after the land grab: 10 trends shaping big data’s next stage
DESCRIPTION
In the first stages of the data revolution, marketers realized that all types of data have the potential to inform and transform every level of the modern enterprise. And so a massive land grab fed everyone’s basic data sets. But now real experience working with data and practicalities of the market are informing the next stage in development reflecting users’ contrasting needs to generate incremental value from their data utilization. Maintaining discipline in investment of money and resources and in delivering better customer experiences are now paramount concerns. With that in mind, we’ll identify the 10 dynamics that we expect will dictate demand for (and the relative value of) data in 2013. Presenter Jonathan Margulies, Managing Director, Winterberry Group LLCTRANSCRIPT
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After the Land Grab: 10 Trends Shaping Big Data’s Next StageJonathan MarguliesManaging Director
January 23, 2013OMMA DDM • New York,
NY
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Winterberry Group: Supporting the Growth of Advertising, Marketing, Media, Information and Technology Organizations
Strategic Consulting
• Corporate Strategy
• Market Intelligence
• Process Optimization and Alignment
• M&A Transaction Due Diligence Support
• Investment Banking Services, through
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After the Land Grab
Our Agenda
• The Data “Market”: Four Evolving Paradigms
• 10 for ‘13: Trends Shaping Big Data’s Next Stage
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“What Is Data?” Depends on Your Perspective…
Targeting
Audience InsightsVs.
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“What Is Data?” Depends on Your Perspective…
Anonymous
Personally-IdentifiableVs.
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“What Is Data?” Depends on Your Perspective…
CreepyRelationship-EnrichingVs.
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“What Is Data?” Depends on Your Perspective…
“Big”
EstablishedVs.
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If Only We Could Illustrate The “Big Data” Opportunity…
Sources: Asigra, Century Link, Forbes/Dave Feinleib, HortonWorks, IBM, Jaspersoft, NetApp, Sybase, Wikibon, Wipro
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In the Media and Marketing Worlds, A Frenzy of “Big Data” Investment Has Three Constituencies Vying for a Piece of the Pie
“The Buyers”: Marketers, Advertisers, Publishers
Shared Goals: Activation, Engagement, Value
“The Intermediaries”: Agencies, Exchanges, Ad Tech & Service Providers
“The Sellers”: Publishers, Compilers, Researchers
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But One Challenge Persists: Striking an “Omnichannel” Balance with Costly (But Effective) Traditional Data Infrastructure
(1) Includes retargeting services, intent/inferred data,offline data used for online marketing(2) Includes e-mail lists, database management/hygieneand analytics services(3) Includes mailing lists, database management/hygieneand analytics services
U.S. Spending, Targeted Marketing Data & Related Services (2010-2014E)
Online Display-Related Data Spending1
E-mail-Related Data Spending2
Direct Mail-Related Data Spending3
Online Display-Related Data Spending1
E-mail-Related Data Spending2
Direct Mail-Related Data Spending3
Source: Winterberry Group analysis of various sources
Total:$9.96 BB
Total:$11.31 BB
Total:$11.57 BB
94.7%
2.4%2.9%
90.0%
3.9%6.1%
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Email Spending
Display Spending
Direct Mail Spending
Email Spending
Display Spending
Direct Mail Spending
Source: Winterberry Group analysis of various sources
2010 2012 2014E
$1.4 BB
$44.9 BB
+57.1%
+109.1%
Total:$56.2 BB
Total:$60.7 BB
Total:$68.1 BB
U.S. Spending, Targeted Marketing Media(2010-2014E)
How (and When) Will Data Dollars Align with Top-Line Spending?
$9.9 BB
-0.7%
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We’re Now Emerging from “Big Data 1.0”: A Land Grab for Information and Resources (Without the Benefit of Vision, Experience or Insight)
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After the Land Grab
Our Agenda
• The Data “Market”: Four Evolving Paradigms
• 10 for ‘13: Trends Shaping Big Data’s Next Stage
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The Use Cases Emerge: Something to Do With All That (Digital) Data…
• Centerpiece applications finally emerging across the ecosystem• Few deploying substantial (or
even equal) resources across all addressable use cases; investments reflect legacy needs rather than systematic data strategy
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“How Important Will the Following Use Cases Be to Your FutureData-Driven Marketing Efforts?”
Source: Winterberry Group survey,Jan. 2012
Not likely to be a focus of our future data utilization
Likely to be a significant focus of our future data
utilization
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The Talent Gap: What Good is the Data if Nobody Understands It?
• Acute shortage of analytics/ technical staff with marketing perspective inhibiting data investment• “All marketers are
technologists”: Up for debate? Or just a matter of time?
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Organizations Lack the Necessary Analytic and Technical Skills Internally; Have Trouble Recruiting
“How would you rate the analyticcapabilities of your company today?”
78%
“How challenging is it for your companyto source analytical skills?”
Impossible
Very difficult
Challenging
Somewhat
challenging
No issue 0%
76%
Source: NewVantage Partners: “Big Data Executive Survey,” 2012
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The Process Gap: Many Still Trying to Force New-World Information Through Old-World Pipes
• Infrastructure built to support traditional media commonly “engineered” to address fundamentally different execution needs• The silo conflict: competing
interests with respect to data, rights, budgets, authority, creative assets, etc.
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73% 71%63%
56% 55%
44%38%
32%
15%
Internal process and marketing
operations hurdles
No clear internal owner for DMP
solution
No clarity into the role of DMPs
in the C-suite
Lack of established performance
metrics
Lack of clear business case /
ROI expectations
Concerns about privacy, security
and data governance
Concerns over cost
Lack of addressable data to fuel DMP use
Prefer to wait for next
generation technology
Source: Winterberry Group, November 2012
“Which issues would you describe as ‘major hurdles’inhibiting faster DMP deployment?”
