the purchase journey while simultaneously shedding light on new targeting opportunities.
PRESENTERS: Kate Sirkin, EVP Global Research at Starcom Mediavest Group Stuart Schwartzapfel, CSO at Mashwork
Get Retail Smart - A fresh look at Amazonemmersons1
This week, we take a look at some of Amazon's most recent experiments to see what we could learn about the Everything Store and what it means for businesses across all industries going forward.
Articles Include:
The Facebook Marketer's Guide To Advertising On Instagram
Customer Spotlight: Southeast Toyota Case Study
4 key Lessons From This Year's Grammys
And More!
White space. White space. White space. White space. White space. White space. White space. White space. White space. White space. White space. White space.
The phrase "people-based marketing" is recent, coined only four years ago. But its goal of reaching the right consumer with the right offer, because you understand that person, goes way, way back. This timeline shows the evolution of people-based advertising from its origins in one-to-one marketing, to the present day.
Top Trends from SXSW Interactive 2014. The Big Roundup.Ashika Chauhan
SXSW wasn’t just about one or two pieces of new tech, what it actually felt like was a glimpse into the not-so-distant future.
Trends you might of heard of like wearables, data and the internet of things are still around, but they’re beginning to grow-up and different industries are beginning to be disrupted as a result.
More than anything, the conference instilled a sense of responsibility in me. The decisions we make today, as people, as agencies and as brands will define the future we live in tomorrow.
The deck covers the most prominent trends from this year. I'd love to hear your thoughts, say hello @ashikachauhan.
Ashika Chauhan is Big’s Digital Experience Director and is passionate about creative innovation.
Digital Marketing and "Virtual Touch" TechnologyCharmian Solter
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Each year, art meets technology at the South by Southwest (SXSW) Interactive Festival in Austin, Texas. Celebrating the convergence of the interactive, film, and music industries, this year's conference featured panels, seminars, parties and live music. Topics ranged from artificial intelligence and chat bots to female leadership and social purpose, revealing future trends for brands and agencies to keep in mind this upcoming year. Here are Y&R's key takeaways from SXSW 2017.
You are your content - Being here, now: State of content 2017Accenture Insurance
Our relationship to content has been transformed. So many aspects of our lives, big and small, are lived online. From education to recreation, one is hard-pressed to identify aspects of modern life not changed by digital content. This second annual study from Accenture Interactive surveyed over 1,000 executives from 14 countries and 18 industries to understand this shifting paradigm, and to help organizations respond.
Content must be a vital expression of an organizations purpose, and true to its lifeblood. Content is how the organization expresses itself. In this hyper-connected age, You are Your Content, it is the voice of your organization. And so, it is no surprise that organizations are beginning to want to own that voice, building new in-house capabilities, innovating in distribution channels, focusing on quality, and establishing stewardship at the most senior levels of the organization in order to be everywhere for their audiences.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
White space. White space. White space. White space. White space. White space. White space. White space. White space. White space. White space. White space.
The phrase "people-based marketing" is recent, coined only four years ago. But its goal of reaching the right consumer with the right offer, because you understand that person, goes way, way back. This timeline shows the evolution of people-based advertising from its origins in one-to-one marketing, to the present day.
Top Trends from SXSW Interactive 2014. The Big Roundup.Ashika Chauhan
SXSW wasn’t just about one or two pieces of new tech, what it actually felt like was a glimpse into the not-so-distant future.
Trends you might of heard of like wearables, data and the internet of things are still around, but they’re beginning to grow-up and different industries are beginning to be disrupted as a result.
More than anything, the conference instilled a sense of responsibility in me. The decisions we make today, as people, as agencies and as brands will define the future we live in tomorrow.
The deck covers the most prominent trends from this year. I'd love to hear your thoughts, say hello @ashikachauhan.
Ashika Chauhan is Big’s Digital Experience Director and is passionate about creative innovation.
Digital Marketing and "Virtual Touch" TechnologyCharmian Solter
The reach and effectiveness of digital marketing caused a decline in the usage of traditional marketing channels, including face-to-face interaction, paving the way for “virtual touch,” social media platforms, video marketing, and real-time chat applications to address consumer demand for authenticity and engagement in today’s digital marketplace.
