Data driven big data

1. A GUIDE TO THE 2013
CONSUMER ELECTRONICS SHOW

2. 28
CHAPTER 2
DATA-DRIVEN MARKETING

3. CH 2 : DATA-DRIVEN MARKETING 29
DAVE MORGAN
CEO, SIMULMEDIA
Dave Morgan is the CEO and
founder of Simulmedia. He
previously founded and ran both
TACODA, Inc., an online advertising
company that pioneered
behavioral online marketing and
was acquired by AOL in 2007 for
$275 million, and Real Media, Inc.,
one of the world’s first ad serving
and online ad network companies
and a predecessor to 24/7 Real
Media (TFSM), which was later
sold to WPP for $649 million.
After the sale of TACODA, Morgan
served as Executive Vice President,
Global Advertising Strategy, at
AOL, a Time Warner Company
(TWX). He serves on the boards
of the International Radio and
Television Society (IRTS) and the
American Press Institute (API), and
was a long-time member of the
executive committee and board
of directors of the Interactive
Advertising Bureau (IAB).
MATT SPIELMAN
SVP OF STRATEGY, MOXIE
Matt Spielman is the SVP of
Strategy for Moxie, a full-service
digital advertising agency within
the Publicis Groupe. He heads
the digital AOR and leads the
strategy and innovation initiatives
for L’Oreal USA. Prior to joining
Moxie, Spielman spent six years
at MTV Networks where he
helped build the network’s Client
Solutions Division, working with
senior marketing clients to develop
and deploy marketing initiatives
that leveraged the entirety of
MTV Networks properties, brands
and assets across all media. He
also served as Vice President
of Business Development and
Account Management at IAG
Research (acquired by Nielsen). At
IAG, he oversaw a research team
that advised senior marketing
executives and their agencies on
the effectiveness of their TV and
in-theatre marketing efforts and
made recommendations on how to
improve their results.
BRYAN SCANLON
PRESIDENT, SCHWARTZ
MSL AND NORTH AMERICA
TECHNOLOGY DIRECTOR,
MSLGROUP
Based in Silicon Valley, Bryan
Scanlon is the president of
Schwartz MSL, a global public
relations agency specializing in
the technology, health and energy
innovations that transform business,
preserve the planet and save lives.
He also leads the MSLGROUP North
America Technology Practice,
helping clients move innovation to
the forefront of their brands, and
specializes in information security,
big data and analytics, and data-driven
thought leadership and
marketing programs. Scanlon
has a 20-year track record of
building awareness, valuation,
sales and brand equity for some
of the most successful technology
companies. He’s taken many
clients from start-up to market
leadership and reinvigorated
established technology brands.
This includes work with Red Hat,
Netezza, Symantec, ServiceNow,
Hortonworks, Blue Coat,
webMethods (now Software
AG), Imation, LifeLock, ESET
and MicroStrategy. You can follow
him on Twitter @bkscanlon.
ROB JAYSON
CHIEF DATA OFFICER,
ZENITHOPTIMEDIA
Rob Jayson leads ZenithOptimedia’s
worldwide data strategy, a role he
assumed in 2012. A combination
of continual innovation, robust
analytics and tools development
have allowed him to be
instrumental in finding new and
exciting ways to approach
communications planning. As
Chief Data Officer, Rob oversees
the agency’s Global Analytics
Center (GLANCE), collaborating
with ZO entities such as Ninah,
Performics and Moxie. He also
manages the implementation of
the ZO Datamart and reporting
tools suite, and focuses on brand-specific
data strategies, such as
ZenithOptimedia’s “Live ROI.” Most
recently, Rob served as President
of Strategy for Zenith where he
was responsible for developing
communication planning
methods, ensuring planners led
their clients and the industry in
creating unique and powerful
communication strategies.

4. CH 2 : DATA-DRIVEN MARKETING 31
INTRODUCTION PART 1 :
THE RISE OF BIG DATA
The world is awash in data. Every
time a consumer uses a credit
card, a purchase-history is created.
