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WHY	
  DIGITAL	
  ANALYTICS?
Raymond	
  Chau	
  
Nov	
  2013

1
About	
  me
• Building	
  web	
  site	
  for	
  10	
  years	
  
• Working	
  in	
  isobar,	
  a	
  full	
  serviced	
  digital	
  agency	
  around	
  the	
  globe	
  
• My	
  blog:	
  http://www.whymeasurethat.com

2
WHAT	
  IS	
  DIGITAL	
  ANALYTICS?

3
What	
  is	
  digital	
  analytics?

“Collect	
  and	
  use	
  data	
  to	
  make	
  things	
  better”

4
How	
  do	
  we	
  collect	
  data?
Data

PRIVATE	
  Data

logs	
  

tracking	
  

(e.g.	
  server	
  logs) (e.g.	
  Google	
  Analytics)

survey	
  

(e.g.	
  iPerception)

PUBLIC	
  Data

free	
  

(e.g.	
  Google	
  Trends,	
  forums)

paid	
  

(e.g.	
  Hitwise,	
  Compete)

5
Example:	
  Google	
  Analytics
Free	
  tool	
  offered	
  by	
  Google	
  to	
  monitor	
  
user	
  activities	
  on	
  their	
  web	
  sites	
  or	
  
mobile	
  apps

6
Example:	
  Facebook	
  Insight
Allows	
  developers	
  and	
  Page	
  owners	
  
to	
  see	
  how	
  their	
  app	
  /	
  page	
  perform

7
Example:	
  Google	
  Trends
Public	
  available	
  data	
  that	
  allows	
  user	
  to	
  see	
  how	
  a	
  
particular	
  search-­‐term	
  performs	
  over	
  a	
  time	
  period	
  
on	
  different	
  regions

8
Example:	
  TripAdvisor
Forum	
  is	
  one	
  of	
  the	
  best	
  (and	
  mostly	
  free)	
  source	
  
of	
  qualitative	
  data	
  from	
  your	
  customers!	
  See	
  how	
  
honest	
  are	
  they!!

9
WHAT	
  CAN	
  DIGITAL	
  ANALYTICS	
  DO?

10
Improve	
  advertising	
  spending	
  effectiveness
ROI	
  can	
  be	
  calculated	
  and	
  see	
  which	
  
channel	
  is	
  more	
  effective

11
Fix	
  the	
  entrance	
  of	
  the	
  site
75%	
  of	
  visitors	
  immediately	
  leave	
  the	
  site	
  
after	
  seeing	
  the	
  page.	
  What’s	
  wrong?

12
Optimize	
  check	
  out	
  process
Only	
  36%	
  people	
  checkout	
  after	
  
adding	
  things	
  to	
  cart,	
  what’s	
  
wrong?

Where	
  do	
  people	
  go	
  if	
  they	
  quit	
  
from	
  billing	
  page?	
  Are	
  they	
  looking	
  
for	
  shipping	
  details?

13
Experimenting	
  (A/B	
  Testing)

14
Personalisation	
  
• Movie:	
  Minority	
  Report	
  (2002)

