Brad TerrellBrad Terrell

Marketing in Real Time:The Technology

& Data Imperative

“Innovation distinguishes between

a leader and a follower”

– Steve Jobs

SEPTEMBER 20, 2010, 9:34 AM ET

3

SEPTEMBER 20, 2010, 9:34 AM ET

IBM Buys Netezza for $1.7 Billion

Data-centric strategies create valueData-centric strategies create value

Data

Uniquenessis a source of

Uniqueness

CompetitiveAdvantage

is a source of

We made it!We made it!

Marketing and Data Analysis are Intertwined

Digital Exhaustbenefits marketers

“75% of CMOs rearranging their teams in 2011

to keep pace with the demands of digital media”to keep pace with the demands of digital media”

– Chris Stutzman, Forrester Research

“The sexy job in the

next 10 years will

be statisticians” –

Hal Varian, Chief

Economist, Google

10

A+ players

are hard to find

Extracting insights from exploding data volumes

requires new technologies and methodologies

Extracting insights from exploding data volumes

requires new technologies and methodologies

What initiated this trend?What initiated this trend?

Sampling can be a good thing…

but not in

digital marketing!

Throwing out impressions

breaks attribution analysis

Massively.

Parallel.Parallel.

Computing.

“The company with

the most data wins”

– Tim O’Reilly

It’s not just about big…

Reducing data latency

creates significant marketing value

Real-time marketing is like being in the

stands instead of watching it on TV later

Increasing consumer power

means the stakes are higher

Relevance:

does not fit all

because one size

The Data Aggregation Problem

Market X: Price/Volume Curve

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

IMP

RE

SS

ION

S P

ER

DA

Y

Price/Volume Forecast Curves Show the Optimal Bid in Each Market:

( ) ( )( )BNBRmax ⋅−

The Bidding Problem

0

0.00 1.00 2.00 3.00 4.00 5.00

CPM Bid

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0.00 1.00 2.00 3.00 4.00 5.00

CPM Bid

PR

OF

IT

Market X: Profit Curve

R = revenue derived from showing ad

B = ad’s bid N(B) = impression volume for bid B as

predicted by P/V Curve

Customer Insight Through Deeper Analysis(The Fastest Climbers Win)

BI Reporting and

Ad-Hoc Analysis

Predictive

Analytics

Optimization

• What happened?

• When and where?

• How much?

• What will happen?

• What will the impact be?

• What is the

best choice?