Loyalty programs grant companies
and retailers access to consumers’
purchase patterns and preferences.
Every mouse click leaves a trail
to follow. We know more about
consumers than ever before, and
they know more about us.
All of this data can be empowering,
or it can be daunting. More
information means greater insights,
smarter thinking and better
decisions all around. But with
new data coming in every day, we
can become subject to “analysis
paralysis,” delaying decisions and
programs until we get the most
information possible, to be sure
we’re making the right decisions.
The key is for us to recognize that
data is not information, nor is
information the same as insights.
Instead, we have to process data
to reveal insights on a timely basis
that can be actionable.
Fifteen years into the Information
Age, we’re just figuring out what
it all means. We have access to
more data and information than
ever before, but we’re still trying
to figure out what information
is good and what is bad. What
information is truly effective at
increasing our ROI, and what is
just more “white noise?” We’re
only now beginning to understand
what works and what doesn’t. But
even as we do, more information
is presented to us, sometimes
reinforcing our marketing
programs. Sometimes, it requires
them to change completely, on a
moment’s notice. The need to be
nimble, agile and flexible has never
been greater.
We have reached a point where
the art of marketing and the
science of data are completely
intertwined, and are ever more
inseparable. It’s time to learn how
to harness the ever-increasing
streams of information (mobile
and social alone are creating a
large number of data sources)
and use them to our benefit—just
as consumers are doing with
the information they get. Rather
than making our marketing data-dependent,
we need to make it
Data-Driven.
Data has always been a centerpiece
of marketing. From decades-old
techniques such as consumer
research surveys, product
purchaser panels and customer
relationship marketing to newer,
financial-market approaches
like time-series modeling, chief
marketing officers have always
looked to data and analytics to
drive their decision-making.
In the modern age, however, two
critical changes are transforming
the marketing landscape in ways
we could not have imagined. First,
there has been a huge increase of
available data to track consumer
attitudes and behaviors in real
time. Second, we as marketers
have increased our ability to blend
and filter that mass of data into
actionable insights that shape
marketing campaigns at the
strategic and the tactical level.
The explosion in consumer data
is massive and exponential.
According to the McKinsey Global
Institute, the volume of consumer
information generated in a year
has exceeded six exabytes. That
number – one that we cannot even
really define – would fill more than
60,000 U.S. Libraries of Congress.
It’s more than every word spoken
by humans if they were to be
digitized as text. 1
That’s what consumers and data
companies are producing and
storing every year. According to
McKinsey, “The increasing volume
and detail of information captured
by enterprises, together with the
rise of multimedia, social media,
and the Internet of Things will fuel
exponential growth in data for the
foreseeable future.” 2
Data, while exploding, is becoming
easier to manage, combine and
evaluate. Martin Hilbert and
Priscila López in Science magazine
analyzed global storage and
computing capacity, and found that
not only is our ability to accumulate
and store data growing, but storage
capacity has become almost
exclusively digital (as opposed
to analog). 3
1 McKinsey Global Institute, “ Big data: The next frontier for innovation, competition,
and productivity,” June 2011
2 Ibid.
3 Hilbert and Lopez, “The world’s technological capacity to store, communicate,
and compute information,” Science, 2011
DATA STORAGE HAS GROWN SIGNIFICANTLY, SHIFTING MARKEDLY FROM
ANALOG TO DIGITAL AFTER 2000
Global installed, optimally compressed, storage
Overall
Exabytes
100%=
Digital
Analog
Detail
% : exabytes
54
25
75
295
94
10
3
3
1
1986 1993 2000 2007
300
250
200
150
100
50
0
1986 1993 2000 2007
NOTE: Numbers may not sum due to rounding.
SOURCE: Hilbert and López, “The world’s technological capacity to store, communicate,
and compute information.” Science, 2011
6
97
99

5. CH 2 : DATA-DRIVEN MARKETING 33
This change in capacity and
digitization of data storage has
huge implications. We now have
a window into consumers’ lives
and almost every aspect of their
relationship that they build with
the brands we market to them.
