You've got data ... now what?

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With all of the attention given to "Big Data" these days, perhaps it's time to step back, take a deep breath, and give some thought as to what this proliferation of information might mean to us as marketers and media folk.

First, let's state what is obvious to many: we've had a lot of consumer data to work with for a long time. For years we've had information on our print subscribers – such as where they live, how much they pay, how frequently they purchase, whether they are loyal or transient, their channel preference (or source), and when and for how long they take vacations. And, of course, they certainly let us know if we've screwed up.

We've had data on our private party advertisers – such as what type of car or pet they are trying to sell, how much their home is worth, credit card usage, etc. Perhaps we've even gathered data from fantasy football contests or local events. Some have augmented all of this with the acquisition of third-party data – such as household demographics, lifestyle behaviors, new movers, home values, voter registrations and more.

And now the digital world has spawned a tsunami of "Big Data" that challenges the appetite of even the most data hungry.

What are we to do with all this data? What is the endgame?

I would argue that, ultimately, the endgame is simply to "operationalize" your data. That is, the purpose of your data generation, integration and diagnostic efforts must be to EXECUTE activities that maximize profit. More data in order to perform better analytics is not the endgame. Better analytics support better decisions – but it is the actions that we take that result from those better decisions that represents the "endgame."

It is important to recognize that data, by itself, is of relatively limited utility. Like gasoline, you need someplace to put it to work. And like gas, the higher the quality, the more efficient and effective the operation becomes.

For the past 20 years, the most forward-thinking legacy publishers – and well-resourced – have consolidated all of this data in a common environment (aka data warehouse or marketing database), transformed this data into customer intelligence through analytics, and deployed campaign management techniques that drive audience growth, monetization and marketing productivity. This process is often characterized by a variety of rather grandiose terminology. My preferred grandiose term is data-driven marketing automation.

The Value of Big Data
So-called Big Data facilitates a number of critical business initiatives. The most tangible application in the eyes of many is to drive programmatic buying activities. Why might this be perceived as the most tangible? The reason is simply because the data can be applied in its raw form to automated, data-driven digital revenue generation with minimal modification or manipulation.

Such behavioral data is also growing in its use to make real-time content recommendations – again, an application requiring negligible alteration to execute.

But to perceive these as the primary applications of Big Data is to greatly under-leverage this asset in the EXECUTION of activities that grow audiences across all platforms. A perhaps more beneficial use of such data is in refining, enhancing and optimizing marketing campaigns that build online and offline audiences and optimize operational productivity.

Beyond Analytics & Dashboards
Let me be clear – this does not simply mean that we visualize this information on expansive dashboards that show us what content is driving site visits or similar metrics. Such dashboards have their value in putting information in front of us to support decision-making. But it is in putting those decisions to work through data-driven marketing automation where the deepest value resides.

This means that we put this data into action to dramatically improve the performance of our customer development and monetization initiatives through the EXECUTION of digital and print communications that are targeted, timely and relevant. When we operationalize our intelligence, good things happen:

  • Our customer development investments are more productive.
  • We maximize value TO the customer by delivering content and offers that are pertinent.
  • We maximize value OF the customer by increasing tenure, engagement and consumption.
  • We generate incremental revenue through more, and more targeted, advertiser communications.
  • Productivity is dramatically enhanced through automation, personalization and targeting.

Legacy Data Improves Big Data
It is important to recognize that Big Data does have its flaws.

  1. If it is associated only with an email address, a MAC address (in simplest terms, hardware) or IP address – as most is – it can only be deployed using digital channels.
  2. If that email, MAC or IP address cannot be associated with a physical address, the data cannot be integrated or enhanced with the plethora of consumer intelligence associated with a household.
  3. Massive amounts of data requires massive amounts of storage.

The first concern is irrelevant for those who believe that the only application of Big Data is to drive programmatic buys. But that would be naïve.

Point #2 suggests that Big Data could be even bigger data if we can figure out if email address john.doe@gmail.com is also a print subscriber, owns his home, is a customer at Macy's, etc., etc.

[Here is a teaser ... it can. That is the objective of what many refer to as a Single Customer View – the subject of Part II in this series.]

The third concern is really no concern at all if programmatic buys are the only application of high volume digital data. Because such purposes are most relevant in real time, it is not critical to store enormous amounts of historical data.

However, if you believe, as I do, that such data can support the enhancement and automation of marketing operations, sufficient historical data is required to facilitate analysis and exceptional marketing performance. That presents challenges for not only managing the massive volumes of data generated through digital engagement, but for how such data drives the EXECUTION of marketing communications that are optimized through targeting, personalization and automation.

But for that, you'll have to wait for Part III.

Tom Ratkovich is the managing partner of LEAP Media Solutions and can be reached at tom.ratkovich@leapmediasolutions.com.

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