15
Personalisation




e.g.	
  email	
  marketing	
  using	
  user	
  behaviour	
  data	
  

16
Personalisation

e.g.	
  recommendations	
  based	
  on	
  purchase	
  history	
  data

17
Personalisation
e.g.	
  advertisement	
  based	
  on	
  facial	
  expression	
  data


http://www.cenique.com/cenique/advertising_Platform.php

18
Recommendations
Provide	
  recommendations	
  using	
  crowd-­‐sourced	
  data	
  (e.g.	
  Netflix,	
  Amazon)

19
Re-­‐marketing	
  /	
  re-­‐targeting

4.	
  visitor	
  goes	
  back	
  to	
  
your	
  site	
  because	
  of	
  the	
  
promo,	
  and	
  may	
  possibly	
  
purchase
3.	
  visitor	
  goes	
  to	
  a	
  popular	
  
site,	
  promotional	
  ad	
  
targeted	
  to	
  the	
  product	
  
the	
  visitor	
  just	
  read	
  is	
  
displayed

1.	
  visitor	
  enters	
  your	
  site

2.	
  visitor	
  doesn’t	
  buy	
  
anything	
  and	
  leaves,	
  but	
  you	
  
know	
  he	
  has	
  seen	
  a	
  
particular	
  product	
  and	
  put	
  it	
  
into	
  the	
  cart

20
TRADITIONAL	
  MARKETING	
  V.S.	
  DIGITAL	
  MARKETING

21
Measurability

Traditional	
  

Digital	
  

• Very	
  difficult	
  to	
  measure	
  
• Can	
  be	
  very	
  expensive	
  to	
  measure	
  
• Cannot	
  measure	
  how	
  viewers	
  engage	
  
with	
  the	
  content

• Very	
  easy	
  to	
  measure	
  	
  
• Almost	
  free	
  to	
  measure	
  
• Can	
  measure	
  how	
  viewers	
  engage	
  or	
  even	
  
interact	
  with	
  the	
  content

!

!

22
Message	
  Delivery

Traditional	
  

Digital	
  

• Message	
  deliver	
  to	
  as	
  many	
  audiences	
  
as	
  possible	
  
• Have	
  no	
  knowledge	
  on	
  audiences	
  
• Less	
  likely	
  to	
  respond

• Message	
  deliver	
  only	
  to	
  your	
  target	
  audiences	
  
• Know	
  who	
  the	
  audiences	
  exactly	
  are	
  
• More	
  likely	
  to	
  respond	
  as	
  the	
  message	
  is	
  
relevant	
  

!

!

23
Example:	
  Non-­‐target	
  ad	
  v.s.	
  target	
  ad

Non-­‐target	
  Ad	
  -­‐	
  TV	
  	
  

Target	
  Ad	
  -­‐	
  Facebook	
  

• Can’t	
  target	
  audiences	
  that	
  are	
  really	
  
relevant	
  to	
  your	
  product	
  
• For	
  example,	
  you	
  can’t	
  target	
  those	
  
who	
  really	
  have	
  acne	
  problems	
  

• Can	
  target	
  visitors	
  in	
  finest	
  level	
  	
  
• For	
  example,	
  you	
  can	
  target	
  based	
  on	
  
country,	
  city,	
  gender,	
  age	
  range,	
  interests,	
  
etc

!

!

24
Speed

Traditional	
  

Digital	
  

• Data	
  takes	
  time	
  to	
  collect	
  and	
  analyse	
  
• Cannot	
  respond	
  to	
  audience	
  
immediately	
  	
  
• Marketers	
  spend	
  longer	
  time	
  +	
  more	
  
money	
  to	
  get	
  insights	
  and	
  adapt

• Data	
  are	
  collected	
  or	
  even	
  processed	
  at	
  
real	
  time	
  	
  	
  
• Can	
  respond	
  and	
  give	
  tailored	
  response	
  
to	
  audience	
  real	
  time	
  
• Allows	
  marketers	
  to	
  fail	
  cheap	
  and	
  fast

!

!

25
LATEST	
  TOPIC	
  ON	
  DIGITAL	
  ANALYTICS

26
BIG	
  DATA!!!
Abacus


(old	
  method)

Calculator	
  

(new	
  method)

Calculation

Excel


(old	
  method)

Big	
  Data


(new	
  method)

Data	
  Storage	
  &	
  
Analysis

27
We’re	
  generating	
  more	
  and	
  more	
  data
• Example:	
  facebook	
  
• 699	
  million	
  people	
  login	
  Facebook	
  daily	
  
• 300	
  million	
  photos	
  are	
  uploaded	
  daily	
  
• Every	
  60	
  seconds	
  
• 510	
  comments	
  are	
  posted	
  
• 293,000	
  statuses	
  are	
  updated	
  
• 136,000	
  photos	
  are	
  uploaded

28
Example:	
  Obama	
  2012	
  election	
  campaign

• Collect	
  1	
  database	
  that	
  factors	
  80	
  pieces	
  of	
  information	
  about	
  voters:	
  

