Data driven big data

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Data driven big data



2. 28CHAPTER 2DATA-DRIVEN MARKETING 3. CH 2 : DATA-DRIVEN MARKETING 29DAVE MORGANCEO, SIMULMEDIADave Morgan is the CEO andfounder of Simulmedia. Hepreviously founded and ran bothTACODA, Inc., an online advertisingcompany that pioneeredbehavioral online marketing andwas acquired by AOL in 2007 for$275 million, and Real Media, Inc.,one of the worlds first ad servingand online ad network companiesand a predecessor to 24/7 RealMedia (TFSM), which was latersold to WPP for $649 million.After the sale of TACODA, Morganserved as Executive Vice President,Global Advertising Strategy, atAOL, a Time Warner Company(TWX). He serves on the boardsof the International Radio andTelevision Society (IRTS) and theAmerican Press Institute (API), andwas a long-time member of theexecutive committee and boardof directors of the InteractiveAdvertising Bureau (IAB).MATT SPIELMANSVP OF STRATEGY, MOXIEMatt Spielman is the SVP ofStrategy for Moxie, a full-servicedigital advertising agency withinthe Publicis Groupe. He headsthe digital AOR and leads thestrategy and innovation initiativesfor LOreal USA. Prior to joiningMoxie, Spielman spent six yearsat MTV Networks where hehelped build the networks ClientSolutions Division, working withsenior marketing clients to developand deploy marketing initiativesthat leveraged the entirety ofMTV Networks properties, brandsand assets across all media. Healso served as Vice Presidentof Business Development andAccount Management at IAGResearch (acquired by Nielsen). AtIAG, he oversaw a research teamthat advised senior marketingexecutives and their agencies onthe effectiveness of their TV andin-theatre marketing efforts andmade recommendations on how toimprove their results.BRYAN SCANLONPRESIDENT, SCHWARTZMSL AND NORTH AMERICATECHNOLOGY DIRECTOR,MSLGROUPBased in Silicon Valley, BryanScanlon is the president ofSchwartz MSL, a global publicrelations agency specializing inthe technology, health and energyinnovations that transform business,preserve the planet and save lives.He also leads the MSLGROUP NorthAmerica Technology Practice,helping clients move innovation tothe forefront of their brands, andspecializes in information security,big data and analytics, and data-driventhought leadership andmarketing programs. Scanlonhas a 20-year track record ofbuilding awareness, valuation,sales and brand equity for someof the most successful technologycompanies. Hes taken manyclients from start-up to marketleadership and reinvigoratedestablished technology brands.This includes work with Red Hat,Netezza, Symantec, ServiceNow,Hortonworks, Blue Coat,webMethods (now SoftwareAG), Imation, LifeLock, ESETand MicroStrategy. You can followhim on Twitter @bkscanlon.ROB JAYSONCHIEF DATA OFFICER,ZENITHOPTIMEDIARob Jayson leads ZenithOptimediasworldwide data strategy, a role heassumed in 2012. A combinationof continual innovation, robustanalytics and tools developmenthave allowed him to beinstrumental in finding new andexciting ways to approachcommunications planning. AsChief Data Officer, Rob overseesthe agencys Global AnalyticsCenter (GLANCE), collaboratingwith ZO entities such as Ninah,Performics and Moxie. He alsomanages the implementation ofthe ZO Datamart and reportingtools suite, and focuses on brand-specificdata strategies, such asZenithOptimedias Live ROI. Mostrecently, Rob served as Presidentof Strategy for Zenith where hewas responsible for developingcommunication planningmethods, ensuring planners ledtheir clients and the industry increating unique and powerfulcommunication strategies. 4. CH 2 : DATA-DRIVEN MARKETING 31INTRODUCTION PART 1 :THE RISE OF BIG DATAThe world is awash in data. Everytime a consumer uses a creditcard, a purchase-history is created.Loyalty programs grant companiesand retailers access to consumerspurchase patterns and preferences.Every mouse click leaves a trailto follow. We know more aboutconsumers than ever before, andthey know more about us.All of this data can be empowering,or it can be daunting. Moreinformation means greater insights,smarter thinking and betterdecisions all around. But withnew data coming in every day, wecan become subject to analysisparalysis, delaying decisions andprograms until we get the mostinformation possible, to be surewere making the right decisions.The key is for us to recognize thatdata is not information, nor isinformation the same as insights.Instead, we have to process datato reveal insights on a timely basisthat can be actionable.Fifteen years into the InformationAge, were just figuring out whatit all means. We have access tomore data and information thanever before, but were still tryingto figure out what informationis good and what is bad. Whatinformation is truly effective atincreasing our ROI, and what isjust more white noise? Wereonly now beginning to understandwhat works and what doesnt. Buteven as we do, more informationis presented to us, sometimesreinforcing