After the Land Grab: 10 Trends Shaping Big Data’s Next StageJonathan MarguliesManaging Director

January 23, 2013OMMA DDM • New York,

NY

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After the Land Grab

Our Agenda

• The Data “Market”: Four Evolving Paradigms

• 10 for ‘13: Trends Shaping Big Data’s Next Stage

“What Is Data?” Depends on Your Perspective…

Targeting

Audience InsightsVs.

“What Is Data?” Depends on Your Perspective…

Anonymous

Personally-IdentifiableVs.

“What Is Data?” Depends on Your Perspective…

CreepyRelationship-EnrichingVs.

“What Is Data?” Depends on Your Perspective…

“Big”

EstablishedVs.

If Only We Could Illustrate The “Big Data” Opportunity…

Sources: Asigra, Century Link, Forbes/Dave Feinleib, HortonWorks, IBM, Jaspersoft, NetApp, Sybase, Wikibon, Wipro

In the Media and Marketing Worlds, A Frenzy of “Big Data” Investment Has Three Constituencies Vying for a Piece of the Pie

“The Buyers”: Marketers, Advertisers, Publishers

Shared Goals: Activation, Engagement, Value

“The Intermediaries”: Agencies, Exchanges, Ad Tech & Service Providers

“The Sellers”: Publishers, Compilers, Researchers

But One Challenge Persists: Striking an “Omnichannel” Balance with Costly (But Effective) Traditional Data Infrastructure

(1) Includes retargeting services, intent/inferred data,offline data used for online marketing(2) Includes e-mail lists, database management/hygieneand analytics services(3) Includes mailing lists, database management/hygieneand analytics services

U.S. Spending, Targeted Marketing Data & Related Services (2010-2014E)

Online Display-Related Data Spending1

E-mail-Related Data Spending2

Direct Mail-Related Data Spending3

Online Display-Related Data Spending1

E-mail-Related Data Spending2

Direct Mail-Related Data Spending3

Source: Winterberry Group analysis of various sources

Total:$9.96 BB

Total:$11.31 BB

Total:$11.57 BB

94.7%

2.4%2.9%

90.0%

3.9%6.1%

Email Spending

Display Spending

Direct Mail Spending

Email Spending

Display Spending

Direct Mail Spending

Source: Winterberry Group analysis of various sources

2010 2012 2014E

$1.4 BB

$44.9 BB

+57.1%

+109.1%

Total:$56.2 BB

Total:$60.7 BB

Total:$68.1 BB

U.S. Spending, Targeted Marketing Media(2010-2014E)

How (and When) Will Data Dollars Align with Top-Line Spending?

$9.9 BB

-0.7%

We’re Now Emerging from “Big Data 1.0”: A Land Grab for Information and Resources (Without the Benefit of Vision, Experience or Insight)

After the Land Grab

Our Agenda

• The Data “Market”: Four Evolving Paradigms

• 10 for ‘13: Trends Shaping Big Data’s Next Stage

The Use Cases Emerge: Something to Do With All That (Digital) Data…

• Centerpiece applications finally emerging across the ecosystem• Few deploying substantial (or

even equal) resources across all addressable use cases; investments reflect legacy needs rather than systematic data strategy

“How Important Will the Following Use Cases Be to Your FutureData-Driven Marketing Efforts?”

Source: Winterberry Group survey,Jan. 2012

Not likely to be a focus of our future data utilization

Likely to be a significant focus of our future data

utilization

The Talent Gap: What Good is the Data if Nobody Understands It?

• Acute shortage of analytics/ technical staff with marketing perspective inhibiting data investment• “All marketers are

technologists”: Up for debate? Or just a matter of time?

Organizations Lack the Necessary Analytic and Technical Skills Internally; Have Trouble Recruiting

“How would you rate the analyticcapabilities of your company today?”

78%

“How challenging is it for your companyto source analytical skills?”

Impossible

Very difficult

Challenging

Somewhat

challenging

No issue 0%

76%

Source: NewVantage Partners: “Big Data Executive Survey,” 2012

The Process Gap: Many Still Trying to Force New-World Information Through Old-World Pipes

• Infrastructure built to support traditional media commonly “engineered” to address fundamentally different execution needs• The silo conflict: competing

interests with respect to data, rights, budgets, authority, creative assets, etc.

73% 71%63%

56% 55%

44%38%

32%

15%

Internal process and marketing

operations hurdles

No clear internal owner for DMP

solution

No clarity into the role of DMPs

in the C-suite

Lack of established performance

metrics

Lack of clear business case /

ROI expectations

Concerns about privacy, security

and data governance

Concerns over cost

Lack of addressable data to fuel DMP use

Prefer to wait for next

generation technology

Source: Winterberry Group, November 2012

“Which issues would you describe as ‘major hurdles’inhibiting faster DMP deployment?”

