- Category: Search Analytics - September 2015
According to IDC, the market for Big Data and analysis will reach 125 billion US dollars worldwide this year. Along with the dramatic increase of data, many new analysis options will emerge. In addition, new ad-tech companies will come up with fresh solutions, both for traditional marketing problems as well as issues in the field of online marketing. Therefore, it is not surprising ad platforms do their best to meet the needs of their advertisers by analyzing on one hand data and managing on the other hand all ad channels through a single dashboard. Simultaneously, mobile marketing and data companies merge to offer an all-in-one solution.
How companies deal with the large amounts of data, carry out individual analyzes, and create that loyal customers, is illustrated by the following:
Analysis helps to optimize digital advertising spending: Speak to your customers!
For the acquisition of new customers, the communication with the existing users is a fundamental starting point. By using huge data amounts, it is possible to gain a better insight into the needs and desires of customers. The data can show how product are used, or how users would like to use them.
If you develop a new understanding of what end users really want, you are able to create a better product, which impresses the users, and is a safer approach than just following your intuition. It’s no secret that satisfied users are also loyal customers, therefore, every company should place great importance on that data acquisition and integration, making it part of each user acquisition.
Always one step ahead of the competition: Use the information!
Currently, businesses of all industries are on the cusp of big data explosion. The sooner you familiarize yourself with the concepts behind large data optimization and the implementation in your own activities, the sooner you will also benefit from the competitive advantage.
A recent study by the McKinsey Global Institute, for instance, shows that companies can increase their profit margins by 60% with big data analysis. Who wants to ascertain a measurable increase in efficiency of marketing and sales activities, should constantly observe trends and make an extensive use of the information available. Thanks to methods such as datafication, predictive- and omnichannel analysis, data monetization, as well as personalized marketing, the extensive flood of data can be converted into valuable evaluations for customer acquisition.
Quality rather than quantity: Woo your potential customers!
The digital ecosystem is like a complex and fast-moving machine part. Brand new businesses and products are conquering the market at a rapid pace and it becomes clear that wooing valuable users at an affordable price is getting more and more difficult. According to a recent study by Digital Information World, for instance, it is possible to convert 70% of prospectives to customers via retargeting than gaining new customers from fresh leads. This is not really surprising, considering that it usually requires 7 to 13 customer contacts to convert a lead into a purchase. As every sales team will confirm, a successful conclusion of a contract depends to a great extent on being at the right place at the right time. Since it is not guaranteed to get purchase from new customers during the first contact, retargeting is a useful tool.
Besides, methods such as segmentation, clustering and predictive analytics, can help to conduct effective retargeting campaigns. By analyzing the performance and the user interaction with ads and apps, campaigns can be controlled more precisely. Today, it is possible to make exactly the right offer at the right time, increasing the lifetime value and the in-app sales.
Customer analysis plays a role after all: Do not waste money!
For many years the old saying of John Wanamaker, the father of modern advertising lingers, that half of the money that you spend on advertising is wasted; the problem would be only to find out which half.
That may apply to Wanamaker's lifetime, in the early 1900, but with the help of Big Data we can start to unravel this problem.If we consider the customer lifetime value, measured at the ROI an individual customer contributes while he interacts with the product, we are able to make better informed decisions about marketing budgets.
By measuring in-app purchases, for instance, the user-involvement level in the app gives insights to the user journey and collected analysis, allowing to make that way precise statements for the likelihood that users generate revenue and become long-term customer after viewing an app. Hence, it allows to measure campaign success not only on clicks and app installations, but can predict making a solid ROI from every customer for each dollar invested in an ad campaign.
It’s pretty logic that the big data phenomenon, data volumes and the diversity of new data sources are exploding around us and it is kind of incomprehensible why some organizations are still missing the analytic opportunities. There is a brave new world of insights out there and a lot of operational intelligence that can support to thrive.
By Daniela La Marca