HOW BIG DATA IS CHANGING

LOOKING BEYOND 2015

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The collection of vast amounts of data is helping marketers to understand consumer behavior on an entirely different level. With that information, they are able to assess and identify key findings on their audience and target them better. As a result, they can make more informed decisions on future marketing campaigns, allowing them to be more effective.

However, many marketers across various companies and industries share concerns on how to increase customer engagement and how to increase revenue growth. This is where Big Data analytics comes into play.

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Finding the Right Tech to Handle Big Marketing DataWhile the majority of marketing executives believe that Big Data is extremely important, the concern lies in identifying the right technologies to handle that data, which can also be easily integrated to their current legacy systems. In 2015, 30% of marketers worldwide plan on investing in more data management platforms and 42% in marketing analytics.

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What Marketers Are AnalyzingWith the help of specific kinds of data, marketing analysts can better understand consumer activities and pinpoint new business opportunities. Marketers have shown interest in tracking and visualizing the customer journey, with a particular focus on demographics and data on consumer behavior.

Pulling Big Data Analytics From Big Ad SpendA vast majority of marketing analytics is pulled from data that is collected from marketing campaigns and media advertising. This year alone, marketers worldwide are expected to spend $540 billion on advertising, which shows a growth rate of 5.3%. The growth rate in 2013 was only at 2.6%. This increase in ad spend will prompt marketers to invest more in data analytics.

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Global Ad Spend Leads to Big Data Volume Worldwide Ad spend per person has increased steadily across the globe since 2012. This year, the U.S. is ranked as the top country spending the most on advertising — $589.29 per person, up from $525.55 in 2012. India, on the other hand, is only spending $5.40 this year per person, but still on the rise seeing that their spend is up from $4.37 in 2012. Since this growth means larger amounts of marketing data will likely be produced in the coming years, regional markets may need to better coordinate on their analytics process.

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The Impact of Marketing AnalyticsMarketing analysts across a wide range of industries are seeing the positive impact that Big Data analytics is having on their customer relationships. The travel industry alone saw significant jumps of 67% in customer loyalty and 59% in customer satisfaction with the help of marketing analytics. The energy industry, however, saw smaller growth with only about 10% increase in customer satisfaction.

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By 2017, chief marketing officers will be spending more on information technology, that aid in analytics and data in customer insights, than chief information officers.Source: Forbes, 2014

2017Marketers still recognize the value in Big Data, with 52% of them saying they believe this kind of data helps to identify new business opportunities. There is no denying anymore the power of data analytics and the insights it can offer within the marketing industry.Source: eMarketer, 2014

52%The percentage of budget that was spent on marketing analytics was 7.1% in 2014. This will increase to 12.3% in 2017, signifying the future impact of Big Data on the marketing industry.Source: CMO Council, 2015

12.3%

The State of Marketing Analytics and Where It’s Heading

50% of companies are struggling with how to efficiently analyze marketing data, especially from multiple social media channels. This may be a result of not having the proper visualization tools or simply not having an organized way to collect data.Source: eMarketer, 2014

50%

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Interpreting the right findings within the wealth of marketing data that is produced.

Presenting the data in a cross-functional manner that helps other departments within their companies understand the numbers behind their marketing strategies.

Connecting combined data on customer information to find insights on the performance of campaigns.

Having a good customer segmentation framework for marketing data collected.

Providing enrichment and visualization of data collected from marketing campaigns.

Visualizing and sharing marketing data through various charts and infographics, which will clearly display insights found within the data.

Connecting to multiple data sources on customer information to find insights on the performance of campaigns.

Segmenting marketing/customer data into groups in order to recognize growth and change trends into opportunities.

Challenges for Marketing Analysts and Marketers

Marketing analysis requires: Solutions that SAP Lumira delivers:

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