Each year, art meets technology at the South by Southwest (SXSW) Interactive Festival in Austin, Texas. Celebrating the convergence of the interactive, film, and music industries, this year's conference featured panels, seminars, parties and live music. Topics ranged from artificial intelligence and chat bots to female leadership and social purpose, revealing future trends for brands and agencies to keep in mind this upcoming year. Here are Y&R's key takeaways from SXSW 2017.
You are your content - Being here, now: State of content 2017Accenture Insurance
Our relationship to content has been transformed. So many aspects of our lives, big and small, are lived online. From education to recreation, one is hard-pressed to identify aspects of modern life not changed by digital content. This second annual study from Accenture Interactive surveyed over 1,000 executives from 14 countries and 18 industries to understand this shifting paradigm, and to help organizations respond.
Content must be a vital expression of an organizations purpose, and true to its lifeblood. Content is how the organization expresses itself. In this hyper-connected age, You are Your Content, it is the voice of your organization. And so, it is no surprise that organizations are beginning to want to own that voice, building new in-house capabilities, innovating in distribution channels, focusing on quality, and establishing stewardship at the most senior levels of the organization in order to be everywhere for their audiences.
The What, Why & How of 3D and AR in Digital CommercePushON Ltd
Vladimir Mulhem has over 20 years of experience in commercialising cutting edge creative technology across construction, marketing and retail.
Previously the founder and Tech and Innovation Director of Creative Content Works working with the likes of Next, John Lewis and JD Sport, he now helps retailers, brands and agencies solve challenges of applying the emerging technologies 3D, AR, VR and Gen AI to real-world problems.
In this webinar, Vladimir will be covering the following topics:
Applications of 3D and AR in Digital Commerce,
Benefits of 3D and AR,
Tools to create, manage and publish 3D and AR in Digital Commerce.
SMM Cheap - No. 1 SMM panel in the worldsmmpanel567
Boost your social media marketing with our SMM Panel services offering SMM Cheap services! Get cost-effective services for your business and increase followers, likes, and engagement across all social media platforms. Get affordable services perfect for businesses and influencers looking to increase their social proof. See how cheap SMM strategies can help improve your social media presence and be a pro at the social media game.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
2) ‘Alternative’ Lead Gen - Advocacy
3) The Beautiful Basics - Conversion Rate Optimization
4) Land that Bottom Line - Profitability
5) Roll the Dice - New Business Models
How to Use AI to Write a High-Quality Article that Ranksminatamang0021
In the world of content creation, many AI bloggers have drifted away from their original vision, resulting in low-quality articles that search engines overlook. Don't let that happen to you! Join us to discover how to leverage AI tools effectively to craft high-quality content that not only captures your audience's attention but also ranks well on search engines.
Disclaimer: Some of the prompts mentioned here are the examples of Matt Diggity. Please use it as reference and make your own custom prompts.
Is AI-Generated Content the Future of Content Creation?Cut-the-SaaS
Discover the transformative power of AI in content creation with our presentation, "Is AI-Generated Content the Future of Content Creation?" by Puran Parsani, CEO & Editor of Cut-The-SaaS. Learn how AI-generated content is revolutionizing marketing, publishing, education, healthcare, and finance by offering unprecedented efficiency, creativity, and scalability.
Understanding
AI-Generated Content:
AI-generated content includes text, images, videos, and audio produced by AI without direct human involvement. This technology leverages large datasets to create contextually relevant and coherent material, streamlining content production.
Key Benefits:
Content Creation: Rapidly generate high-quality content for blogs, articles, and social media.
Brainstorming: AI simulates conversations to inspire creative ideas.
Research Assistance: Efficiently summarize and research information.
Market Insights:
The content marketing industry is projected to grow to $17.6 billion by 2032, with AI-generated content expected to dominate over 55% of the market.
Case Study: CNET’s AI Content Controversy:
CNET’s use of AI for news articles led to public scrutiny due to factual inaccuracies, highlighting the need for transparency and human oversight.
Benefits Across Industries:
Marketing: Personalize content at scale and optimize engagement with predictive analytics.
Publishing: Automate content creation for faster publication cycles.
Education: Efficiently generate educational materials.
Healthcare: Create accurate content for patients and professionals.
