6TH Annual Hispanic Advertising & Media Conference

Unlocking Key Insights to Reach the Hispanic Consumer

BIG DATA: How Marketing is going from ‘Mad Men’ to ‘Math Men’

Presented by:

Oscar Padilla, Vice President of Strategy

September 20, 2012

Three Key Points I Want to Make Today

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Big Data it’s not just “big data”…it’s about a framework, tools, and technology

Big Data is more about Big Analysis and insights

Big Data is advancing how we market to Latinos

Big Data – Understanding the Basics

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Potential of terabytes to petabytes of data

How quickly does the data move across the enterprise when you need to make a decision?

All types of data are now being captured (structured, semi-structured and unstructured)

VOLUME VELOCITY VARIETY

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People toPeople

People tomachine

Machine tomachine

Netizens, VirtualCommunities,Social networks,Web logs…

Archives, medicalDevices, digital TV,E-commerce, smartCards, bank cards,Computers, mobiles..

Sensors, gps devices, Bar code scanners,Surveillance cameras,Scientific research…

2.9million

20hours million

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Emails,Sent every second

Of videoUploadedEvery min

TweetsPer day

What Type of Data are Marketers Collecting?

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Source: 2012 BRITE-NYAMA Marketing in Transition Study

Which of the following kinds of customer data does your marketing department collect or have access to?

Mobile phones/devices

Social network ties & influence

Social media content

Customer usage

Customer transaction

Demographics

0% 10% 20% 30% 40% 50% 60% 70% 80%

Offline Data

Digital & Interactive Data

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Big Data Brings Significant Value to Businesses

Source: 2012 University of Texas Austin. Measuring the Business Impacts of Effective Data. In a comprehensive study of more than 150 Fortune 1000 across diverse industries

Big Data is Critical to the Bottom Line

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Companies using big data outperformed their respective markets and have created sustained competitive advantages

Source: September 2011, McKinsey & Company

Big Data Leaders Other Competitors

How is Big Data & Analytics Applied Today to Reach Latinos?

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IT’S NOT... But This is What We’re Seeing in the Market Place Today…

● Targeting assumptions based on mostly on survey and sample methods (i.e. “Latinos over-index on mobile usage”)

● Focus on traditional top DMAs

● Campaigns based on brokered list data, often just ethnically-coded data

● Stereotype approach; they speak Spanish, consume Spanish media, heavy online users…therefore, good target

● Little or no cultural relevancy, focus on country of origin

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Sample Data Provides a Narrow Viewof the Hispanic Consumer…

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Consumer Habits

| Hispanics Sample Data View | Analytics View of Hispanics

Transactional Data(POS, CRM, loyalty e-commerce)

Digital Media Interactions

Relevant Analytical ModelsCultural References

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Actionable Insights is an Evolving Process

The Evolution Stages to Hispanic Actionable Insights

• Testing market

• No in-language experience

• Mass media, single channel

• No dedicated Hispanic team

• Lack of understanding how to use analytics

• Business challenge: -Cost Efficiency (#1)

Stage 1 • Retains Hispanic

agency

• Use focus group

• Multi-channel, often not integrated

• Top Hispanic DMAs

• Bilingual experience

• Qualitative data use

• Business challenge: -Cost Efficiency (#1) -Revenue Growth (#2)

Stage 2 • Increased ability to

capture, aggregate and analyze data

• Use analytics to guide actions

• Growing use of insights to guide future strategy

• Business challenge: -Revenue Growth (#1) -Profitability (#2)

Stage 3 • Use analytics to

prescribe actions

• Effective at sharing information and insights

• Strong ability to capture, aggregate, analyze or share information

• Strong use of insights to guide day- to-day operations -Business challenge: -Revenue Growth (#1)

Stage 4

The Value of Insights…Moving from a Data Commodity to High-Value Assets

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Value

Refinement

+ Actionable Insights

+ Data

+ Information

+ Cultural Filters

Touch Points

A Big Data Approach to Hispanic Marketing

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How Does it Work?

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Customer Visualization Application

Big Data Analytics

Data Management & StagingData Sources

Client Data Files

Unstructured Data

Luminar Data

Insight Solutions

3rd Party Data

Customer Data Mash-up

BI Portal

Real-Time Cloud Insights

Where Does Luminar’s Data Come From?

