What is "big data"?
Search engines might just be the key to identifying upcoming social trends. In Chapter 4 of Qualman's "Socialnomics", the idea of search engines as trend analysis tools is introduced (2013). When people use search engines and social sites, the data processed online is representative of user interests. This means that when internet users run a search on anything from diet regimens to celebrity gossip, the history of searched items holds information about trending data. The term big data refers to all digital content and items that people generate online. This means that big data includes all of the information that online users search for on search engines and social media sites (Qualman, 2013).
Search engines might just be the key to identifying upcoming social trends. In Chapter 4 of Qualman's "Socialnomics", the idea of search engines as trend analysis tools is introduced (2013). When people use search engines and social sites, the data processed online is representative of user interests. This means that when internet users run a search on anything from diet regimens to celebrity gossip, the history of searched items holds information about trending data. The term big data refers to all digital content and items that people generate online. This means that big data includes all of the information that online users search for on search engines and social media sites (Qualman, 2013).
What does big data have to do with marketing?
Companies can make use of the big data found within search
engines to determine upcoming trends that represent the interests of people
within a particular region. One example of a company successfully using big
data to market a product is Pepsi-Cola’s marketing campaign with Britney
Spears. Just before Spears reached stardom, Yahoo! found that searches for the
name “Britney Spears” were indexing high and increasing. Yahoo! updated Pepsi
about this online trend, and Pepsi was able to sign Spears to an inexpensive
endorsement deal right before she achieved her superstar status (Qualman, 2013).
What can we learn from big data?
Search engines have even been able to use trending data to
make predictions in the world of medicine and healthcare. Google even provides
a service called “Google flu trends”
because of the vast number of people who use search engines before seeing a
doctor when they experience flu symptoms (Qualman, 2013). Google has been able
to predict regional flu outbreaks weeks before the Center for Disease Control
and Prevention. This means that search and social data can actually be used to
help forecast and reduce the spread of disease! This truly demonstrates the
powerful implications of the information stored on the web.
Are we using big data to its full potential?
It is clear that big data holds significant information
regarding what consumers feel is interesting or important. One would think that
companies would be continually utilizing this information to direct their
marketing efforts, right? Interestingly, Google has only processed 1% of
available big data. According to Qualman, “big data is unstructured and the key
is trying to put structure around it so we can make predictions” (2013).
Imagine the possibilities for companies if trending data were processed to its
fullest extent!
Hey Ian,
ReplyDeleteThis is a great summary post on Qualman’s chapter 4. It’s absolutely mind blowing what big data can tell us. While we all realize the internet is very “big brother” and anything out there can be read, tracked etc., it’s amazing that this information can basically be used to predict the future (ok, maybe that’s a bit of a stretch, but it’s nuts what we can do with this data!).
Before reading this chapter I really didn’t know much about this concept. The fact that we can predict trends (like Britney Spears, flu outbreaks, or even the next President!) got me wondering how companies can utilize the data to better connect with and serve its consumers. If they can tell what the next big thing will be, well, then they have an opportunity to position themselves for success.
I found this great article on marketers using big data effectively. It’s probably no surprise that most of these companies are online or web-based, like eBay, Amazon, and Rent the Runway. They are able to detect trends from their consumers and therefore better their shopping experience and ultimately increase sales. Check it out: http://mashable.com/2013/05/06/cmo-data/
While big data collects any actions made online, it doesn’t necessarily gather customer intent or sentiment when making a purchase. So even though a company can tell that 35% of its customers buy product A with product B, does it know why these decisions were made? To me, despite having access to all of this important and useful information, there is still a need to understand consumer behavior. What are your thoughts?
Great post this week!
Lindsey
Lindsey,
DeleteThanks for the great feedback. I think it is interesting that all the companies you mentioned are web based. It would make sense that they leverage big data in order to understand the markets that they are serving. Detecting trends in the online environment is important because since we are all so connected to each other online, these trends can change very fast. I also agree that simply knowing the trend is not enough to be a successful business. Being able to read those trends and respond in a timely manner is extremely important. Also being able to understand why certain decisions are being made is important. Sometimes outside factors can have an effect on this, so it is important to understand everything that can change the way a market functions. Big data certainly does not solve everything but it is a great start towards a sound online strategy. Understanding consumer behavior is a much deeper topic and while big data is a part of it, it is not the entirety of what is important. The most important thing is understanding how to connect with the customer and delivering a great product.