Finance: Produce timely financial content for decision-making.
Challenges and Ethical Considerations:
Transparency: Disclose AI use to maintain trust.
Bias: Address potential AI biases with diverse datasets.
SEO: Ensure AI content meets SEO standards.
Quality: Maintain high standards to prevent misinformation.
Conclusion:
AI-generated content offers significant benefits in efficiency, personalization, and scalability. However, ethical considerations and quality assurance are crucial for responsible use. Explore the future of content creation with us and see how AI is transforming various industries.
Connect with Us:
Follow Cut-The-SaaS on LinkedIn, Instagram, YouTube, Twitter, and Medium. Visit cut-the-saas.com for more insights and resources.
The Secret to Engaging Modern Consumers: Journey Mapping and Personalization
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Key Takeaways:
Current consumer landscape; Steps to mapping an effective consumer journey; Understanding the value of personalization; Integrating mapping and personalization for success; Brands that are getting It right!; Best Practices; Future Trends
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Key Takeaways:
Email has the best ROI of any digital tactic
It can be used at any stage of the customer journey
It is increasingly important as the cookie-less future gets closer and closer
Digital marketing is the art and science of promoting products or services using digital channels to reach and engage with potential customers. It encompasses a wide range of online tactics and strategies aimed at increasing brand visibility, driving website traffic, generating leads, and ultimately, converting those leads into customers.
https://nidmindia.com/
When most people in the industry talk about online or digital reputation management, what they're really saying is Google search and PPC. And it's usually reactive, left dealing with the aftermath of negative information published somewhere online. That's outdated. It leaves executives, organizations and other high-profile individuals at a high risk of a digital reputation attack that spans channels and tactics. But the tools needed to safeguard against an attack are more cybersecurity-oriented than most marketing and communications professionals can manage. Business leaders Leaders grasp the importance; 83% of executives place reputation in their top five areas of risk, yet only 23% are confident in their ability to address it. To succeed in 2024 and beyond, you need to turn online reputation on its axis and think like an attacker.
Key Takeaways:
- New framework for examining and safeguarding an online reputation
- Tools and techniques to keep you a step ahead
- Practical examples that demonstrate when to act, how to act and how to recover
The session includes a brief history of the evolution of search before diving into the roles technology, content, and links play in developing a powerful SEO strategy in a world of Generative AI and social search. Discover how to optimize for TikTok searches, Google's Gemini, and Search Generative Experience while developing a powerful arsenal of tools and templates to help maximize the effectiveness of your SEO initiatives.
Key Takeaways:
Understand how search engines work
Be able to find out where your users search
Know what is required for each discipline of SEO
Feel confident creating an SEO Plan
Confidently measure SEO performance
A.I. (artificial intelligence) platforms are popping up all the time, and many of them can and should be used to help grow your brand, increase your sales and decrease your marketing costs.In this presentation:We will review some of the best AI platforms that are available for you to use.We will interact with some of the platforms in real-time, so attendees can see how they work.We will also look at some current brands that are using AI to help them create marketing messages, saving them time and money in the process. Lastly, we will discuss the pros and cons of using AI in marketing & branding and have a lively conversation that includes comments from the audience.
Key Takeaways:
Attendees will learn about LLM platforms, like ChatGPT, and how they work, with preset examples and real time interactions with the platform. Attendees will learn about other AI platforms that are creating graphic design elements at the push of a button...pre-set examples and real-time interactions.Attendees will discuss the pros & cons of AI in marketing + branding and share their perspectives with one another. Attendees will learn about the cost savings and the time savings associated with using AI, should they choose to.
SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
Mastering Local SEO for Service Businesses in the AI Era is tailored specifically for local service providers like plumbers, dentists, and others seeking to dominate their local search landscape. This session delves into leveraging AI advancements to enhance your online visibility and search rankings through the Content Factory model, designed for creating high-impact, SEO-driven content. Discover the Dollar-a-Day advertising strategy, a cost-effective approach to boost your local SEO efforts and attract more customers with minimal investment. Gain practical insights on optimizing your online presence to meet the specific needs of local service seekers, ensuring your business not only appears but stands out in local searches. This concise, action-oriented workshop is your roadmap to navigating the complexities of digital marketing in the AI age, driving more leads, conversions, and ultimately, success for your local service business.
