the data revolution…. - drake direct · an ibm survey of 1,700 cmos reveal… adobe education...
TRANSCRIPT
Th e Da t a Re v o lu t io n ….
An d t h e I m p a ct o n Hig h e r Ed u ca t io n
April 5, 2012
Perry D. Drake Assistant Professor, New York University
Partner, Drake Direct
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“More data was generated in
2009 than all prior years combined.”
-- Andreas Weigend
Former Chief Scientist, Amazon.com
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Why understanding data is important…
• “The world is moving into a
new age of numbers.”
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The Data Deluge…
According to a recent Economist article “The Data Deluge” (February 25, 2010):
Wal-Mart, a retail giant, handles more than 1 million customer transactions every hour, feeding
databases estimated at more than 2.5 petabytes—the equivalent of 167 times the books in
America’s Library of Congress.
Facebook, a social-networking website, is home to 40 billion photos.
By 2013 the amount of traffic flowing over the internet annually will reach 667 exabytes, according
to Cisco, a maker of communications gear.
The quantity of data continues to grow faster than the ability of the network to carry it all
Only 5% of the information that is created is “structured”, meaning it comes in a standard format of
words or numbers that can be read by computers.
The rest are things like photos and phone calls which
are less easily retrievable and usable.
But this is changing as content on the web is increasingly
“tagged”, and facial-recognition and voice-recognition
software can identify people and words in digital files.
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Wanting to provide that 360o view!
• Adobe buys Omniture http://adage.com/digital/article?article_id=139041
• IBM Buys SPSS, the competitor to SAS http://www.nytimes.com/2009/07/29/technology/companies/29ibm.html?_r=1&th&emc=th
• IBM buys Coremetrics http://www.dmnews.com/ibm-to-buy-web-analytics-firm-coremetrics/article/172567/?DCMP=EMC-DMN_DBMktingWkly
• Salesforce buys Radian 6 http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=147684&nid=125248
• IBM adds 2 social tools to its marketing technology offering
http://www.dmnews.com/ibm-adds-two-social-tools-to-its-marketing-technology-offering/article/199600/?DCMP=EMC-DMN_DBMktingWkly
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The Talent Shortage
• Marketing roles are changing as a result of the digitization of media
• Roles are becoming less siloed
• Marketers are expected to handle many responsibilities including
analytics
• SAS and SPSS are making tools more approachable
• Saying you are “creative” and not really comfortable with numbers is
no longer acceptable.
…a challenge for employers
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http://online.wsj.com/article/SB10001424053111903885604576486330882679982.html
August 4, 2011
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http://www.nytimes.com/2011/10/31/business/media/ad-companies-face-a-widening-talent-gap.html?_r=2&pagewanted=all
October 30, 2011
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http://www.dma.org.uk/news/brands-hit-data-skills-shortage
December 13, 2011
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Want Proof? W
eb
An
aly
tic
s
Google Analytics
Digital Media
Marketing
Da
ta A
na
lytic
s
Mobile
Marketing
Sitecatalyst
So
cia
l An
aly
tics
Source: Job Trends, Indeed.com
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Want More Proof? P
rin
t
Ad
ve
rtis
ing
Market Research
Le
tte
rsh
op
Accounting
…hum, where’s the growth?
Marketing
Manager
Te
levis
ion
Ad
ve
rtisin
g
Direct Mail
Cre
ati
ve
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An IBM Survey of 1,700 CMOs Reveal…
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Background
CMO Study Launch • October 14, 2011 at the Harvard
Club in NYC
• Face-to-face interviews with 1734
CMOs, across 19 industries and 64
countries
• Largest study ever done with the
CMO executives
• Included B2C and B2B companies
• Neither size of company nor type of
company (B2C vs. B2B) showing
significant differences
• Obtain copy at
www.ibm.com/cmostudy2011
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An IBM Survey of 1,700 CMOs Reveal…
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Key Points CMO and CEOs agree that two biggest forces affecting their organizations and
they feel anxious about their ability to cope them:
• Market factors
• Technology factors
CMOs see four challenges as pervasive, universal game-changers:
• The data explosion
• Social media
• Proliferation of channels and devices
• Shifting consumer demographics
CMOs and CEOs both agree that Customer Intimacy is crucial to compete
• Mining new digital data sources to discover what individual customer want
• Successful enterprises are focused on relationships, not just transactions
CMOs believe that ROI will be their primary measure, but struggle with skills
needed the understanding of how to calculate.
You must
Recognize there is
a data explosion!
• Students must be
prepared for the new roles
that are emerging.
• Forrester reports that
Digital ad spend will
overtake traditional
television ad spend by
2016 and stand at 35% of
all ad spend.
• College curriculums must
change or they will become
irrelevant!
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So many touchpoints!
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…So much data!
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NYU has been preparing students digitally since fall 2006!
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NYU recognized the landscape was changing and changing quickly
• Brought Sitecatalyst into the classroom in Fall 2009
• Beginner Web Analytics class students are introduced to the power of Sitecatalyst along with Google Analytics
• Advanced Web Analytics students are prepared to become Adobe Sitecatalyst certified and receive a 50% discount off the certification test.
• NYU holds six sections of the beginner class and one section of the advanced class every semester (including the summer session).
• One section of the beginner class is online.
• Classes are held in a 3-day seminar format.