We also have the potential to
manipulate, match and manage
that mass of data in almost
limitless ways. (See Sidebar:
Are you prepared?)
We all know the era of Big Data is
upon us. Yet, many in the industry
are still unprepared. A recent IBM
CMO survey showed that – while
CMOs understand in no uncertain
terms how critical Big Data is to
their future success – many admit
they have yet to find the correct
techniques and management
approaches. Forrester, meanwhile,
surveyed business decision-makers
about what they viewed
as their most critical challenge
in putting Big Data to use
effectively. The responses were
all over the map, and the fact that
there was little consensus shows
that each organization needs to
set its own priorities about how to
tackle Big Data.
However, no task is more essential
than to examine all of the potential
issues that could be resolved
with the help of Big Data and
prioritize them. The most critical
and beneficial step that any brand
leader can take, in order to start
the process of harnessing the
power and insights of Big Data, is
to establish a data strategy and a
set of key performance indicators
(KPIs) that outline in detail the
direction of insights that are
needed from data analysis in order
to increase marketing ROI.
The systems and data priorities
that are established will clearly
be significantly different if the
organization’s top Big Data priority
is about the ability of the internal
organization to share data in real
time as opposed to a primary
challenge of not getting access to
real-time data at all.
SIDEBAR :
ARE YOU PREPARED?
TABLE 2
Biggest challenges to use of “big data” for marketing
29%
51%
39%
The lack of sharing data across our organization is
an obstacle to measuring the ROI of our marketing
42%
45%
We have too little or no
customer/consumer data
Our data is collected too infrequently
or is not real-time enough
We are not able to link our data together
at the level of individual customers
We aren’t using our data to effectively
personalize our marketing communications
0 10 20 30 40 50 60
50%
PERCENT OF CMOS REPORTING UNDERPREPAREDNESS
Data explosion 71%
Social media 68%
Growth of channel and device choices 65%
Shifting consumer demographics 63%
Financial constraints 59%
Decreasing brand by loyalty 57%
Growth market opportunities 56%
ROI accountability 56%
Consumer collaboration and influence 56%
Privacy considerations 55%
Global outsourcing 54%
Regulatory considerations 50%
Corporate transparency 47%

6. CH 2 : DATA-DRIVEN MARKETING 35
PART 2 :
THE LIVE DATA STREAM
All of this data is being set up
for another revolution: the Live
Data Stream. With powerful
portable devices and always-on
connections, consumers are
constantly feeding a stream of
data—in real time—about brand
attitudes, feelings and behaviors.
This data, can be harnessed and
turned into actionable insights.
Thanks to smartphones, tablets
and other connections, consumers
have turned to digital channels
to supplement their knowledge,
behavior and attitudes to brands.
This has dramatically increased the
volume of real-time or live data
that brand owners and agencies
can access to illuminate up-to-the-
minute changes in brand
metrics. But those metrics aren’t
coming to us in the easily defined
and “traditional” formats of past
consumer behavior. Rather,
they are coming in the forms
consumers have already embraced,
like social media.
Even more is coming. According
to an eMarketer forecast, social
network growth, although slowing,
174.7
65.8%
66.9%
68.0%
will grow to cover more than 50
percent of the North American
population through 2014.4 Every
“Like” of a brand on Facebook,
and every brand-name hashtag
on Twitter is another piece of
data that can be used to inform
marketing, but each comes with its
own set of rules and parameters.
Facebook and other social
media are not the only sources
of live data, and they are not
the only cause of the explosion.
Smartphones have become
4 eMarketer, “Social Network Users and Penetration in North America, 2011-2014,” February 2012
5 Foresee 2010 Retail Satisfaction Index
a constant companion for
consumers, and are used during
their traditional media experiences.
Pew Research shows that 74
percent of smartphone owners
use their device while watching
TV for a multitude of purposes.