Key Takeaways:
Embrace AI for Local SEO: Learn to harness the power of AI technologies to optimize your website and content for local search. Understand the pivotal role AI plays in analyzing search trends and consumer behavior, enabling you to tailor your SEO strategies to meet the specific demands of your target local audience. Leverage the Content Factory Model: Discover the step-by-step process of creating SEO-optimized content at scale. This approach ensures a steady stream of high-quality content that engages local customers and boosts your search rankings. Get an action guide on implementing this model, complete with templates and scheduling strategies to maintain a consistent online presence. Maximize ROI with Dollar-a-Day Advertising: Dive into the cost-effective Dollar-a-Day advertising strategy that amplifies your visibility in local searches without breaking the bank. Learn how to strategically allocate your budget across platforms to target potential local customers effectively. The session includes an action guide on setting up, monitoring, and optimizing your ad campaigns to ensure maximum impact with minimal investment.
Financial curveballs sent many American families reeling in 2023. Household budgets were squeezed by rising interest rates, surging prices on everyday goods, and a stagnating housing market. Consumers were feeling strapped. That sentiment, however, appears to be waning. The question is, to what extent?
To take the pulse of consumers’ feelings about their financial well-being ahead of a highly anticipated election, ThinkNow conducted a nationally representative quantitative survey. The survey highlights consumers’ hopes and anxieties as we move into 2024. Let's unpack the key findings to gain insights about where we stand.
The Internet as a Disruptive Force: How is Economics Affected by the Web
1.
THE INTERNET AS A DISRUPTIVE FORCE
DIGITAL MARKETING
HOW IS ECONOMICS
AFFECTED BY THE WEB
Bruce Ledesma
Digital Marketing Strategist
October 2014
2. BRUCE LEDESMA
Bruce is a big data researcher and speaker and digital
marketing strategist with over 15 years of experience
helping companies position themselves efficiently online. He
has developed work for Coca-Cola FEMSA, AmBev,
Petrobras, Grupo Bimbo, GOL Linhas Aéreas, TAM, Cosan,
Lojas Renner, TIM, VIVO, Bradesco, CSN, Homex,
Maxcom, Marisa, Natura, Net Serviços, Santander,
Sulamérica, TOTVS, and others.
His main activities include developing digital marketing
strategic plans, internet business models, social media
marketing, content/video marketing, SEO, SEM,
professional websites/blogs, and analytics strategy.
Bruce holds a bachelor's degree in Business Administration
from Universidade Mackenzie, an MBA in Digital Marketing
from Fundação Getúlio Vargas, and a specialization degree
in Social Media Marketing from New York University. He has
traveled around the world twice, visiting 40+ countries, and
speaks Portuguese, English, Spanish and Russian.
Contact
bruce@datafy.com.br
@ledesmabruce
br.linkedin.com/in/bruceledesma/
www.datafy.com.br
www.slideshare.net/bruceledesma1
3. ECONOMICS IN THE 19TH AND 20TH CENTURIES
HENRY FORD’S T-MODEL
“You can choose any color, as long
as it is black”
DURING 200 YEARS
IT WAS ALL ABOUT UNIVERSALS
MASS PRODUCTION
The single best way of offering a
product or a service
ECONOMIES OF SCALE
> Economically feasible
> Assembly line (lower cost)
> Prices affordable for the general public
HOW HAPPY WERE WE
WITH UNIVERSALS ?
4. THE REVOLUTION
OF THE END OF THE 20TH CENTURY
UNDERSTANDING
VARIABILITY!
5. WHAT IS ECONOMICS?
“A social science that studies how individuals make
choices on allocating scarce resources
to satisfy their unlimited wants. ”
IT IS A BEHAVIORAL SCIENCE
“INDIVIDUALS” IS THE BIG WORD
CAN WE PRODUCE GOODS AND SERVICES THAT ARE
CUSTOMIZED FOR EACH INDIVIDUAL?
6. CHRIS ANDERSON’S “THE LONG TAIL”
The forces of the web democratize and shift the
control in supply and demand.