our marketingprograms. Sometimes, it requiresthem to change completely, on amoments notice. The need to benimble, agile and flexible has neverbeen greater.We have reached a point wherethe art of marketing and thescience of data are completelyintertwined, and are ever moreinseparable. Its time to learn howto harness the ever-increasingstreams of information (mobileand social alone are creating alarge number of data sources)and use them to our benefitjustas consumers are doing withthe information they get. Ratherthan making our marketing data-dependent,we need to make itData-Driven.Data has always been a centerpieceof marketing. From decades-oldtechniques such as consumerresearch surveys, productpurchaser panels and customerrelationship marketing to newer,financial-market approacheslike time-series modeling, chiefmarketing officers have alwayslooked to data and analytics todrive their decision-making.In the modern age, however, twocritical changes are transformingthe marketing landscape in wayswe could not have imagined. First,there has been a huge increase ofavailable data to track consumerattitudes and behaviors in realtime. Second, we as marketershave increased our ability to blendand filter that mass of data intoactionable insights that shapemarketing campaigns at thestrategic and the tactical level.The explosion in consumer datais massive and exponential.According to the McKinsey GlobalInstitute, the volume of consumerinformation generated in a yearhas exceeded six exabytes. Thatnumber one that we cannot evenreally define would fill more than60,000 U.S. Libraries of Congress.Its more than every word spokenby humans if they were to bedigitized as text. 1Thats what consumers and datacompanies are producing andstoring every year. According toMcKinsey, The increasing volumeand detail of information capturedby enterprises, together with therise of multimedia, social media,and the Internet of Things will fuelexponential growth in data for theforeseeable future. 2Data, while exploding, is becomingeasier to manage, combine andevaluate. Martin Hilbert andPriscila Lpez in Science magazineanalyzed global storage andcomputing capacity, and found thatnot only is our ability to accumulateand store data growing, but storagecapacity has become almostexclusively digital (as opposedto analog). 31 McKinsey Global Institute, Big data: The next frontier for innovation, competition,and productivity, June 20112 Ibid.3 Hilbert and Lopez, The worlds technological capacity to store, communicate,and compute information, Science, 2011DATA STORAGE HAS GROWN SIGNIFICANTLY, SHIFTING MARKEDLY FROMANALOG TO DIGITAL AFTER 2000Global installed, optimally compressed, storageOverallExabytes100%=DigitalAnalogDetail% : exabytes54257529594103311986 1993 2000 20073002502001501005001986 1993 2000 2007NOTE: Numbers may not sum due to rounding.SOURCE: Hilbert and Lpez, The worlds technological capacity to store, communicate,and compute information. Science, 201169799 5. CH 2 : DATA-DRIVEN MARKETING 33This change in capacity anddigitization of data storage hashuge implications. We now havea window into consumers livesand almost every aspect of theirrelationship that they build withthe brands we market to them.We also have the potential tomanipulate, match and managethat mass of data in almostlimitless ways. (See Sidebar:Are you prepared?)We all know the era of Big Data isupon us. Yet, many in the industryare still unprepared. A recent IBMCMO survey showed that whileCMOs understand in no uncertainterms how critical Big Data is totheir future success many admitthey have yet to find the correcttechniques and managementapproaches. Forrester, meanwhile,surveyed business decision-makersabout what they viewedas their most critical challengein putting Big Data to useeffectively. The responses wereall over the map, and the fact thatthere was little consensus showsthat each organization needs toset its own priorities about how totackle Big Data.However, no task is more essentialthan to examine all of the potentialissues that could be resolvedwith the help of Big Data andprioritize them. The most criticaland beneficial step that any brandleader can take, in order to startthe process of harnessing thepower and insights of Big Data, isto establish a data strategy and aset of key performance indicators(KPIs) that outline in detail thedirection of insights that areneeded from data analysis in orderto increase marketing ROI.The systems and data prioritiesthat are established will clearlybe significantly different if theorganizations top Big Data priorityis about the ability of the internalorganization to share data in realtime as opposed to a primarychallenge of not getting access toreal-time data at all.SIDEBAR :ARE YOU PREPARED?TABLE 2Biggest challenges to use of big data for marketing29%51%39%The lack of sharing data across our organization isan obstacle to measuring the ROI of our marketing42%45%We have too little or nocustomer/consumer dataOur data is collected too i