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6TH Annual Hispanic Advertising & Media Conference

Unlocking Key Insights to Reach
the Hispanic Consumer

                  BIG DATA: How Marketing is going from
                  ‘Mad Men’ to ‘Math Men’
                  Presented by:
                  Oscar Padilla, Vice President of Strategy
                  September 20, 2012
Three Key Points I Want to Make Today



Big Data it’s not just    Big Data is more     Big Data is advancing
“big data”…it’s about a   about Big Analysis   how we market
framework, tools, and     and insights         to Latinos
technology




                                                                   2
Big Data – Understanding the Basics




Potential of terabytes   How quickly does the   All types of data are
to petabytes of data     data move across the   now being captured
                         enterprise when you    (structured,
                         need to make a         semi-structured and
                         decision?              unstructured)



                                                                        3
People to            People to              Machine to
        People               machine                machine

Netizens, Virtual   Archives, medical
                    Devices, digital TV,
                                           Sensors, gps devices,
                                           Bar code scanners,
                                                                   2.9           20         50
Communities,
Social networks,    E-commerce, smart      Surveillance cameras,    million      hours      million
Web logs…           Cards, bank cards,     Scientific research…      Emails,    Of video    Tweets
                    Computers, mobiles..                           Sent every   Uploaded    Per day
                                                                    second      Every min



                                                                                               4
What Type of Data are Marketers Collecting?
 Which of the following kinds of customer data does your marketing
 department collect or have access to?

                Demographics


         Customer transaction


              Customer usage


          Social media content
                                                                                            Offline Data
Social network ties & influence                                                             Digital & Interactive Data


       Mobile phones/devices


                                  0%         10%         20%          30%         40%           50%        60%       70%   80%


                                       Source: 2012 BRITE-NYAMA Marketing in Transition Study



                                                                                                                           5
Big Data Brings Significant Value to Businesses




Source: 2012 University of Texas Austin. Measuring the Business Impacts of Effective Data. In a comprehensive study of more than
150 Fortune 1000 across diverse industries




                                                                                                                                   6
Big Data is Critical to the Bottom Line
     Companies using big data outperformed their respective markets and have
     created sustained competitive advantages




                                             Big Data Leaders   Other Competitors
Source: September 2011, McKinsey & Company



                                                                                    7
How is Big Data & Analytics Applied
Today to Reach Latinos?




                                      8
IT’S NOT... But This is What We’re
Seeing in the Market Place Today…

● Targeting assumptions based on mostly on survey
  and sample methods (i.e. “Latinos over-index on
  mobile usage”)
● Focus on traditional top DMAs
● Campaigns based on brokered list data, often just
  ethnically-coded data
● Stereotype approach; they speak Spanish, consume
  Spanish media, heavy online users…therefore,
  good target
● Little or no cultural relevancy, focus on country of
  origin




                                                         9
‹#›
‹#›
The Value of Insights…Moving from a Data
Commodity to High-Value Assets

  Value
                                                               + Actionable
                                                                 Insights

                                                  + Cultural Filters


                                  + Information

                         + Data

          Touch Points


                                                        Refinement



                                                                        12
A Big Data Approach to Hispanic Marketing




                                            13
How Does it Work?
Data Sources        Data Management & Staging   Insight Solutions
                                                Customer Visualization Application




                                                                 BI Portal
 Luminar Data



                                                                 Customer Data
                                                                 Mash-up
Client Data Files


                                                                 Real-Time
                                                                 Cloud Insights

  3rd Party Data




Unstructured Data    Big Data Analytics



                                                                             14
Where Does Luminar’s Data Come From?
Our Data is aggregated from over 2000 diverse sources




                                ● We aggregate consumer transactional data from loyalty
                                  systems
                                ● Data sources contributed to Luminar include complete
                                  transaction POS files
                                ● Sources also include online transaction data from
                                  retailers such as Amazon.com and Barnes & Noble
                                ● We incorporate data sources that include individual,
                                  household, demographics and lifestyle information

                                                                                         15
Lets Review Examples of Big Data




Denver, CO Voter Analysis   CPG Chicago Market
                            Product Analysis




                                                 16
LUMINAR ANALYTICS EXAMPLE:
DENVER VOTER FILE




                             17
The Power of Voter & Consumer Data

 Public Voter Information                                              Luminar Consumer Behavior Data