(e.g.	
  age,	
  race,	
  sex	
  and	
  even	
  voting	
  history)	
  
• Target	
  right	
  audience:	
  focus	
  on	
  voters	
  who	
  might	
  change	
  their	
  mind	
  based	
  on	
  voters’	
  ‘persuasive	
  
score’	
  
• Personalisation:	
  deliver	
  policy	
  messages	
  or	
  fund	
  raising	
  event	
  tailored	
  for	
  individual	
  voters
29
Example:	
  Disneyland
1.	
  Opt-­‐in	
  for	
  a	
  wireless	
  
tracking	
  bracelet	
  
‘MagicBand’	
  which	
  
links	
  to	
  the	
  system	
  My	
  
Magic+

3.	
  Mickey	
  Mouse	
  now	
  
knows	
  a	
  lot	
  about	
  YOU!!!

2.	
  Visitors’	
  real	
  time	
  
location,	
  riding	
  patterns	
  &	
  
purchases	
  are	
  all	
  recorded
30
SUMMARY

31
Data:	
  to	
  use	
  or	
  not	
  to	
  use?
TARGET	
  ad	
  reveals	
  teen’s	
  pregnancy	
  
http://bit.ly/1b3u5k5	
  

32
Want	
  to	
  know	
  more?
Google	
  +	
  page	
  
+RaymondChau

facebook	
  fan	
  page

WhyMeasureThat

ME

LinkedIn	
  
linkedin.com/in/raymondchau

blog	
  
www.whymeasurethat.com	
  

twitter	
  
@raymondchau

33
THANK	
  YOU!

34

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Why digital analytics?