8. THE DIFFERENCE BETWEEN PRICE AND VALUE
PRICE
DEFINED BY THE COMPANY
VALUE
DEFINED BY THE CONSUMER
THE WEB IS REDUCING THE GAP
LESS INFORMATION ASSYMETRY
9. INFORMATION ASSYMETRY
information asymmetry deals with the study of decisions in
transactions where one party has more or
better INFORMATION than the other.
This creates an imbalance of power in transactions which can
sometimes cause the transactions to go awry, a kind of market
failure in the worst case.
WEB DRIVES PRICES
MORE COMPETITIVE MARKET
10. NETWORK EFFECT & LOCK-IN
At some point Windows had a 95% market
share because of its ecosystem (users
and partners) and not because of the
software itself. A virtuous circle
iPhone is enriching its ecosystem
through developers who create apps,
making its environment more valuable
than the iPhone itself.
13. FREE: THE FUTURE OF PRICES
TARGETED ADS BASED
USER DATA IS THE NEW CURRENCY!
“THERE’S NO FREE LUNCH”
MILTON FRIEDMAN (1912 – 2006)
ECONOMIC SCIENCES NOBEL PRIZE IN 1976
14. DATA SENSITIVITY & PRIVACY
Sold user data to the government.
Police sent speeding tickets to Tom
Tom users. CEO publicly apologized.
Predicted client pregnancy to market
baby products. Accused of violating
clients’ privacy. Bad press in the U.S.
15. YOU ARE WHAT YOU LIKE
BIRDS OF THE SAME FEATHER
FLOCK TOGETHER
16. HOW IS ECONOMICS AFFECTED BY THE WEB
THE INTERNET AS A DISRUPTIVE FORCE
QUESTIONS?
COMMENTS?
COMPLAINTS?
THANK YOU!
17. BIBLIOGRAPHY
Adolpho, Conrado. Os 8 Ps do Marketing Digital. São Paulo, SP: Novatec Editora Ltda, 2008.
Anderson, Chris. “Free: The Future of A Radical Price”. New York, NY: Hyperion –
HarperCollins, 2009.
Bruce Ledesma
Anderson, Chris. The Long Tail: Why the Future of Business is Selling Less of More. New
York, NY: Hyperion – HarperCollins, 2008.
Digital Marketing Strategist
Gladwell, Malcolm. Choice, happiness and spaghetti sauce. TED 2004.
http://www.ted.com/talks/malcolm_gladwell_on_spaghetti_sauce?language=en
Kosinski, M., Stillwell, D., and Graepel, T. Private traits and attributes are predictable from
digital records of human behavior. Proceedings of the National Academy of Sciences of the
United States of America. http://www.pnas.org/content/110/15/5802.full
Mayer-Schönberger, Viktor and Cukier, Kenneth. Big Data: A Revolution that Will Transform
How We Live, Work, and Think. New York, NY: Houghton Mifflin Harcourt Publishing
Company, 2013.
Newman, Jared. TomTom Caught Selling Speed Data to Dutch Police. PCWorld, 2011.
http://www.pcworld.com/article/226527/TomTom_Caught_Selling_Speed_Data_to_Dutch_Police.html
Siegel, Eric. Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die.
Hoboken, NJ: John Wiley & Sons Inc., 2013
Editor's Notes
During the 19th and 20th centuries humankind was obsessed about “universals”. Question commonly raised were:
What is the most economically efficient way of producing goods and services?
How can we scale up production and bring down costs?
What is the best product or service for everybody?
The question is, “how happy were we with the ‘one-size-fits-all’ model?
The great breakthrough of the 20th century was understanding that there is no such thing as the “best product of service for everyone”
Rather, the question is “what is the best product or service for you?”
Each and everyone has his/her individual preferences. When an individual’s demands are met, the individual is happier.
Not everyone is happy with plain vanilla. There is demand for other flavors.
Because economics is a behavioral science, it is not precise. Each individual wants to satisfy his/her wants. Is one-on-one mass marketing possible?
An iPhone is produced as a standard product from the assembly line, but is it customized into individual products once it is purchased by consumers.
The power of the web enables such phenomenon. No two iPhones are the same because of the different apps installed by each user.
The Long Tail, in a nutshell
“The theory of the Long Tail is that our culture and economy is increasingly shifting away from a focus on a relatively small number of "hits" (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-targeted goods and services can be as economically attractive as mainstream fare.”