                            How we do it: We mash-up voter file
                            against consumer databases and analyze
                            those individuals on political issues to
                            produce actionable insights



                                                                                                 18
Denver Voter File Profile
DENVER VOTERS:
Total of registered voters: 411,256
Hispanic voters: 54,818 (14%)
Luminar Hispanic voters: 55,334 (94%)




Source: Luminar Insight App. 2012 Denver voter file analysis



                                                               19
Denver Hispanic Assimilation




Source: Luminar Insight App. 2012 Denver voter file analysis



                                                               20
Denver Hispanic Assimilation




                                      Based on this insight, registered Hispanic voters are
                                      predominantly Spanish-speaking or at a minimum, bilingual.




Source: Luminar Insight App. 2012 Denver voter file analysis



                                                                                                   21
Denver Hispanic Party Voter Consumption




Source: Luminar Insight App. 2012 Denver voter file analysis



                                                               22
Persona A – Working Mother
             •   My name is Irma Gonzales, and I am a Hispanic female in my mid 30’s.
                 Married with two children, I have lived in New York City for 12 years -
                 however, I do not speak English very well. I am a Democrat, voted 2 times in
                 the last 8 years
             •   During the last three months, I have gone to the supermarket multiple times
                 and spent $200 (per trip) on the products mentioned above.
             •   I also use these opportunities to buy necessities for my children, as well as
                 special treats.




             Communications Strategy
             a) Emotional connections to education
             b) Moderate voter
             c) Predominantly Spanish speaking, deliver communications in
                Spanish
             d) Persuasion / GOTV

                                                                                                 23
Persona B – Luminar Hispanic Insights
              •   I am a proud bilingual Hispanic in my 50’s, with 12 years of residence in Denver.
                   I’m a registered republican, and voted in the last 3 elections
              •   My passion are books, so I spend my free time reading novels.
              •   Usually I buy my books through catalogs, paying with a credit card.
              •   Sometimes, I also get presents for my grandchildren and spend an average of $72
                  each time I place an order.




              Communications Strategy
              a) Super voter, republican.
              b) High acculturation
              c) Protecting Latino family messages…
“GENERIC” CPG BRAND ANALYSIS FOR
CHICAGO MARKET




                                   25
CPG Company Seeking Insights

● Diversified CPG across different brands and categories
● Analysis based on Chicago market
● Data analyzed; 800,000 records
● Client was seeking brand intelligence pertaining:
   - Store and shopper insights
   - Consumer behavioral insights




                                                           26
It’s Starts with Questions About your
Consumer and Shopping Behavior




●   What is the size of their basket purchase?    ●   What is their level of acculturation?
●   How much is spent in groceries per month?     ●   What is their income level?
●   What is the purchase cycle?                   ●   Do they prefer to speak in English or
●   How frequently do they go grocery shopping?       Spanish?
●   What weeks of the month do they usually buy   ●   How many people per household are
    groceries?                                        there?
●   What supermarkets do they shop at?            ●   Where do they live within my trading area?




                                                                                              27
Luminar Insight App Overview
Luminar Insight Apps delivers analytics and insights through an intuitive web-
based portal customized to clients’ needs
 Basket Analysis                           Brand Comparison




 Frequency Purchasing Cycle                Brand Social-demographics Income Level




                                                                                    28
BASKET PURCHASING | helps shed insight into questions such as:
   • What is the size of the basket purchase?
   • How much is spent in groceries per month?
   • What else is in the purchase basket?




Source: “Generic” CPG Brand Analysis | Chicago Market.



                                                                  29
BRAN SOCIALGRAPHICS | helps shed insight into questions such
                                          as:
                                           • Brand is the income level?
                                           • What is the level of acculturation by brand/region?
                                           • What is the brand/income level per household?




Source: “Generic” CPG Brand Analysis | Chicago Market.