Some use them to multitask,
conducting online searches for
information. Others post to their
social media feeds. Still others
use their phones to participate
in promotions they’ve seen
advertised on television, or
through their secondary online
browsing. Each one of these data
points tells us something different
about the effectiveness not only
of the message, but of the channel
and attitude of the consumer to
the brand messaging they’re being
exposed to at that very moment.
Recommendation engines are a
perfect example of how brands
have structurally adjusted to the
benefits of Big Data analytics to
great advantage. Amazon (and
most other e-retailers) have
developed effective real-time
recommendation engines based
on analysis of massive amounts of
real-time data to engage shoppers
without resorting to traditional
mass, untargeted pricing and
discounting. The ability to create
personalized, helpful suggestions
for consumers has had a significant
impact of customer satisfaction
data, and there is clear evidence
that satisfied customers are more
likely to purchase, be loyal and to
recommend a brand.5
SOCIAL NETWORK USERS AND
PENETRATION IN NORTH AMERICA
millions, % of internet users
and % of population
63.6%
47.2% 49.8%
51.4%
52.9%
163.9
2011
2012
Social network users
% of internet users
% of population
181.9
2013
189.2
2014
NOTE: Internet users who use a social
network site via any device at least once per
month; includes Canada and the US
SOURCE: eMarketer, Feb 2012
SMARTPHONE OWNERS LEAD THE WAY IN
“CONNECTED VIEWING” EXPERIENCES
% in each group who have used their phone in the preceding 30 days to...
SMARTPHONE
OWNERS (N=904)
OTHER CELL
OWNERS (N=1050)
Keep yourself occupied during commercials
or breaks in what you were watching
58% 17%
Check whether something heard
was true or not
37
6
Visit a website mentioned on TV 35 3
Exchange text messages with someone
watching the program
32 13
See what others were saying online about a
program you were watching
20 2
Post your own comments online about a
program you were watching
19 2
Vote for a reality show contestant 9 4

7. CH 2 : DATA-DRIVEN MARKETING 37
The data that would allow brands
to personalize the experience in
real time for consumers is already
available, and some brands are
finding ways to put it to work.
That said, brands are still a long
way from being able to deliver
on that opportunity. The e-tailing
group surveyed 131 mostly large
and mid-sized Web merchants in
Q3 2011, and found that more than
half gave themselves poor marks in
their personalization efforts.
To manage this ever-increasing,
live-stream of Big Data,
organizations must set themselves
up internally to respond to the
insights available. Brands must
adjust their internal processes
and marketing plans in ways that
will enable them to immediately
respond to consumers’ actions as
information is received. Consumers
have embraced social media and
other live interaction opportunities
with brands. It is incumbent on
the brands to respond in-kind with
immediate, personalized responses.
Learning how to harness and
manage this data can yield
huge returns. Nucleus Research
found organizations can earn an
incremental ROI of 241 percent
by using Big Data capabilities to
examine large and complex data
sets. These returns are the result of
improved business processes and
decisions through optimizing the
increased types of data available
and the ability to monitor the
factors that impact a company
most, such as customer sentiment,
by scouring large external data
sources such as social media sites.
These abilities are the hallmarks
SOPHISTICATION LEVEL* OF THEIR CURRENT PERSONALIZATION EFFORTS
ACCORDING TO US RETAILERS, Q3 2011
% of respondents
1-3
54% 4-6
33%
7-10
13%
NOTE: *on a scale of 1-10 where 10 = “very sophisticated” and 1 = “not at all sophisticated”
SOURCE: the e-tailing group, “Prioritizing Personalization For Growth,” Nov 11, 2011
PART 3 :
FROM AUTOMATED AND TACTICAL TO PREDICTIVE
of a Predictive Company (as
opposed to a Tactical, Automated
or Reactive one.)
Nucleus Research identified four
critical areas of benefit to big data
analytics that organizations can
realize from the use of Big Data:
1. Big Data solutions that
encompass vast data sets enable
solutions that link all aspects of
the business together.
Retailers can link insights about
their loyalty program customers
with in-store behavior and
social behavior.