Hey Ian,
ReplyDeleteGreat post! It really held my interest. You touched on a number of key points illustrating the power harnessing big data can have in regard to predictive actions. I have always felt that being able to master the power of analytics is not an easy task, but something everyone in our field should be familiar with. But being able to master it, in order to use that information to help you formulate a strategic plan moving forward, of how and when and where to engage your audience, is awesome. One trend we are starting to see happen, which basically takes the idea of "big data" o the next level, is marrying that to cloud technology. This pairing, according to (Athow, 2014), allows for predicative analytics to be more scalable, easier to work with, and much more easy to implement. Athow goes on to say that it exploits the advantages of the cloud to improve the return on investment and time to market for the most advanced analytics.
This idea, of being able to utilize these tools, and join them together, in order to gain a competitive advantage, is what most every marketer, and company looks for, moving forward. This type of forward thinking is what will separate those who do ok, from those who do great. Having knowledge of this however, and knowing how to navigate this environment is first and foremost. The next step however, is planning a forward progression, and carrying that plan through to execution.
Again, great post!
- Dan
References:
Athow, Desire (January,2014) What's driving big data and predictive analytics in 2014? Techradar Retrieved from: http://www.techradar.com/us/news/internet/data-centre/how-to-master-big-data-and-analytics-in-2014-1211834
Hi Dan and Ian –
DeleteThis big data discussion is pretty technical, so I started to wonder about how many companies really consider analytics or data trends before making marketing decisions. In an article from 2012, a study found that companies planned to increase their marketing analytics budgets 60% over the next three years (Moorman, 2012). This is definitely good news, and in line with what we’re learning about. But when marketers were asked: “In what percent of your projects does your company use available or requested market analytics before a decision is made?” the average score was only 37.2%! (Moorman, 2012). Granted, this survey was conducted a couple of years ago, but with all the information we can access and use to make informed decisions, you would think this percentage would be higher.
When it comes to analytics, many companies just use it to measure successes/failures post implementation, like “what was the ROI of this campaign?” It’s really important to use analytics even before, to measure trends and preferences in order to determine proper execution. If companies aren’t already, they should start to follow this process.
Do you have any experiences with using marketing analytics, whether is pre- or post-implementation?
Reference
Moorman, C. (2012, May 18). Using marketing analytics: I do, therefore, I think. Forbes. Retrieved from http://www.forbes.com/sites/christinemoorman/2012/05/18/using-marketing-analytics-i-do-therefore-i-think/
Dan,
DeleteThanks for the great feed back, I’m glad I was able to keep it interesting. What I took away from the chapter is that big data can be great for predicting future trends. Many companies were able to harness this data to help them understand when people’s tastes would change or even when up and coming celebrities would make it big.
Another thing I noticed is that while this is extremely helpful it does not necessarily answer all of the questions. Big data is useful as a starting point to try to predict future trends. It does not always answer all the questions though because outside factors can influence what people search for and post online. Online content is great and should but used but it is not a replacement for traditional means. I would use this as an addition to other methods.
Hey Ian and Lindsey,
Delete@Lindsey, I am currently running a Facebook "Like" campaign for an event I helping to market, where we are trying to increase the number of likes on the facebook page and then follow that up with a website conversion campaign. What we will do is use analytics to determine who has responded to "liking" our page, and then based off those numbers, launch a web conversion campaign to try and direct people back to our landing page where they can register for the event.
@Ian, I thin big data as you said, can not answer all parts of a marketing campaign, but i think it has a place both pre and post campaign. I think as we move forward, and we are able to harness the information big data can provide in a more focused medium, we will start to see its potential become even greater than it is currently.
- Dan
Lindsey,
DeleteThank you for the great feedback. I agree that companies increasing their analytics budget is a good thing. Being able to predict future trends is important no matter what business you are in. Most companies do use this to look back on performance and see if they met past goals but I think they should use it more as an early prediction system. Even if it is not 100% right it is a great addition to any other trend analysis they are using. I agree that this type of analysis should be done before making a decision to help a company make decisions about how to best execute any campaigns.
As for my personal experiences with marketing analytics, I do not have a lot of experience using it myself. I have used Google analytics for class projects in the past but the companies I have worked for did not use this type of technology. I wish they had because using big data as a tool to analyze trends is part of the future of marketing.
Ian,
ReplyDeleteI thought you did a great job analyzing chapter four of Socialnomics, thoroughly covering the important aspects in your blog post! "Big Data" continues to be of great importance in social media today. Search engine trends and research can identify popular topics and people, helping companies build successful marketing campaigns. I was also struck by the fact that Google was able to predict areas of the flu outbreak even before the CDC. This just proves that Big Data can be used as a marketing tool. If companies are able to view various subject matters of interest from region to region, they could better understand how to market to those specific areas. Qualman makes it clear that companies that can put structure around this Big Data can truly benefit, especially if a developing trend is seen before it becomes widely popular! Overall, Big Data will continue to be of great importance into the future.