                                                                                                         30
How is Client Using Analytics?

Analysis being used to help:
   - Understand in-store behavior for trading area
   - Define micro-targeting strategies based on overall
     purchasing patterns
   - Enhance the multicultural shopping experience by
     targeting more relevant messages
   - Competitive price comparison




                                                          31
Some Final Thoughts…

1) Remember, big data is more than Data. Big Data gives you
   powerful analytic tools for greater accuracy, transparency,
   and predictive power

2) Use more diverse data. More diverse data leads to more
   insights, don’t be married to just one source

3) Solve a real pain point. Think about your core business
   problems and how to solve analyzing big data

4) Big data is about finding meaning and context. In other
   words, reaching actionable insights, connecting the dots




                                                              32
Oscar Padilla, Vice President of Strategy
opadilla@luminarinsights.com
(866)375-4224 office

Please contact me directly to receive a copy of this deck or discuss our services




                                                                                    33

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Hispanic Digital and Print Media Conference 2012 - Oscar Padilla

  • 1. 6TH Annual Hispanic Advertising & Media Conference Unlocking Key Insights to Reach the Hispanic Consumer BIG DATA: How Marketing is going from ‘Mad Men’ to ‘Math Men’ Presented by: Oscar Padilla, Vice President of Strategy September 20, 2012
  • 2. Three Key Points I Want to Make Today Big Data it’s not just Big Data is more Big Data is advancing “big data”…it’s about a about Big Analysis how we market framework, tools, and and insights to Latinos technology 2
  • 3. Big Data – Understanding the Basics Potential of terabytes How quickly does the All types of data are to petabytes of data data move across the now being captured enterprise when you (structured, need to make a semi-structured and decision? unstructured) 3
  • 4. People to People to Machine to People machine machine Netizens, Virtual Archives, medical Devices, digital TV, Sensors, gps devices, Bar code scanners, 2.9 20 50 Communities, Social networks, E-commerce, smart Surveillance cameras, million hours million Web logs… Cards, bank cards, Scientific research… Emails, Of video Tweets Computers, mobiles.. Sent every Uploaded Per day second Every min 4
  • 5. What Type of Data are Marketers Collecting? Which of the following kinds of customer data does your marketing department collect or have access to? Demographics Customer transaction Customer usage Social media content Offline Data Social network ties & influence Digital & Interactive Data Mobile phones/devices 0% 10% 20% 30% 40% 50% 60% 70% 80% Source: 2012 BRITE-NYAMA Marketing in Transition Study 5
  • 6. Big Data Brings Significant Value to Businesses Source: 2012 University of Texas Austin. Measuring the Business Impacts of Effective Data. In a comprehensive study of more than 150 Fortune 1000 across diverse industries 6
  • 7. Big Data is Critical to the Bottom Line Companies using big data outperformed their respective markets and have created sustained competitive advantages Big Data Leaders Other Competitors Source: September 2011, McKinsey & Company 7
  • 8. How is Big Data & Analytics Applied Today to Reach Latinos? 8
  • 9. IT’S NOT... But This is What We’re Seeing in the Market Place Today… ● Targeting assumptions based on mostly on survey and sample methods (i.e. “Latinos over-index on mobile usage”) ● Focus on traditional top DMAs ● Campaigns based on brokered list data, often just ethnically-coded data ● Stereotype approach; they speak Spanish, consume Spanish media, heavy online users…therefore, good target ● Little or no cultural relevancy, focus on country of origin 9
  • 12. The Value of Insights…Moving from a Data Commodity to High-Value Assets Value + Actionable Insights + Cultural Filters + Information + Data Touch Points Refinement 12
  • 13. A Big Data Approach to Hispanic Marketing 13
  • 14. How Does it Work? Data Sources Data Management & Staging Insight Solutions Customer Visualization Application BI Portal Luminar Data Customer Data Mash-up Client Data Files Real-Time Cloud Insights 3rd Party Data Unstructured Data Big Data Analytics 14
  • 15. Where Does Luminar’s Data Come From? Our Data is aggregated from over 2000 diverse sources ● We aggregate consumer transactional data from loyalty systems ● Data sources contributed to Luminar include complete transaction POS files ● Sources also include online transaction data from retailers such as Amazon.com and Barnes & Noble ● We incorporate data sources that include individual, household, demographics and lifestyle information 15
  • 16. Lets Review Examples of Big Data Denver, CO Voter Analysis CPG Chicago Market Product Analysis 16
