beyond the data buzzwords jonathan margulies

Beyond the Buzzwords:“Big Data” and the New Demands ofRight-Time Marketing Jonathan MarguliesManaging Director

13 November 2012AMDIA Integra 2012

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 Diligence Support

• Investment Banking Services, through

Beyond the Buzzwords

Our Agenda

• A Brief History of Data

• How is Technology Changing The Way We Use Data?

• What Does the Future Hold in Store?

To Put Things In Context: Today’s “Big Data” Opportunity Is Addressable to Advertisers, Marketers and Publishers Alike

Audience Engagement

• Yield• Advertising

Revenue• Gross Rating

Points• Circulation

The Publisher• Direct Sales

• Performance• Response Rate• ROI

The Marketer• Reach

• Awareness• Brand-Building• Gross Rating

Points

The Advertiser

H. Catalogus

(0-~1980 A.D.)

Name:Address:

The Marketer: In the Beginning, There Were Subscriber Files…

… Which Begat Demographic “Selects,” Data Cards and the First True Commercial Data Models…

NAME ADDRESS

GENDER

INCOME

PHONE

AGE

H. Catalogus

(-~1980 A.D.)

H. Mailinglistus

(~1980s)

… Which Begat Modeling, Segmentation, Coop Databases and—With the Arrival of the Internet—E-mail Data…

H. Catalogus

(-~1980 A.D.)

H. Mailinglistus

(~1980s)

… Which Gave Rise to the Infrastructure—and a Whole Industry of Service Providers—Focused on Data Compilation and Management

H. Analyticus (~1990-2000s)

“Customer File”: Contact Info, CRM,

Demographics

“Prospect File”: Demographics, Credit

Scores

Transactional / Loyalty Records

Public Records

Self-Reported “Intent” Data

Persistent Identifiers

Interactions Logs

“Single Source of the Truth”

Mr. John Q. CustomerOne Response Rate WayNew York, NY 10001

The Advertiser: For Many Years, “Data” Was Whatever The Agency (or the Media Provider) Said It Was

“At the turn of the 20th century, publishers fought a fiercely competitive battle. Using circulation figures as weapons, publishers won advertising dollars by flooding the marketplace with false and misleading circulation claims...”

Though Resources Would Emerge to Help Define the Size and Structure of Media Consumers, Old Buying Models Persist

And advertisers generally haven’t been aggressive in seeking “audience accountability,” mostly due to…

•Relationships

•The visibility of massmedia

•Cultural resistancefrom “premium”brand publishers

80% of U.S. Internet

users engage with social media

and blogs

70% of newspaper

readers now

consume content via

digital platforms

84% of online

Americans watch digital video content

53% of Americans

made an online

purchase in 2011

Sources: Forrester Research;Newspaper Association of America; Nielsen

Disrupting Both Models: The Internet

Artwork Source: David Harbaugh,Harvard Business Review

Our Fundamental Problem Isn’t “Not Enough Data”

In Fact, The Growth of “Digital” Has Brought With It a Deluge of New Data Types

Postal Geo-/Demographics“CRM” History/SurveysCatalog/E-Commerce TransactionsRetail Transactions

Print Circulation

Broadcast RatingsEmail Geo-/Demographics

But The Distinctions Between “Established” and “Emerging” Datasets Are Stark

• Structured: Keyed to name and geo-locators

• Media-Centric: Geared to needs of specific channels

• “Slow Spoilage”: Decays at modest pace

• Backed by Experience: Solid understanding of value, use cases, technical requirements

Esta

blish

ed

• Unstructured: Collected via bespoke taxonomies; anonymous with respect to the individual

• Media-Agnostic: Reflects online browsing behavior; useful for drawing wider inferences

• “Fast Spoilage”: Decays at rapid pace

• Still Early Days: Best practices in development

Em

erg

ing

And They’re Compounded By a Series of Secular Marketing Trends, Highlighting the Distinctions Between…

Known Names/Addresses…

… and Anonymous IP Addresses

Mr. John Q. Customer

One Response Rate Way

New York, NY 10001

Focus on “Batch” Campaigns…

… and Real-Time Deployment

Single-Channel Focus…

… and Integrated Marketing

“Customer File”: Contact Info and Demographics

“Prospect File”: CRM Demographics, Credit

Scores

Transactional / Loyalty Records

Public Records

Self-Reported “Intent” Data

H. Digitalus(~2009-Today)

Behavioral (Clickstream)

Intent (Opt-In/Registered and

Inferred)

Web Analytics (Geo-/ Technographic) ?

The Underlying Challenge: “Square Peg” Emerging Data Simply Don’t Fit Into the “Round Holes” Put Forth by Established Infrastructure


Our Agenda




Thanks to Our Sponsors and Executive-Level Research Panel

N=163 , surveyed July-Sept. 2012

Marketing Services & Technology Providers:

66%

Publishers:23%

Advertisers/

Marketers:11%

Data Technology Has Evolved Organically—Originally Aimed at Enabling the Aggregation of Anonymous “Third-Party” Digital Data

“Third-Party”

• Other Publishers/Advertisers

• Digital Data Exchanges

• Media Networks

• Commercial Data Compilers

The Data Management Platform (DMP) Emerged Organically to Address a Wide Range of First- and Third-Party Data Sources

“Third-Party” “First-Party”

• Other Publishers /Advertisers

• Digital Data Exchanges

• Media Networks

• Commercial Data Compilers

• In-House Marketing /Advertising

Groups

• Lines of Business /

Internal Data Owners

• “On-site” /Product Owners

• Other Titles (Publishers)

Despite Advances, Interpretations of the Role of the DMP Still Differ

“Makes important

data available in a

central location”

“A tool to ingest and store massive amounts of data”“360-degree view

of our data assets”“Provides a complete view of customers”

“It’s about

audience”

“Take any data source

and make it actionable”

“A ‘Big Data’ activation solution”

“A tool for optimizing interactions”

“Where we push

segments for

media targeting”

The DMP Aggregates, Integrates, Manages and Deploys Disparate Data

77%

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?”