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●We aggregate consumer transactional data from loyalty systems

●Data sources contributed to Luminar include complete transaction POS files

●Sources also include online transaction data from retailers such as Amazon.com and Barnes & Noble

●We incorporate data sources that include individual, household, demographics and lifestyle information

Our Data is aggregated from over 2000 diverse sources

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Lets Review Examples of Big Data

Denver, CO Voter Analysis CPG Chicago Market Product Analysis

LUMINAR ANALYTICS EXAMPLE:DENVER VOTER FILE

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The Power of Voter & Consumer Data

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Public Voter Information Luminar Consumer Behavior Data

How we do it: We mash-up voter file against consumer databases and analyze those individuals on political issues to produce actionable insights

Denver Voter File Profile

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Source: Luminar Insight App. 2012 Denver voter file analysis

DENVER VOTERS:Total of registered voters: 411,256Hispanic voters: 54,818 (14%)Luminar Hispanic voters: 55,334 (94%)

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Denver Hispanic Assimilation

Source: Luminar Insight App. 2012 Denver voter file analysis

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Denver Hispanic Assimilation

Source: Luminar Insight App. 2012 Denver voter file analysis

Based on this insight, registered Hispanic voters are predominantly Spanish-speaking or at a minimum, bilingual.

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Denver Hispanic Party Voter Consumption

Source: Luminar Insight App. 2012 Denver voter file analysis

Persona A – Working Mother

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• My name is Irma Gonzales, and I am a Hispanic female in my mid 30’s. Married with two children, I have lived in New York City for 12 years - however, I do not speak English very well. I am a Democrat, voted 2 times in the last 8 years

• During the last three months, I have gone to the supermarket multiple times and spent $200 (per trip) on the products mentioned above.

• I also use these opportunities to buy necessities for my children, as well as special treats.

Communications Strategya) Emotional connections to educationb) Moderate voterc) Predominantly Spanish speaking, deliver

communications in Spanishd) Persuasion / GOTV

Persona B – Luminar Hispanic Insights

• I am a proud bilingual Hispanic in my 50’s, with 12 years of residence in Denver.

I’m a registered republican, and voted in the last 3 elections• My passion are books, so I spend my free time reading novels. • Usually I buy my books through catalogs, paying with a credit card.• Sometimes, I also get presents for my grandchildren and spend an average of $72

each time I place an order.

Communications Strategya) Super voter, republican. b) High acculturation c) Protecting Latino family messages…

“GENERIC” CPG BRAND ANALYSIS FOR CHICAGO MARKET

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CPG Company Seeking Insights

● Diversified CPG across different brands and categories

● Analysis based on Chicago market

● Data analyzed; 800,000 records

● Client was seeking brand intelligence pertaining:

- Store and shopper insights

- Consumer behavioral insights

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It’s Starts with Questions About your Consumer and Shopping Behavior

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● What is the size of their basket purchase?

● How much is spent in groceries per month?

● What is the purchase cycle?

● How frequently do they go grocery shopping?

● What weeks of the month do they usually buy

groceries?

● What supermarkets do they shop at?

● What is their level of acculturation?

● What is their income level?

● Do they prefer to speak in English or

Spanish?

● How many people per household are there?

● Where do they live within my trading area?

Luminar Insight App Overview

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Basket Analysis

Frequency Purchasing Cycle

Brand Comparison

Brand Social-demographics Income Level

Luminar Insight Apps delivers analytics and insights through an intuitive web-based portal customized to clients’ needs

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Source: “Generic” CPG Brand Analysis | Chicago Market.

BASKET PURCHASING | helps shed insight into questions such as:• What is the size of the basket purchase?• How much is spent in groceries per month?• What else is in the purchase basket?

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Source: “Generic” CPG Brand Analysis | Chicago Market.

BRAN SOCIALGRAPHICS | helps shed insight into questions such as:

• Brand is the income level?• What is the level of acculturation by brand/region? • What is the brand/income level per household?

How is Client Using Analytics?

Analysis being used to help:

- Understand in-store behavior for trading area

- Define micro-targeting strategies based on overall purchasing patterns

- Enhance the multicultural shopping experience by targeting more relevant messages

- Competitive price comparison

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Some Final Thoughts…

1) Remember, big data is more than Data. Big Data gives you powerful analytic tools for greater accuracy, transparency, and predictive power

2) Use more diverse data. More diverse data leads to more insights, don’t be married to just one source

3) Solve a real pain point. Think about your core business problems and how to solve analyzing big data

4) Big data is about finding meaning and context. In other words, reaching actionable insights, connecting the dots

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Oscar Padilla, Vice President of Strategyopadilla@luminarinsights.com(866)375-4224 office

Please contact me directly to receive a copy of this deck or discuss our services