RETURN OF INVESTMENT
1400%
1200%
1000%
800%
600%
400%
200%
0%
Predictive
Strategic
Tactical
Automated
Automated Tactical Strategic Predictive
2. Big Data accelerates decision-making.
Customer churn, for
example, can be addressed in real
time, rather than only fixing issues
that contribute to churn long
after a customer has left, live-data
analytics can uncover and suggest
solutions for better customer
retention as they emerge.
3. Combining external data with
internal data adds significant
value to internal data. Adding
geographic, meteorological or
other external datasets creates
much more sensitive analytics.
4. Big Data analytics is critical
to successful online sentiment
monitoring. The ability to define
meaningful results from “noise” is
not really possible without new Big
Data techniques.
Yes, these changes are difficult.
And it may require years of
“unthinking” the practices of the
past. But marketers who can
make the attitudinal and structural
modifications to realize the full
benefits of Big Data will reap
significant rewards. Moving from
a tactical/reporting position to a
strategic and predictive approach
will generate a measurable
increase in marketing ROI, and a
significant lift in business. (See
Sidebar: Moneyball)

8. CH 2 : DATA-DRIVEN MARKETING 39
The popular book and film
"Moneyball” illustrated how the
smart use of data and statistics
transformed a 150-year-old sports
pastime and business. The same is
happening with advertising.
For years, baseball had been
managed according to gut instinct
and near-mythical truisms. In the
early 21st century, one outlier, Bille
Beane, used data, statistics and
financial market-like techniques
to bring success to a payroll-challenged
team. Beane's use of
sophisticated data analysis to
identify which player statistics
really mattered—a player's on-base
percentage rather than batting
average, for example—gave
him a real advantage in finding
players who were undervalued
by his competition. These days,
the research and insights Beane
used have become commonplace
among his competitors and all of
Major League Baseball.
Marketers must apply the same
game-changing insights to the
information available to them. For
marketers, the data explosion is
not just about online messaging
exposure and real-time response.
Now, there is real-time behavioral
data on our customers, allowing us
to figure out their level of interest
in our brands, their loyalty and
potential for incremental cross-sales.
Matching first-party data
from brand customers with third-party
data from other online and
offline sources, can give marketers
and their agencies unprecedented
insights into the relationship
of media and messaging at the
campaign and individual spot
basis to specific brand customers
and their actions.
1ST
PARTY
DATA
PLANNING
DATA
3RD
PARTY
DATA
These Database Management
Platforms, where we collect and
analyze the Big Data that comes
from brand customers as well
as other online behavior, offer
the potential to make strategic
and tactical marketing decisions
based on a mass of statistical
data and analysis that has never
been available before. To stretch
an analogy, we can draft new
target audiences, never before
considered based upon the
behaviors we have seen from
the data analytics on current
customers and potentials.
As media become more digital—
and, as a result, more targetable,
measurable and accountable—
these analytics will be crucial.
Even television, which has long
resisted change is changing fast
as more of it is delivered through
digital set-top boxes, over Internet
protocol networks or on the tens
of millions of new smart, Internet-connected
TVs and companion
devices that are shipping around
the world this year. Not only will
these new TVs connect directly
to the Internet, but they will run
Web-based apps, link new cloud-based
streaming services and
also produce a treasure-trove of
data and direct consumer-viewing
measurements, which will open up
TV advertising to Billy Beane-like
transformation.
This does not mean that the
“art” of the media industry will
be forever trumped by “science.”
However, decisions about which
media to buy will no longer be
driven by history, comfort and
relationships. Data and predictive
science will drive more and more
media decisions. And the results
will solve many of the problems
plaguing our industry. Such as:
Wasted frequency. In most mass-awareness
TV ad campaigns in the
US today, 80 percent of the spots
end up being delivered to only 35
percent of the target audience,
and a full 30 percent of the
desired target receives none. The
culprit? Audience fragmentation.
