Everyone’s talking about ’big data’ these days: politicians, academics and, of course, businesses – especially those involved in digital marketing and advertising. However, despite all the discussion it seems that a number of questions remain – with a main one being, who actually needs big data?
The short answer is: we all do. But if you find yourself unsure of what it is and how to use it, perhaps you need to think of data as a raw material. Like any other raw material, data needs to be refined, processed and managed. Just as crude oil doesn’t power our cars, raw, unanalysed data will not propel our businesses forward.
But the very name ‘big data’ highlights the dilemma: the digital world has opened a door to previously unimaginable amounts of information. You can track (and quantify) discussions, opinions and behaviours as well as the more obvious items such as what was bought, when, where and by whom. There’s so much data out there that brands can easily become lost in the blizzard.
So my advice to digital advertisers and publishers is to pick your data partners wisely and, to start with, aim to develop a full understanding in three key areas:
1) Demographics
This information is now more critical than ever as audience buying becomes the norm and we witness the convergence of TV media buying with its digital counterpart. Demographics focus mainly on the information surrounding age, gender and income. So, in order to tailor products and services to a particular group – and thereby maximise their value – it’s vital to understand the size and activities of each demographic combination.
2) Actions
The data surrounding consumer actions can vary greatly from client to client, so the idea is to identify the steps a consumer takes in completing a specific task. For example, the click stream to purchase (purchase path) will tell you a lot about what the most important triggers are for purchase, which will help you design the optimal media campaign and messaging.
After all, supermarkets spend millions of pounds every year understanding traffic flow through the store to maximise their customers’ purchase of goods. And the internet is just one giant grocery store!
3) Creative engagement
Data about how consumers engage with the advertising creative on a particular website, or across a demographic category, can tell you a lot about just what is and isn’t working. A/B copy testing, which is used very successfully to improve efficacy in TV advertising, is just starting to be used in digital. The good news here is that social media and other relatively inexpensive media make this kind of testing simple and quick, which means campaigns can be optimised on the fly.
Of course there are many more data sets to keep in mind, but focusing on these key areas to start can take some of the mystery out of big data and help businesses refine it to the point that it propels them to new heights.
With so much data available, you need to be specific about the information you will need to make your campaign or project more effective and focus only on the points that will get you there. If you get tempted to start exploring all the other data that’s around, you may never be seen again.