Internal Operating Challenges (and Neither Data nor Technology) Are the Real Barriers to Wider Data Integration
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The Big Data Death Match: Marketing, IT Vie for Influence Over Critical Information Assets (and Marketing Might Just Win)
• At the heart of Big Data evolution: a competition for authority between marketing, brand management and IT • One likely solution: the
emergence of a dedicated marketing technology function (possibly aligned with the chief data officer)
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“Minor” Internal Conflicts Can Give Rise to Substantial Long-Term Costs (Among Them: Missed Opportunity)
51%45% 42% 39%
29%
The lack of sharing data across the
organization is an obstacle
We aren't using our data to effectively
personalize messaging
We are not able to link our data at the level of individual
customers
Our data is collected too infrequently or is not real-time enough
We have too little customer or consumer
data
“What are your biggest challenges in using ‘Big Data’ for marketing?”
Source: Columbia Business School, NYAMA: “Marketing ROI in the Era of Big Data,” 2012
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The “Omnichannel” Imperative: Engaging Customers Across Screens Becomes a Need-to-Have
• Consumers’ embrace of mobile, social and other media raising the bar for marketers to deliver seamless engagement• The dilemma: attribution,
campaign management, execution approaches still reflect “last-click,” single-channel sensibility
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The Prerequisite: Effective Multi-Platform Attribution
Why Pursue BetterAttribution?
Source: eConsultancy and Google Analytics,Marketing Attribution: “Valuing the Customer Journey,” 2012
Though only 14% of marketers think last-click
attribution is “very effective,” 54% use the
same as their primary performance metric
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In the Line of (Regulatory) Fire: If We’re All Buying and Selling Information, Just Who Exactly is a “Data Broker”?
• Growth of data-driven economy focusing regulator attention on marketplace; “data brokers” under current FTC investigation• Good questions: What is right
level of transparency, choice? How to best deliver both?• Bad question: “Who owns
data?”
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Largely Underreported: The Consumer Benefits That Come with Responsible, Transparent Data Deployment
Source: The New York Times, “You for Sale,” June 16, 2012
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The DMP at Center Stage: Big (Marketing) Data Demands Custom Tools to Meet Scale, Speed, Modularity Needs
• Originally developed to solve an organic challenge—“How to access audience segments from third parties?”—DMPs now serving as effective hub for data integration, activation• Growth driven by organizational
needs—not inherent complexity of data or technology
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The DMP Aggregates, Integrates, Manages and Deploys Disparate Data
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Interest in DMP Solutions is Substantial—And Growing Rapidly
“What type of role do you think DMPs are likely to play in expanding the performance
of companies’ long-term advertising and marketing efforts?”
“How would you say that your (or your clients’) interest in DMP solutions has changed over the last several years?”
Source: Winterberry Group, November 2012
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Rules of the Road: Stewardship Strategies Emerge as Critical Prerequisite for Data Activation
• Data stewardship strategies emerging as critical “need-to-have” given the growing role of data across the enterprise (and costs associated with its misuse)• Once considered niche legal/
privacy function; now joining the cross-disciplinary marketing mainstream
Artwork Source: OCDQ Blog/Jim Harris, Jill Dyché
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Most Marketing Teams Unprepared When it Comes to the Evolving Demands of Marketing Data Stewardship
“Does your company have a specific strategy for handling the challenges of
big data?”
60%
“How prepared is your marketing team with regard to the rules and regulations
of marketing data governance?”
Not Very
Somewhat
Very
Source: DMA/Neolane, “Big Data: Impact on Marketing Organizations,” January 2013
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And One Contrary View: The Big Data Bubble is Here
• What if we invested millions of dollars (and millions of man-hours) in information, technology and process changes that… delivered very meager results?• How can we optimize the
chance that our Big Data bets pay off in a meaningful way?
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“Big Data” May Ultimately Prove Transformative, But There Will Be Growing Pains as Companies Feel Their Way
Time
Technology Trigger
Peak of Inflated
Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Big Data
Does the “hype cycle” provide a useful means of benchmarking the progress of Big (Marketing) Data over the next few years?
Source: Gartner, Hype Cycle for Cloud Computing, August 2012
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Or Should We Learn From the Experience of Past Innovation Cycles?
It's as if the plan is roughly:
• Analyze data—preferably Big Data• ???• Profit.
This feels eerily analogous to the dot-com bubble of the late 90s to me (substitute “analyze data” with “capture eyeballs”)… except underneath the hype, a truly major revolution is happening: The real revolution in data will be a change in organizational behavior and culture… creating a [data-driven] organization that can confidently experiment, innovate and adapt on a broad scale
Scott Brinker; January 21, 2013
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Toward a “Secret Sauce”: Competitive Differentiation Derived from More Than Just Data Accrual
• Success in the “Big Data 2.0” era will require more than just a data land grab; it demands the synthesis of strategy, customer insight and automated execution• At the end of the day, effective
strategy begins with desired outcomes… which cannot be identified by machine
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For A Deeper Dive…
Download at:www.winterberrygroup.com/ourinsights
And Coming Soon…
“Taking Cues from the Consumer:
Omnichannel Comes of Age”
and…
“The New Rules of the Road: Data
Stewardshipin the Era of Big
Data”
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Jonathan MarguliesManaging Director
[email protected]@jcmargulies
60 Broad Street, 38th FloorNew York, NY 10004www.winterberrygroup.com@WinterberryGrp
Thank You!