Beyond the data buzzwords jonathan margulies
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Transcript of Beyond the data buzzwords jonathan margulies
Beyond the Buzzwords:“Big Data” and the New Demands ofRight-Time Marketing Jonathan MarguliesManaging Director
13 November 2012AMDIA Integra 2012
Winterberry Group: Supporting the Growth of Advertising, Marketing, Media, Information and Technology Organizations
Strategic Consulting
• Corporate Strategy
• Market Intelligence
• Process Optimization and Alignment
• M&A Transaction Diligence Support
• Investment Banking Services, through
Beyond the Buzzwords
Our Agenda
• A Brief History of Data
• How is Technology Changing The Way We Use Data?
• What Does the Future Hold in Store?
To Put Things In Context: Today’s “Big Data” Opportunity Is Addressable to Advertisers, Marketers and Publishers Alike
Audience Engagement
• Yield• Advertising
Revenue• Gross Rating
Points• Circulation
The Publisher• Direct Sales
• Performance• Response Rate• ROI
The Marketer• Reach
• Awareness• Brand-Building• Gross Rating
Points
The Advertiser
H. Catalogus
(0-~1980 A.D.)
Name:Address:
The Marketer: In the Beginning, There Were Subscriber Files…
… Which Begat Demographic “Selects,” Data Cards and the First True Commercial Data Models…
NAME ADDRESS
GENDER
INCOME
PHONE
AGE
H. Catalogus
(-~1980 A.D.)
H. Mailinglistus
(~1980s)
… Which Begat Modeling, Segmentation, Coop Databases and—With the Arrival of the Internet—E-mail Data…
H. Catalogus
(-~1980 A.D.)
H. Mailinglistus
(~1980s)
… Which Gave Rise to the Infrastructure—and a Whole Industry of Service Providers—Focused on Data Compilation and Management
H. Analyticus (~1990-2000s)
“Customer File”: Contact Info, CRM,
Demographics
“Prospect File”: Demographics, Credit
Scores
Transactional / Loyalty Records
Public Records
Self-Reported “Intent” Data
Persistent Identifiers
Interactions Logs
“Single Source of the Truth”
Mr. John Q. CustomerOne Response Rate WayNew York, NY 10001
The Advertiser: For Many Years, “Data” Was Whatever The Agency (or the Media Provider) Said It Was
“At the turn of the 20th century, publishers fought a fiercely competitive battle. Using circulation figures as weapons, publishers won advertising dollars by flooding the marketplace with false and misleading circulation claims...”
Though Resources Would Emerge to Help Define the Size and Structure of Media Consumers, Old Buying Models Persist
And advertisers generally haven’t been aggressive in seeking “audience accountability,” mostly due to…
•Relationships
•The visibility of massmedia
•Cultural resistancefrom “premium”brand publishers
80% of U.S. Internet
users engage with social media
and blogs
70% of newspaper
readers now
consume content via
digital platforms
84% of online
Americans watch digital video content
53% of Americans
made an online
purchase in 2011
Sources: Forrester Research;Newspaper Association of America; Nielsen
Disrupting Both Models: The Internet
Artwork Source: David Harbaugh,Harvard Business Review
Our Fundamental Problem Isn’t “Not Enough Data”
In Fact, The Growth of “Digital” Has Brought With It a Deluge of New Data Types
Postal Geo-/Demographics“CRM” History/SurveysCatalog/E-Commerce TransactionsRetail Transactions
Print Circulation
Broadcast RatingsEmail Geo-/Demographics
But The Distinctions Between “Established” and “Emerging” Datasets Are Stark
• Structured: Keyed to name and geo-locators
• Media-Centric: Geared to needs of specific channels
• “Slow Spoilage”: Decays at modest pace
• Backed by Experience: Solid understanding of value, use cases, technical requirements
Esta
blish
ed
• Unstructured: Collected via bespoke taxonomies; anonymous with respect to the individual
• Media-Agnostic: Reflects online browsing behavior; useful for drawing wider inferences
• “Fast Spoilage”: Decays at rapid pace
• Still Early Days: Best practices in development
Em
erg
ing
And They’re Compounded By a Series of Secular Marketing Trends, Highlighting the Distinctions Between…
Known Names/Addresses…
… and Anonymous IP Addresses
Mr. John Q. Customer
One Response Rate Way
New York, NY 10001
Focus on “Batch” Campaigns…
… and Real-Time Deployment
Single-Channel Focus…
… and Integrated Marketing
“Customer File”: Contact Info and Demographics
“Prospect File”: CRM Demographics, Credit
Scores
Transactional / Loyalty Records
Public Records
Self-Reported “Intent” Data
H. Digitalus(~2009-Today)
Behavioral (Clickstream)
Intent (Opt-In/Registered and
Inferred)
Web Analytics (Geo-/ Technographic) ?
The Underlying Challenge: “Square Peg” Emerging Data Simply Don’t Fit Into the “Round Holes” Put Forth by Established Infrastructure
Beyond the Buzzwords
Our Agenda
• A Brief History of Data
• How is Technology Changing The Way We Use Data?
• What Does the Future Hold in Store?