  • 1. WHY  DIGITAL  ANALYTICS? Raymond  Chau   Nov  2013 1
  • 2. About  me • Building  web  site  for  10  years   • Working  in  isobar,  a  full  serviced  digital  agency  around  the  globe   • My  blog:  http://www.whymeasurethat.com 2
  • 3. WHAT  IS  DIGITAL  ANALYTICS? 3
  • 4. What  is  digital  analytics? “Collect  and  use  data  to  make  things  better” 4
  • 5. How  do  we  collect  data? Data PRIVATE  Data logs   tracking   (e.g.  server  logs) (e.g.  Google  Analytics) survey   (e.g.  iPerception) PUBLIC  Data free   (e.g.  Google  Trends,  forums) paid   (e.g.  Hitwise,  Compete) 5
  • 6. Example:  Google  Analytics Free  tool  offered  by  Google  to  monitor   user  activities  on  their  web  sites  or   mobile  apps 6
  • 7. Example:  Facebook  Insight Allows  developers  and  Page  owners   to  see  how  their  app  /  page  perform 7
  • 8. Example:  Google  Trends Public  available  data  that  allows  user  to  see  how  a   particular  search-­‐term  performs  over  a  time  period   on  different  regions 8
  • 9. Example:  TripAdvisor Forum  is  one  of  the  best  (and  mostly  free)  source   of  qualitative  data  from  your  customers!  See  how   honest  are  they!! 9
  • 10. WHAT  CAN  DIGITAL  ANALYTICS  DO? 10
  • 11. Improve  advertising  spending  effectiveness ROI  can  be  calculated  and  see  which   channel  is  more  effective 11
  • 12. Fix  the  entrance  of  the  site 75%  of  visitors  immediately  leave  the  site   after  seeing  the  page.  What’s  wrong? 12
  • 13. Optimize  check  out  process Only  36%  people  checkout  after   adding  things  to  cart,  what’s   wrong? Where  do  people  go  if  they  quit   from  billing  page?  Are  they  looking   for  shipping  details? 13
  • 15. Personalisation   • Movie:  Minority  Report  (2002) 15
  • 16. Personalisation 
 e.g.  email  marketing  using  user  behaviour  data   16
  • 17. Personalisation e.g.  recommendations  based  on  purchase  history  data 17
  • 18. Personalisation e.g.  advertisement  based  on  facial  expression  data
 http://www.cenique.com/cenique/advertising_Platform.php 18
  • 19. Recommendations Provide  recommendations  using  crowd-­‐sourced  data  (e.g.  Netflix,  Amazon) 19
  • 20. Re-­‐marketing  /  re-­‐targeting 4.  visitor  goes  back  to   your  site  because  of  the   promo,  and  may  possibly   purchase 3.  visitor  goes  to  a  popular   site,  promotional  ad   targeted  to  the  product   the  visitor  just  read  is   displayed 1.  visitor  enters  your  site 2.  visitor  doesn’t  buy   anything  and  leaves,  but  you   know  he  has  seen  a   particular  product  and  put  it   into  the  cart 20
  • 21. TRADITIONAL  MARKETING  V.S.  DIGITAL  MARKETING 21
  • 22. Measurability Traditional   Digital   • Very  difficult  to  measure   • Can  be  very  expensive  to  measure   • Cannot  measure  how  viewers  engage   with  the  content • Very  easy  to  measure     • Almost  free  to  measure   • Can  measure  how  viewers  engage  or  even   interact  with  the  content ! ! 22
  • 23. Message  Delivery Traditional   Digital   • Message  deliver  to  as  many  audiences   as  possible   • Have  no  knowledge  on  audiences   • Less  likely  to  respond • Message  deliver  only  to  your  target  audiences   • Know  who  the  audiences  exactly  are   • More  likely  to  respond  as  the  message  is   relevant   ! ! 23
  • 24. Example:  Non-­‐target  ad  v.s.  target  ad Non-­‐target  Ad  -­‐  TV     Target  Ad  -­‐  Facebook   • Can’t  target  audiences  that  are  really   relevant  to  your  product   • For  example,  you  can’t  target  those   who  really  have  acne  problems   • Can  target  visitors  in  finest  level     • For  example,  you  can  target  based  on   country,  city,  gender,  age  range,  interests,   etc ! ! 24
  • 25. Speed Traditional   Digital   • Data  takes  time  to  collect  and  analyse   • Cannot  respond  to  audience   immediately     • Marketers  spend  longer  time  +  more   money  to  get  insights  and  adapt • Data  are  collected  or  even  processed  at   real  time       • Can  respond  and  give  tailored  response   to  audience  real  time   • Allows  marketers  to  fail  cheap  and  fast ! ! 25
  • 26. LATEST  TOPIC  ON  DIGITAL  ANALYTICS 26
  • 27. BIG  DATA!!! Abacus
 (old  method) Calculator   (new  method) Calculation Excel
 (old  method) Big  Data
 (new  method) Data  Storage  &   Analysis 27
  • 28. We’re  generating  more  and  more  data • Example:  facebook   • 699  million  people  login  Facebook  daily   • 300  million  photos  are  uploaded  daily   • Every  60  seconds   • 510  comments  are  posted   • 293,000  statuses  are  updated   • 136,000  photos  are  uploaded 28
  • 29. Example:  Obama  2012  election  campaign • Collect  1  database  that  factors  80  pieces  of  information  about  voters:  
 (e.g.  age,  race,  sex  and  even  voting  history)   • Target  right  audience:  focus  on  voters  who  might  change  their  mind  based  on  voters’  ‘persuasive   score’   • Personalisation:  deliver  policy  messages  or  fund  raising  event  tailored  for  individual  voters 29
  • 30. Example:  Disneyland 1.  Opt-­‐in  for  a  wireless   tracking  bracelet   ‘MagicBand’  which   links  to  the  system  My   Magic+ 3.  Mickey  Mouse  now   knows  a  lot  about  YOU!!! 2.  Visitors’  real  time   location,  riding  patterns  &   purchases  are  all  recorded 30
  • 32. Data:  to  use  or  not  to  use? TARGET  ad  reveals  teen’s  pregnancy   http://bit.ly/1b3u5k5   32
  • 33. Want  to  know  more? Google  +  page   +RaymondChau facebook  fan  page
 WhyMeasureThat ME LinkedIn   linkedin.com/in/raymondchau blog   www.whymeasurethat.com   twitter   @raymondchau 33