Fifteen years ago, that 80 percent
was spread to more than 60
percent of the target, and the
size of the unreached target was
very small. Now, data analysis is
being used to determine the exact
makeup of a show's audience and
to perfectly measure and manage
the reach and frequency of TV
ad campaigns with online-like
frequency capping.
Finding elusive audiences.
Trying to find young males
outside of sports content?
Hispanic audiences within
English-language content? Or
light TV viewers you can't reach
efficiently with broadcast-centric
prime-time campaigns? Data will
find them. Marketers will discover
gold using data to aggregate
valuable audiences from
unconventional places.
Creative testing. With robust
cross-channel data, you can now
know which viewers abandon your
ads and which viewed them. Not
only will we learn which audiences
actually like our ads, but we'll be
able to test and optimize creative
SIDEBAR : MARKETERS
MUST PLAY ‘MONEYBALL’
DATABASE
MANAGEMENT
PLATFORM

9. CH 2 : DATA-DRIVEN MARKETING 41
Becoming a Predictive Company,
however, will require changes
in the ways many do business,
both at the macro and day-to-day
levels. In a world soon awash
in Big Data and opportunities to
use it, one thing is clear: there
are not enough people in today’s
marketing organizations with
the level of experience in using
Big Data to make companies
successful in the future. And many
of these organizations do not
have the right tools and processes
needed to survive—much less
thrive—under the coming tidal
wave of information.
In the Big Data-driven world,
marketing organizations need to
infuse themselves with experts.
Mathematicians, scientists,
statisticians, software and
hardware engineers. All will be
important to companies looking
to harvest and harness Big Data
and turn it into useful, actionable
information. It’s a page from
the playbook of today’s fastest-growing
digital companies. Look
at the hiring practices of Google,
Amazon, Apple, Microsoft,
Facebook and Twitter. Employees
in those companies are different
from those hired by traditional
marketing and media companies.
They possess:
TECH-SAVVY LEADERSHIP.
Not only are the most successful
digital companies well-stocked
with engineers, scientists and tech-centric
product managers, but
technology is the primary skill set
of their leaders and their workers.
They drive the businesses, the
products and the core strategies.
HARD SCIENCE. Many marketing-related
companies, particularly
in media, still rely on qualitative
“social” science in much of their
decision-making, not the kind
of quantitative sciences needed
to exploit Big Data. Yet, hard
numbers are the new reality of
units in live environments. Think of
the improved efficiency if we can
get audiences to stick around and
watch ads because the data tells
us which ads will stick with them.
Secondary measurement and
promises. Nielsen, comScore
and panel ratings aren't going
away. Macro audience ratings
will be with us for a long time.
However, those measurements
will be supplemented with micro-measures
of exact audience
patterns, which will be baked
into ad campaign deals. Imagine
delivering your Gross Ratings
Points with set-top box data-based
guarantees of specific
audience compositions—such as
frequent moviegoers who like
dramas, or Coca-Cola brand fans—
or guarantees of attributed sales
by linking household-level viewing
data with actual purchases.
We’ve moved into the “Moneyball”
era. Are you ready?
ANALYTICS AND DATA SCIENCE JOB GROWTH
ANALYTICS AND DATA SCIENCE JOB STARTERS
(AS A PERCENTAGE OF ALL JOB STARTERS)
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010
0.1
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0

10. CH 2 : DATA-DRIVEN MARKETING 43
the advertising and marketing
industry. Marketers need
cognitive scientists, statisticians,
mathematicians and physicists.
DIVERSITY. In fast-growing digital,
data-driven companies, diversity
is a competitive advantage and a
business imperative.
IMPATIENCE. Companies like
Amazon, Google and Apple
have relatively flat organizational
cultures, and their employees
have no time or patience for the
kind of long, escalator-like ride
over decades to reach leadership
positions that exist in many non-digital
companies. They know what
they want and they want it now.
VERSATILITY. In traditional
marketing organizations, many folks
are “bucketed” into roles and silos
during early stages of their careers
and find success through focus
and unique expertise. Invariably,
some of the strongest talents in
emerging, digital and data-driven
companies have degrees that span
both science and arts, work better
horizontally than vertically, and take
pride in constantly changing gears
in their careers.