92%

“How would you say that your (or your clients’)

interest in DMP solutions has changed over the last

several years?”

Source: Winterberry Group

Six Primary Use Cases Have Emerged—Defining the Long-Term Role for Data in Advertising, Marketing and Publishing

Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications

Developing Rich, Actionable Audience Segments for Expanded Media Sales

Optimizing the Digital Customer Experience

Use C

ases

Collecting and Managing Independent Feeds of Digital Data

Powering Targeted Online Advertising

Empowering Deeper, More Insightful Customer Analytics

Cu

rren

t Matu

rity

INTERMED.

ADVANCED

INT. (Adopt.)

LOW

LOW

LOW / INT.

Use Case: Collecting and Managing Independent Feeds of Digital Data

Intermediate, but rapidly

trending to Advanced

High

• Collection and integration of disparate streams of digital consumer data—both first-party and third-party

• Enables data management and activation from a central location

• The “master use case”

Maturity Growth Potential

Use Case: Powering Targeted Online Advertising

Advanced High

• Enables the economical, value-oriented purchase of advertising media—as well as optimization of message, creative and offer

• Delivers messaging to “the right audience at the right time” when and where they appear online


Use Case: Empowering Deeper, More Insightful Customer Analytics

Intermediate (Adoption) /

Advanced (Maturity)

Moderate

• Powers deeper understanding of consumer behavior, enabling highly accurate audience segmentation and upstream product development

• Strengthens other use cases: enables more sophisticated media buying and selling, better customer experience managementMaturity Growth

Potential

Use Case: Optimizing the Digital Customer Experience

Low Very High

• Enables the recognition of an online visitor, as based on their expressed and inferred interests, previous interactions with a brand and third-party browsing activity

• Informs targeted messaging and creative treatments, with an eye on driving improved relevance


Use Case: Developing Rich, Actionable Audience Segments for Expanded Media Sales

Low / Intermediate Moderate / High

• Enables identification of actionable audience segments (based on analysis of their online behaviors and known interests)—allowing media to be valued at a premium

• Powers expansion of those segments by using powerful analysis to identify “lookalike” elements


Use Case: Integrating Disparate Data Sets—Traditional and Digital—to Deliver Multichannel Customer Communications

Extremely Low Extremely High

• Enables recognition of an individual across channels—online, on a mobile device, via direct mail or on the e-commerce site—and powers relevant messaging and creative treatments at all touchpoints


87% 83% 81%74% 73%

63% 63% 63% 59%54%

Need to improve ad targeting

effectiveness

The shift to "audience buying"

Want more connected customer insights

Emergence of automated

digital media buying

Want to optimize

media buying efficiencies

Need to realize the potential of

cross-channel marketing

Need tools to manage large amounts of

data

Need a strategy for tackling "big

data"

General need to gain

competitive advantage

Need to connect off-/online data in a privacy compliant

way

“Which of these factors are major contributors to growing interest in (and

demand for) DMP solutions?”


Interest in Data Platforms Is Being Driven by Widespread Need to Target Audiences Across Media

96% 92%

64%58% 56% 55% 53% 51%

First-party behavioral

Third-party behavioral

Offline Social media Search Mobile Location-based Email

Note: Panelists were asked to select all applicable data typesSource: Winterberry Group

“What types of data are currently managed by DMPs?”

Despite the Long-Term Potential of “Multichannel,” DMPs Today Are Geared Primarily to Support Digital Data Applications

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


“Which issues would you describe as ‘major hurdles’

inhibiting faster data technology deployment?”

The Challenge to Deeper Deployment Isn’t Technology: It’s Internal Operating Barriers


Our Agenda




Over the Next 12 to 18 Months… Technology Functionality Will Expand

Over the Next 12 to 18 Months… Analytics Will Become a More Integral Component of the “Data Stack”

Over the Next 12 to 18 Months… Platforms Will Grow More Specialized

Over the Next 12 to 18 Months… Data Will Decouple from Technology

Over the Next 12 to 18 Months… The Landscape of Global Solution Providers Will Consolidate

Over the Next 12 to 18 Months… Advertisers, Marketers and Publishers Will Embark on Process Transformation (with Technology in Mind)

In Summary: The Strategic Alignment of Data and Technology Represents an Opportunity to…

• Unite the interests of advertisers, marketers and publishers

• Present a foundational infrastructure for managing cross-channel customer experience

• Demonstrate the value to be received from other data and technology investments

• Initiate the activation of “big data”—putting the marketer in the driver’s seat for enterprise data strategy

• Make sure we always have enough acronyms to keep us confused!

Jonathan MarguliesManaging Director

[email protected]

www.winterberrygroup.com

Thanks! And Don’t Forget to Download “The DMP: Foundation for Right-Time Marketing”

beyond the data buzzwords jonathan margulies

Business

data technology

data compilation

data cards

waywe use data

square peg emerging

data management platform

crm demographics

demographics prospect