Internal Operating Challenges (and Neither Data nor Technology) Are the Real Barriers to Wider Data Integration

The Big Data Death Match: Marketing, IT Vie for Influence Over Critical Information Assets (and Marketing Might Just Win)

• At the heart of Big Data evolution: a competition for authority between marketing, brand management and IT • One likely solution: the

emergence of a dedicated marketing technology function (possibly aligned with the chief data officer)

“Minor” Internal Conflicts Can Give Rise to Substantial Long-Term Costs (Among Them: Missed Opportunity)

51%45% 42% 39%

29%

The lack of sharing data across the

organization is an obstacle

We aren't using our data to effectively

personalize messaging

We are not able to link our data at the level of individual

customers

Our data is collected too infrequently or is not real-time enough

We have too little customer or consumer

data

“What are your biggest challenges in using ‘Big Data’ for marketing?”

Source: Columbia Business School, NYAMA: “Marketing ROI in the Era of Big Data,” 2012

The “Omnichannel” Imperative: Engaging Customers Across Screens Becomes a Need-to-Have

• Consumers’ embrace of mobile, social and other media raising the bar for marketers to deliver seamless engagement• The dilemma: attribution,

campaign management, execution approaches still reflect “last-click,” single-channel sensibility

The Prerequisite: Effective Multi-Platform Attribution

Why Pursue BetterAttribution?

Source: eConsultancy and Google Analytics,Marketing Attribution: “Valuing the Customer Journey,” 2012

Though only 14% of marketers think last-click

attribution is “very effective,” 54% use the

same as their primary performance metric

In the Line of (Regulatory) Fire: If We’re All Buying and Selling Information, Just Who Exactly is a “Data Broker”?

• Growth of data-driven economy focusing regulator attention on marketplace; “data brokers” under current FTC investigation• Good questions: What is right

level of transparency, choice? How to best deliver both?• Bad question: “Who owns

data?”

Largely Underreported: The Consumer Benefits That Come with Responsible, Transparent Data Deployment

Source: The New York Times, “You for Sale,” June 16, 2012

The DMP at Center Stage: Big (Marketing) Data Demands Custom Tools to Meet Scale, Speed, Modularity Needs

• Originally developed to solve an organic challenge—“How to access audience segments from third parties?”—DMPs now serving as effective hub for data integration, activation• Growth driven by organizational

needs—not inherent complexity of data or technology

The DMP Aggregates, Integrates, Manages and Deploys Disparate Data

Interest in DMP Solutions is Substantial—And Growing Rapidly

“What type of role do you think DMPs are likely to play in expanding the performance

of companies’ long-term advertising and marketing efforts?”

“How would you say that your (or your clients’) interest in DMP solutions has changed over the last several years?”

Source: Winterberry Group, November 2012

Rules of the Road: Stewardship Strategies Emerge as Critical Prerequisite for Data Activation

• Data stewardship strategies emerging as critical “need-to-have” given the growing role of data across the enterprise (and costs associated with its misuse)• Once considered niche legal/

privacy function; now joining the cross-disciplinary marketing mainstream

Artwork Source: OCDQ Blog/Jim Harris, Jill Dyché

Most Marketing Teams Unprepared When it Comes to the Evolving Demands of Marketing Data Stewardship

“Does your company have a specific strategy for handling the challenges of

big data?”

60%

“How prepared is your marketing team with regard to the rules and regulations

of marketing data governance?”

Not Very

Somewhat

Very

Source: DMA/Neolane, “Big Data: Impact on Marketing Organizations,” January 2013

And One Contrary View: The Big Data Bubble is Here

• What if we invested millions of dollars (and millions of man-hours) in information, technology and process changes that… delivered very meager results?• How can we optimize the

chance that our Big Data bets pay off in a meaningful way?

“Big Data” May Ultimately Prove Transformative, But There Will Be Growing Pains as Companies Feel Their Way

Time

Technology Trigger

Peak of Inflated

Expectations

Trough of Disillusionment

Slope of Enlightenment

Plateau of Productivity

Big Data

Does the “hype cycle” provide a useful means of benchmarking the progress of Big (Marketing) Data over the next few years?

Source: Gartner, Hype Cycle for Cloud Computing, August 2012

Or Should We Learn From the Experience of Past Innovation Cycles?

It's as if the plan is roughly:

• Analyze data—preferably Big Data• ???• Profit.

This feels eerily analogous to the dot-com bubble of the late 90s to me (substitute “analyze data” with “capture eyeballs”)… except underneath the hype, a truly major revolution is happening: The real revolution in data will be a change in organizational behavior and culture… creating a [data-driven] organization that can confidently experiment, innovate and adapt on a broad scale

Scott Brinker; January 21, 2013

Toward a “Secret Sauce”: Competitive Differentiation Derived from More Than Just Data Accrual

• Success in the “Big Data 2.0” era will require more than just a data land grab; it demands the synthesis of strategy, customer insight and automated execution• At the end of the day, effective

strategy begins with desired outcomes… which cannot be identified by machine

For A Deeper Dive…

Download at:www.winterberrygroup.com/ourinsights

And Coming Soon…

“Taking Cues from the Consumer:

Omnichannel Comes of Age”

and…

“The New Rules of the Road: Data

Stewardshipin the Era of Big

Data”

Jonathan MarguliesManaging Director

jmargulies@winterberrygroup.com@jcmargulies

60 Broad Street, 38th FloorNew York, NY 10004www.winterberrygroup.com@WinterberryGrp

Thank You!