However, hiring the best is only
part of the equation. (And a
very difficult piece at that. There
is a limited pool of emerging
talent with Big Data skills, and
competition for the best is
intense—much like the competition
we’ve seen for computer scientists
over the past 10-15 years. It’s a
certainty that demand for data
scientists will outstrip supply for
years to come.) Companies must
also adjust, adapt and improve
their internal processes and
procedures to ensure they’re set
up to capitalize on the information
and insights created by these
streams of Big Data. Among the
things they need to keep in mind:
BIG DATA TECHNOLOGY IS
GETTING BIGGER, BETTER,
FASTER AND CHEAPER.
Innovation in analytic tools,
systems and platforms has
exploded over the past few
years, particularly in the open-source
community. Open-source
data management technologies
like Hadoop and pay-as-you-go
cloud-based data services
like Amazon Web Services and
Mongo Database are replacing
comparable data management
systems from companies like IBM,
Oracle and Teradata that cost
millions upon millions of dollars.
In many cases, enterprises
can build or buy analytic data
warehouses that are 100 times
bigger than those available 10
years ago - for 1/100 the cost.
This means companies with data
technologies that are only five
years old will find themselves
at significant disadvantages
in both capabilities and cost
structures to competitors with
new technology. Investments in
new data technology on a regular
basis will be critical for marketing
enterprises to remain competitive.
DATA ANALYTICS IS BECOMING
MORE BROADLY ACCESSIBLE
ACROSS ORGANIZATIONS.
Not only can these new data
systems store massive amounts
of data, but they can also manage
unstructured data, giving users
far more flexibility in how they
organize, manage and query the
data. This is helping companies
make data much more accessible
and available across organizations.
Whether it is trying to understand
purchase behaviors of target
customers or sales attribution
to social media, what was once
the domain of the research
department is now available to
managers at all levels of marketing
organizations. (See Side Bar:
Trust and Security)
Investing in new employees,
technologies and processes to
better serve Big Data is not an
option. Companies looking for
competitive advantages will target
these three areas for strategic,
competitive and market share
growth. Those that do not will be
left behind.
The era of Big Data is upon
us. Thanks to the tools of the
Connection Engine (smartphones,
tablets and super-fast, always-on
connections), consumers are
giving marketers a wealth of
actionable information. It’s up to
marketers to turn that information
into valuable insights and
programs that reward consumers
based on their needs, information
and realities. The data is coming
in real time and marketers must
react with the same spontaneity.
Information moves at the speed of
light; marketing programs will have
to move just as quickly.

11. CH 2 : DATA-DRIVEN MARKETING 45
SIDEBAR : BIG DATA:
BIG SECURITY NEEDS
Fifty-five percent of CMOs feel
unprepared for the privacy
considerations in the exploding
digital world (Source: 2011 IBM
CMO Study).
In March of 2012, the Federal Trade
Commission (FTC) published
“Protecting Consumer Privacy
in an Era of Rapid Change,”
delivering basic principles
that emphasize awareness,
transparency and care in dealing
with customer or community
information. The report mandates
protection at many levels, simple
customer-driven options and
transparency and disclosure.
“In its guidance and actions, the
Federal Trade Commission (FTC)
is asking for privacy by design,
built from the ground up with
consumers getting notice and
choice,” says Gary Kibel, a partner
in the Digital Media & Privacy
Practice Group of Davis & Gilbert.
“If you are a brand, you have to
look at the whole process of how
data flows.”
In addition to stricter privacy
guidelines and increased FTC
action, another real brand
threat emerges: the increasing
complexity of keeping data that
resides and moves across complex
social, mobile and financial
ecosystems safe from security
breaches or organized hacks.
Every state has different levels
of breach notification and action.
With nationwide customer
bases, resolution is messy, time-consuming
and expensive for
anyone experiencing a breach.