Thanks to Our Sponsors and Executive-Level Research Panel
N=163 , surveyed July-Sept. 2012
Marketing Services & Technology Providers:
66%
Publishers:23%
Advertisers/
Marketers:11%
Data Technology Has Evolved Organically—Originally Aimed at Enabling the Aggregation of Anonymous “Third-Party” Digital Data
“Third-Party”
• Other Publishers/Advertisers
• Digital Data Exchanges
• Media Networks
• Commercial Data Compilers
The Data Management Platform (DMP) Emerged Organically to Address a Wide Range of First- and Third-Party Data Sources
“Third-Party” “First-Party”
• Other Publishers /Advertisers
• Digital Data Exchanges
• Media Networks
• Commercial Data Compilers
• In-House Marketing /Advertising
Groups
• Lines of Business /
Internal Data Owners
• “On-site” /Product Owners
• Other Titles (Publishers)
Despite Advances, Interpretations of the Role of the DMP Still Differ
“Makes important
data available in a
central location”
“A tool to ingest and store massive amounts of data”“360-degree view
of our data assets”“Provides a complete view of customers”
“It’s about
audience”
“Take any data source
and make it actionable”
“A ‘Big Data’ activation solution”
“A tool for optimizing interactions”
“Where we push
segments for
media targeting”
The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
77%
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?”
92%
“How would you say that your (or your clients’)
interest in DMP solutions has changed over the last
several years?”
Source: Winterberry Group
Six Primary Use Cases Have Emerged—Defining the Long-Term Role for Data in Advertising, Marketing and Publishing
Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications
Developing Rich, Actionable Audience Segments for Expanded Media Sales
Optimizing the Digital Customer Experience
Use C
ases
Collecting and Managing Independent Feeds of Digital Data
Powering Targeted Online Advertising
Empowering Deeper, More Insightful Customer Analytics
Cu
rren
t Matu
rity
INTERMED.
ADVANCED
INT. (Adopt.)
LOW
LOW
LOW / INT.
Use Case: Collecting and Managing Independent Feeds of Digital Data
Intermediate, but rapidly
trending to Advanced
High
• Collection and integration of disparate streams of digital consumer data—both first-party and third-party
• Enables data management and activation from a central location
• The “master use case”
Maturity Growth Potential
Use Case: Powering Targeted Online Advertising
Advanced High
• Enables the economical, value-oriented purchase of advertising media—as well as optimization of message, creative and offer
• Delivers messaging to “the right audience at the right time” when and where they appear online
Maturity Growth Potential
Use Case: Empowering Deeper, More Insightful Customer Analytics
Intermediate (Adoption) /
Advanced (Maturity)
Moderate
• Powers deeper understanding of consumer behavior, enabling highly accurate audience segmentation and upstream product development
• Strengthens other use cases: enables more sophisticated media buying and selling, better customer experience managementMaturity Growth
Potential
Use Case: Optimizing the Digital Customer Experience
Low Very High
• Enables the recognition of an online visitor, as based on their expressed and inferred interests, previous interactions with a brand and third-party browsing activity
• Informs targeted messaging and creative treatments, with an eye on driving improved relevance
Maturity Growth Potential
Use Case: Developing Rich, Actionable Audience Segments for Expanded Media Sales
Low / Intermediate Moderate / High
• Enables identification of actionable audience segments (based on analysis of their online behaviors and known interests)—allowing media to be valued at a premium
• Powers expansion of those segments by using powerful analysis to identify “lookalike” elements
Maturity Growth Potential
Use Case: Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications
Extremely Low Extremely High
• Enables recognition of an individual across channels—online, on a mobile device, via direct mail or on the e-commerce site—and powers relevant messaging and creative treatments at all touchpoints
Maturity Growth Potential
87% 83% 81%74% 73%
63% 63% 63% 59%54%
Need to improve ad targeting
effectiveness
The shift to "audience buying"
Want more connected customer insights
Emergence of automated
digital media buying
Want to optimize
media buying efficiencies
Need to realize the potential of
cross-channel marketing
Need tools to manage large amounts of
data
Need a strategy for tackling "big
data"
General need to gain
competitive advantage
Need to connect off-/online data in a privacy compliant
way
“Which of these factors are major contributors to growing interest in (and
demand for) DMP solutions?”
Source: Winterberry Group
Interest in Data Platforms Is Being Driven by Widespread Need to Target Audiences Across Media
96% 92%
64%58% 56% 55% 53% 51%
First-party behavioral
Third-party behavioral
Offline Social media Search Mobile Location-based Email
Note: Panelists were asked to select all applicable data typesSource: Winterberry Group
“What types of data are currently managed by DMPs?”
Despite the Long-Term Potential of “Multichannel,” DMPs Today Are Geared Primarily to Support Digital Data Applications
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
“Which issues would you describe as ‘major hurdles’
inhibiting faster data technology deployment?”
The Challenge to Deeper Deployment Isn’t Technology: It’s Internal Operating Barriers
Beyond the Buzzwords
Our Agenda
• A Brief History of Data
• How is Technology Changing The Way We Use Data?
• What Does the Future Hold in Store?
Over the Next 12 to 18 Months… Technology Functionality Will Expand
Over the Next 12 to 18 Months… Analytics Will Become a More Integral Component of the “Data Stack”
Over the Next 12 to 18 Months… Platforms Will Grow More Specialized
Over the Next 12 to 18 Months… Data Will Decouple from Technology
Over the Next 12 to 18 Months… The Landscape of Global Solution Providers Will Consolidate
Over the Next 12 to 18 Months… Advertisers, Marketers and Publishers Will Embark on Process Transformation (with Technology in Mind)
In Summary: The Strategic Alignment of Data and Technology Represents an Opportunity to…
• Unite the interests of advertisers, marketers and publishers
• Present a foundational infrastructure for managing cross-channel customer experience
• Demonstrate the value to be received from other data and technology investments
• Initiate the activation of “big data”—putting the marketer in the driver’s seat for enterprise data strategy
• Make sure we always have enough acronyms to keep us confused!
Jonathan MarguliesManaging Director
www.winterberrygroup.com
Thanks! And Don’t Forget to Download “The DMP: Foundation for Right-Time Marketing”