My talk from Marketing Analytics and Data Science 2018 on April 11. A talk illustrating how audience/fan/user meta data is being used by executives in music and sports.

1. GOLDMINE OR LANDMINE?
FAN DATA v PRIVACY
#MADS2018

2. Jon Gosier, Data Science Consultant
jon@gosier.org

3. GOLDMINE OR LANDMINE?

5. Third-Party Data - Data a second-party sells to a third-party who
reuses it or sells it. Acquired permission.
Second-Party Data - Data a second-party collects on you (or your
organization) with your permission. Transitive permission.
First-Party Data - Data collected by the subject. Self permission.
Personally Identifiable Data - Data needed to use digital products.
No permission.
Exploited Data - Data that’s been stolen or hacked and resold with
out the permission of any party. Violated permission of all parties.
Usually illegal.
THE SPECTRUM OF PERMISSIONS

6. The monetization of audience data (which includes micro-targeting data) makes up
a staggering amount of revenue from companies like Google and Facebook who in
turn dominate over 80% of digital advertising. This is more or less the business
model of the internet.
‘FREE’ IS JUST MARKETING

7. Free Services are almost always subsidized by some sort of data strategy. Even
paid subscription-based models are often subsidized by data sales.

9. $84 billion

10. Simply put, the potential for
monetizing data passively is too
lucrative for companies to ignore.

11. New technologies are capable of filling in the blanks in personal data...

12. ...creating ‘data derivatives’.

14. What was volunteered.
What was implied.
What was added.
How to reach them.

15. PII, Single Sign On, Credentials
Relationships, Behavior,
Demographics, Attitude,
Psychographics
Third-Party Data,
Public Data
Cookies, Pixels, Retargeting, Device IDs

16. Them: “Only 10%-30% accurate.”

17. “On a daily basis, people generate 2.5 exabytes of data, which is the
equivalent to 250,000 times all of the books in the Library of Congress.”

18. Me: “Going from 10% accuracy to 30% equals billions of dollars industry-wide.”

19. Everyone is freaking out about Facebook selling data, but Facebook more often
than not only sells superficial data about you, your friends and interests. From
there, others can connect the dots: data scientists assisted by mathematical
models, machine-learning, artificial intelligence, and other big data tools.

20. Poke
you all.

21. Re-targeting is only fueling demand for audience targeting data.
This can feel invasive, ‘creepy’....

22. Almost like.....

23. ... that feeling you
get when you’re in
the shower (and some psycho
violently murders you)

24. “...but I’m a creep.”
- Data

25. “...I’m a weirdo.”
- You

26. We all have our quirks.

27. The tipping point with consumers seems to be where the ‘guesswork’ of data
professionals becomes incredibly accurate and precise. It feels like the data is
being sold outright, when in reality a plethora of different sources of data work
together. It doesn’t mean any one party knows everything about you.

29. Pre-targeting is one way around this. Hi-jack retargeting to use what you
know about consumers to put something new in front of them.
They see personalized ads
on other websites.
Same re-targeting ‘pipes’ are used to monetize user
conversion on third-party websites.

30. ... too lucrative for companies to
ignore.

31. Sports client want to know how their data is being used to target and convert
new audiences globally (China accounted for 66% growth)...
Music client wanted to know what 30 years of music data (release strategy)...
Music client wanted to know who were the most profitable artists in their
catalogue that they might be overlooking...
Music client wanted to predict how many ‘spins’ his new single would get in the
first week...
Music client wanted help building an attribution model for where customers for
his e-stores were coming from (which articles, blogs, social networks or offline
promotions)....
EXAMPLES

32. “In the past, the record
industry had relatively little way
of understanding who was
buying their LPs, cassettes or
CDs. Downloading allowed
them to begin tracking
listening habits and making
recommendations in the same
way that Amazon does for
b o o k s . ) S t re a m i n g h a s
opened the floodgates.”
- Forbes

34. BIG DATA BOUJEE

35. What’s the biggest record label?

36. $7 billion $6 billion
$4 billion

37. $7 billion $6 billion
$4 billion
None of these!

38. $8.4 billion
$7 billion $6 billion $4 billion

39. Ideal Timing
Full Window
Pre-Release Window / Weeks
OPTIMAL PRE-RELEASE WINDOW

40. (LABEL) CATALOG ANALYSIS

41. WHERE DID THE
A recent ESPN report shows that nearly half the
NBA’s teams reported a loss in revenue last year.
This is due to inequities in revenue-sharing in
media and broadcast deals.
47%
But the fastest area of growth in advertising isn’t in broadcast, its in
data. The declining revenue is linked to declining viewership as
viewers find more ways to enjoy sports that aren’t on TV. They use
devices, phones, and OTT platforms which have different revenue
models than broadcast.
REVENUE GO?

44. THANKS!
jon@gosier.org