~ Chris Anderson, author of the bestseller “The Long Tail: Why the Future of Business is Selling Less of More”.
Amazon.com and iTunes are some of the most successful examples of companies that realized that unlimited shelf space allows them to supply niche markets, in an economically feasible way.
Many brick and mortars businesses (Virgin Records, Tower Records) either went or are going out of business. Brick and mortar will not disappear completely but is surely experiencing substantial transformation because of the disruptive force represented by the internet.
There is a gap between price (set by a company) and value (set by a consumer). When the value is higher than the price, a consumer will buy a product or service.
The internet is reducing this gap between price and value.
With a bigger supply of products and services online and the availability of tools such as price comparison engines, product/service demo videos, consumer reviews, and seller reputation rankings, information asymmetry is being drastically reduced.
These forces are driving prices down, making the market more competitive.
Often, the value of a brand is determined by the size of its ecosystem (network effect). The more players involved in the ecosystem (network), the richer the brand.
Companies attempt to lock the consumer in their ecosystem so that they purchase more of its products and/or services. This becomes a barrier to entry for competitors.
Cloud Technologies are enabling the creation of new business models which create substitute products and services.
Cloud Technologies are expanding fast because of two main factors:
prices for this service are plummeting
they provide superior processing power than regular services (and more data security)
There is great demand for services using cloud technologies which, in certain cases, create bottlenecks in internet services (Netflix)
More and more people are going online.
New business models
“Free: The Future of Prices” by Chris Anderson
Freemium is the original creator of the Free Price model.
Freemium consists of an internet business model in which a small base of users paying for premium services allow a bigger base of users to use a basic version of the service for free.
Again, the value of the service is determined by the size of the ecosystem, in this case made up of paying and non-paying users (people and companies).
Facebook and Google are apparently free services for the users. They make money from advertisements targeted at individuals according to their online behavior and preferences.
However, there is a currency involved, and that is “user data”. Often, data is referred to as the petroleum of the 21st century.
Remember: there is no free lunch. If you are getting a service for free, either someone else’s is paying for it or you are paying in currency other than money.
How OK are you with having companies collecting, compiling, manipulating and reselling data about you and your online behavior?Two Cases Providing Food for Thought
Tom Tom, a GPS company, was losing money because smartphone apps were substituting their GPS devices. In search for other sources of revenue, the company decided to sell anonymous user mobility data to the Dutch government in order to optimize traffic flow. Such information resulted in the creation of speed traps, and Tom Tom users started getting tickets for speeding from the Dutch police. Tom Tom’s CEO had to apologize publicly for such consequence.
Target, one of the largest retailers in the US, devised a predictive analytics system that could predict which clients were pregnant, based on the products they bought. The purpose of the system was to direct marketing materials for baby products early on during each client’s pregnancy. A teenager in her third month of pregnancy started receiving baby product coupons at home, infuriating her father who complained to Target that they were encouraging her to get pregnant. When he later learned her teen daughter was actually pregnant, he apologized to Target. How does this affect the economy? Are these cases of invasion of privacy or not? Where should we draw the line?
According to a study published in February 2012 in the Proceedings of the National Academy of Sciences of the United States, liking “Curly Fries” on Facebook is a predictor of high intelligence. Obviously there is no connection between “Curly Fries” and intelligence and liking “Curly Fries” on Facebook will certainly not make you smarter. However there is correlation. Apparently, the first few people who liked “Curly Fries” were highly intelligent people. And because intelligent people tend to hang around other intelligent people, friends started liking “Curly Fries” as well. This confirms the “birds of the same feather flock together” theory. In other words, people with certain traits tend to present similar online behavior and like the same things on Facebook. Such findings will certainly transform credit and insurance industries, for example. How likely would a health insurance company be able to predict a person’s health condition and discriminate the price of his/her health insurance plan based on his/her online behavior? Would it be ethical to discriminate prices based on user online behavior? These and other questions still remain open. The Psychometrics Centre of the University of Cambridge developed a website (www.youarewhatyoulike.com) in which anyone can submit his/her Facebook likes and get an estimate of his/her personality. Try it. How accurate are the results?