  • 18. The Power of Voter & Consumer Data Public Voter Information Luminar Consumer Behavior Data How we do it: We mash-up voter file against consumer databases and analyze those individuals on political issues to produce actionable insights 18
  • 19. Denver Voter File Profile DENVER VOTERS: Total of registered voters: 411,256 Hispanic voters: 54,818 (14%) Luminar Hispanic voters: 55,334 (94%) Source: Luminar Insight App. 2012 Denver voter file analysis 19
  • 20. Denver Hispanic Assimilation Source: Luminar Insight App. 2012 Denver voter file analysis 20
  • 21. Denver Hispanic Assimilation Based on this insight, registered Hispanic voters are predominantly Spanish-speaking or at a minimum, bilingual. Source: Luminar Insight App. 2012 Denver voter file analysis 21
  • 22. Denver Hispanic Party Voter Consumption Source: Luminar Insight App. 2012 Denver voter file analysis 22
  • 23. Persona A – Working Mother • My name is Irma Gonzales, and I am a Hispanic female in my mid 30’s. Married with two children, I have lived in New York City for 12 years - however, I do not speak English very well. I am a Democrat, voted 2 times in the last 8 years • During the last three months, I have gone to the supermarket multiple times and spent $200 (per trip) on the products mentioned above. • I also use these opportunities to buy necessities for my children, as well as special treats. Communications Strategy a) Emotional connections to education b) Moderate voter c) Predominantly Spanish speaking, deliver communications in Spanish d) Persuasion / GOTV 23
  • 24. Persona B – Luminar Hispanic Insights • I am a proud bilingual Hispanic in my 50’s, with 12 years of residence in Denver. I’m a registered republican, and voted in the last 3 elections • My passion are books, so I spend my free time reading novels. • Usually I buy my books through catalogs, paying with a credit card. • Sometimes, I also get presents for my grandchildren and spend an average of $72 each time I place an order. Communications Strategy a) Super voter, republican. b) High acculturation c) Protecting Latino family messages…
  • 25. “GENERIC” CPG BRAND ANALYSIS FOR CHICAGO MARKET 25
  • 26. CPG Company Seeking Insights ● Diversified CPG across different brands and categories ● Analysis based on Chicago market ● Data analyzed; 800,000 records ● Client was seeking brand intelligence pertaining: - Store and shopper insights - Consumer behavioral insights 26
  • 27. It’s Starts with Questions About your Consumer and Shopping Behavior ● What is the size of their basket purchase? ● What is their level of acculturation? ● How much is spent in groceries per month? ● What is their income level? ● What is the purchase cycle? ● Do they prefer to speak in English or ● How frequently do they go grocery shopping? Spanish? ● What weeks of the month do they usually buy ● How many people per household are groceries? there? ● What supermarkets do they shop at? ● Where do they live within my trading area? 27
  • 28. Luminar Insight App Overview Luminar Insight Apps delivers analytics and insights through an intuitive web- based portal customized to clients’ needs Basket Analysis Brand Comparison Frequency Purchasing Cycle Brand Social-demographics Income Level 28
  • 29. BASKET PURCHASING | helps shed insight into questions such as: • What is the size of the basket purchase? • How much is spent in groceries per month? • What else is in the purchase basket? Source: “Generic” CPG Brand Analysis | Chicago Market. 29
  • 30. BRAN SOCIALGRAPHICS | helps shed insight into questions such as: • Brand is the income level? • What is the level of acculturation by brand/region? • What is the brand/income level per household? Source: “Generic” CPG Brand Analysis | Chicago Market. 30
  • 31. How is Client Using Analytics? Analysis being used to help: - Understand in-store behavior for trading area - Define micro-targeting strategies based on overall purchasing patterns - Enhance the multicultural shopping experience by targeting more relevant messages - Competitive price comparison 31
  • 32. Some Final Thoughts… 1) Remember, big data is more than Data. Big Data gives you powerful analytic tools for greater accuracy, transparency, and predictive power 2) Use more diverse data. More diverse data leads to more insights, don’t be married to just one source 3) Solve a real pain point. Think about your core business problems and how to solve analyzing big data 4) Big data is about finding meaning and context. In other words, reaching actionable insights, connecting the dots 32
  • 33. Oscar Padilla, Vice President of Strategy opadilla@luminarinsights.com (866)375-4224 office Please contact me directly to receive a copy of this deck or discuss our services 33

Hinweis der Redaktion

  1. We need to modify the cover in a way that we can add a company’s logo or name. Lets also allow for date. I’m not sure how to design this put, I placed a white box for now
  2. I don’t think we need to do anything here
  3. Just creative treatment if needed6/13 – in the DATA; customer and Luminar data
  4. Not sure how to creatively approach this. It is more about the “how we do it” What do you think?