And according to research done
by Imation (see image, right), the
strictest states have relatively
low bars that trigger mandatory
notification of consumers, credit
agencies and government entities.
Actual or even perceived violations
are a one-way ticket to losing a
customer, not to mention fines
and potential costs of remediation.
There is clear expectation that
brands will be careful with
personal information, and errors
come with a high price. According
to ongoing research from
PricewaterhouseCoopers LLP,
consumers are far more worried
about security breaches than
privacy, and 61 percent of those
surveyed said they’re “not willing
to continue to use a company's
services or products after it
experiences a security [breach].”
(Source: http://www.pwc.com/us/
en/industry/entertainment-media/
assets/pwc-consumer-privacy-and-
information-sharing.pdf)

12. CH 2 : DATA-DRIVEN MARKETING 47
To realize their full potential,
organizations must be set up
to respond to Big Data insights
in real time. Brands will need
to adjust their marketing plans
to immediately respond to
consumers’ actions as they learn
about them. Consumers have
embraced social and other live-interaction
opportunities with
brands, and they fully expect
brands to respond in-kind
with immediate, personalized
responses.
It will take considerable change
for brands to begin to realize the
full benefits of Big Data analytics.
But if those hurdles can be
overcome, the benefits are clear
and significant. Moving from a
tactical/reporting position to a
strategic and predictive approach
will generate a measurable
increase in marketing ROI.
The ability to collect and analyze
massive amounts of data and
the application of predictive
science are transforming how
marketers and agencies manage
media. These insights can help
develop strategies and reach new
potential target audiences with
customized messaging, as well as
aid measurement, optimization,
attribution and accounting.
Marketing organizations will
not be able to exploit Big Data
without investing in new types of
people, technology and processes.
It will be a requirement.
In the Big Data world, security and
trust will become brand currency.
Strong security and privacy
communication can actually
strengthen customer loyalty. Trust
is good business, and it is (and
should be) desired by consumers
and the agencies looking to
protect them.
“CONSUMERS FEEL MORE COMFORTABLE
SHARING INFORMATION IF THEY UNDERSTAND
THE BENEFITS TO THEM INDIVIDUALLY OR AS
PART OF A LARGER GROUP” – PWC SURVEY.
Big Data requires a trust reset and
close, careful management of data
in the new world. But the good
news is that consumers are eager
to partner on privacy, and the best
marketing tackles engagement
as a partnership with clear and
agreed-upon benefits for all.
Consumers seem to have an
insatiable appetite for monetary
incentives, trend information
and a desire to be part of
something broader. According
to PricewaterhouseCoopers
LLP surveys, “80 percent of
respondents said they were willing
to share personal information
if the company lets them know
upfront how they are going
to use it.”
Meanwhile, brands are becoming
their own news organizations,
pushing out data and advice to
their customers and markets.
But in an age where information
saturates, trust is one of the vital
filters for consumers to decide
what brands to even pay attention
to in the increasing barrage
of information.
According to the 2012 “Trust
Factor” study by About.com, 84
percent of consumers say “being
trustworthy is a requirement
before interacting with a brand
or info source.” (Source: http://
www.advertiseonabout.com/
wp-content/uploads/2012/07/
AboutTheTrustFactor.pdf)
In the era of Big Data, trust and
security will become something as
valuable (if not more so) than any
other brand attribute. Consumers
will be on the lookout for brands
that treat the information they’re
sharing with respect, rewarding
those that value the information in
trustworthy and secure manners,
and shunning those that do not.
Consumer trust and security of
their personal information must
get the same attention as every
other brand attribute.
KEY TAKEAWAYS
THINGS TO THINK ABOUT
ON THE CES FLOOR
Every new technology will
provide you with access to even
more consumer information.
How will you access it? How
will you incorporate it into your
current marketing processes?
Are you equipped to harvest and
harness that data with personnel
and/or technological systems?
What might you need to add to
your internal operations to yield
the best information from this
data? How will it support and/or
work in conjunction with other
data streams?