• Adobe support is fantastic and immediate for faculty and the students.
• Adobe is even there for us during weekend classes if necessary
• They provide all base teaching materials and training data sets
• We have customized with cases and other exercises
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Why Omniture?
• Adobe Sitecatalyst is the “Lexus” of Web analytics tools
• Giving students the ability to become Sitecatalyst certified opens doors,
even for companies not using Sitecatalyst.
• Having Sitecatalyst on one’s resume says to a potential employer “I am
at the top of my game, I understand metrics, what is important and how
to view customer data in a strategic sense.”
• Is Sitecatalyst perfect? Of course not.
• Does Google Analytics have some advantages? Of course.
• No tool is perfect for every situation.
• But Sitecatalyst is close!
• And the students love the sexiness of their reporting capabilities
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How Sitecatalyst helps prepare students
• Dealing with siloed Data
• Issues of inappropriate campaign attribution
• Measuring social media ROI
• Deployment of A/B split testing
• Dashboarding, how and why
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…Siloed Data
• When an organization’s customer data is stored in silos, it can’t be used effectively to
provide a 360 degree view of actual behavior.
• Many companies are unable to provide targeted relevant experiences due to siloed
data.
• Integrating online and offline channels is something that‘s very much on the minds of
retailer and is forcing them to understand how to manage relationships across
multiple channels.
• For retailers, one can purchase in three places: Website, Catalog or Store.
• Problems most faced by retailers are matching the prices and products found on their
Web site to those found in the store or being able to recognize a customer properly in
all three channels.
• Nothing frustrates a consumer more than not finding the same DVD player in the
store that he found online, or finding it at a different price.
• One of the main obstacles is legacy systems.
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Doing it Right
• A major rewards program registers names on the web via search ads, mail
campaigns and in-product promotions. They entice visitors to register every visit and
to sign on via facebook or other social handles. They appended Omniture tags
(which holds visitor clickstream data) within their database to assist them in better
segmenting and messaging their customers for future promotions.
Doing it wrong
• BestBuy placed Kiosks in their stores to allow consumers to check prices online of
competitors. Problems arose when some found their in-store prices were not the
same as their website prices.
…Siloed Data
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…Inappropriate Campaign Attribution
• Siloed data also makes it difficult to evaluate the performance of marketing
programs across channels.
• As the number of channels regarding customer interactions increases, it
becomes harder to understand where to attribute the sale and how to
apportion the marketing costs.
• The next major issue about to face marketers in this new digital world is that
of proper campaign attribution.
• Eventually, marketers will have access to robust warehouses of data
detailing consumer interaction with online and offline media, but….we are
not there yet.
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…Inappropriate Campaign Attribution
• Inappropriate attribution models frequently lead to incorrect conclusions
about the efficacy of campaigns.
• And, this is becoming more problematic as the number of channels
increases.
• The focus is typically on “last touch” conversion drivers.
• Receive a catalog day one
• Go to store day two
• Go to website day three
• Click on banner ad day four, go to site
and place order
• Click through to site via a promotional
tweet but do not place order
• Go to website via bookmark day 20
and place an order
What channel gets credit for the sale in each case?
CASE A CASE B
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…Inappropriate Campaign Attribution Adobe Education Webinar Series
http://mashable.com/2012/03/28/google-adobe-social-media/
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Within Sitecatalyst you can
assess traffic by source such as
social media referrer or even
unique campaigns within a
specific channel using SAINT
classification.
…Measuring Social ROI
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Lecture on the benefits of Adobe “Test and Target” and proper test design and
analysis considerations.
…Split A/B Testing
http://www.omniture.com/en/product_tours/offermatica/ab?fc=true&v_id=746106
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Students are mesmerized by the dashboarding capabilities of Sitecatalyst.
Take deep dive into KPI’s and dashboard design
…Dashboarding
Example dashboard students create in the Advanced Web Analytics class
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• The software used to support the quantitative sophistication required for making the most of your data include:
– Adobe Sitecatalyst
– Google Analytics
– SAS
– SPSS
– Radian6
– Lithium
So Prepare your students by enhancing
the curriculum with tools such as..
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For more information on the Adobe
Academic Initiative • Offers universities and colleges the
opportunity to stay on the cutting
edge of web analytics.
• Yearly competitions with real client
• Students receive:
• Discounts on various products
• online training opportunities
• Faculty receive:
• Free onsite training
• Workbooks and decks
• Live support
http://www.omniture.com/en/education/academic_initiative
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Perry D. Drake
Assistant Professor, New York University
Partner, Drake Direct, New York, NY
Follow me on Twitter: www.twitter.com/pddrake
Friend me on Facebook: www.facebook.com/perry.drake
View my Blog: www.drakedirect.blogspot.com
Delicious Handle: www.delicious.com/pddrake
Foursquare Handle: www.foursqure.com/pddrake
YouTube Channel: www.youtube.com/user/profpddrake
Company Website: www.drakedirect.com
Book Website: www.optimaldm.com
SAS Facebook Page: http://www.facebook.com/pages/SAS-for-Marketers-at-NYU/306298469394621
NYU Email: [email protected]
Secondary Email: [email protected]
Mobile: 914-299-4879
Fax: 212-759-9756
Thank You!
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Drake Direct Marketing Data Scientists