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What is Big Data?

3What is Big Data?

Josh Dreller Director of Market Research at Kenshoo

2,5 * 10 17

BYTES OF DATA PER DAY 2,5 QUINTILLIONS=2,500,000,000,000,000,000

THAT LOOKS LIKE THIS…

“Big Data is anything too big to deal with in an Excel spreadsheet.”

4Internet is a gold mine of customer intelligence

2012 2013 2014

2,5 Billion

BIG DATA Users info, online interests, communications, purchases, searches, social activity

40% of the world population

2,7 Billion

3 Billion

5 Hr / Day

5,5 Hr / Day

6+ Hr / Day

2012 2013 2014

160 Billion USD digital marketing budget in 2016

1: Internet Live Stats, July 2014 (elaboration of data by International Telecommunications Union and United Nations Population division)

3: Average daily time spent online by internet users worldwide, Global Webindex 20132: Forrester Research Interactive Marketing Forecasts, 2013

1 2

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5The value of customer insights

MARKETERS

Optimize digital adv investments

More efficient marketing campaigns to drive sales

& engagement with brand

Align organization around customer centricity

PUBLISHERS

Fight back print adv decline

Attract readers, keep them engaged, sell products

Grow inventory value

TRADING DESKS

Drive targeted audience buying at impression-by-

impression level

Integrate DMP intelligence to increase advertising

ROI and scale

Deliver the right message, to the right people,

at the right time

BUSINESS STRATEGY

RTB

DIGITAL

MARKETING

6Big Data for Publishers

“Big Data is the ability to customize and personalize a user experience in real time based on what you know about that user.”

7The Financial Times Case

Higher adv rates Better ROI for advertisers

AdvertisersOnline Experience Optimization

Digital Subscriptions

A/B testing Growing engagement

150,000 more digital than print

Content Creation

Data driven Performance based salaries

8

Quattroruote

9Facts

Quattroruote is "the" provider of automotive content since its foundation

Market leading websites and mobile apps: relevant, timely information to a high value audience

More than 4 million monthly UV, most of them looking to buy a car within the year

Relevant information and dedicated services:

News Price lists Quotations for second hand cars Car comparison Car configurator

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QUATTRORUOTE DIGITAL ENVIRONMENT

DB Market Intelligence & B2B Services

Car Inventory and Classified

Television and Multimedia

E-Commerce and Revenues-Oriented

Mobile & Multiplatform

Social Media & Smart Mobility

Trade Marketing Creative Solutions

and Advertising

Integration between contents and services

Digital Positioning

11Facing the Big Data Challenge

We track behavioral data

We know what a user is looking for (brand, model, price, new vs second-hand. etc)

We profile users

We personalize content based on navigation

We optimize navigation funnels through value added services

New value added services, currently in private Alpha test phase

12Expected Outcome

Increase Quattroruote Brand Lift

Broaden value added services to retain users and acquire new generations

Be a market leader in driving intention to buy effectively

13From the Big Idea to the Big Simulation

14Pricing Strategy

Big Data allows to predict customers’ sensitivity to prices and tailor offers individually, reducing margins erosion.

Banking Industry / Source: McKinsey Banking CVM Service Line

Promotional pricing set centrally

Attrition when offer expires

FROM

Statistical prediction of customer price sensitivity

Prices targeted individually

TO BEFORE AFTER

-200M€ yearly volume growth

-15% growth vs market

+800M€ yearly volume growth

+15% growth vs market

15In-store Spend

Customer uses credit card in store

Customer is profiled and located

SMS coupon for closest retail outlet is sent

Customer redeems coupon in store

Payment and Retail Industries / Source: Mobile Marketing Watch

A leading payment network and a retailer use real-time, transaction data to make time and location sensitive offers to customers.

In-store spend + 23%eCoupons redeemed in 2014 globally:

16 billion

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16Customized Online Offer

Banking Industry / Source: McKinsey Banking CVM Service Line

A leading US bank uses web browsing data to serve targeted offers to prospects based on their risk profile

High risk borrowers

Low risk savers

INPUTS

Website traffic sources

User navigation history (sites associated with low / high risk)

Internet data (location, social media)

RISK MODELS

Users scored based on data before the website is loaded

in > 0,5 sec

WEBSITES

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Customer logs to website

Customer profiled based on product holding and

history + browsing behavior

Test offers shown to selected group to

understand preferences and impact

Main offers tweaked accordingly

Customized Online Offer

+27% CTR

Banking Industry / Source: McKinsey Banking CVM Service Line

A leading EU bank runs experiments on the website to find out which visitor should be served which page

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+12% SALES

18

Barilla

19From 2014 to 2020 MarketingBig Smart Data enables Direct Marketing at scale

2014

2020

One message to fit all Long process (6 months) Consumers are getting used to seeing relevant, curated, tailor-made messages. Everything else will be ignored soon.

Big ideas, big launch, big budget

Insight Adjust Measure

BIG STRATEGY

Test with consumers Campaign, Websites, Adv

NEW BIG STRATEGY

Micro strategies, big insights, rapid iterations, Editorial Plan

Insights

Little Strategy

Interactive Cycle

PLAN DESIGN LAUNCH

MEASURE

PLAN DESIGN LAUNCH

MEASURE

Interactive Cycle

Insights

Insights

Little Strategy Little Strategy

Adjust

Adjust

A - Continue

B - Try something else

PRECISION MARKETING

Tailor-made messages at the right time. Zero dispersion. Fast and iterative approach.Get noticed and ultimately drive profitable consumer action. Brands need to be RELEVANT and TIMELY.

20Nel Mulino che vorrei online since 2009

AN ACTIVE, PROFILED COMMUNITY

100+ subscribers of which we know:

Socio demo data Consumption frequency by category Media diet Response to marketing solicitations What they buy where

ENGAGEMENT:

+7,6k posted ideas +300k comments +80 surveys +50k responders to a single survey +10k rewards delivered +5Mio Facebook reach

BUYING PERSONAS

21Extending knowledge through Big Data

Now using knowledge to profile anonymous users

FROM NAVIGATION DATA TO:

Socio-demo characteristics

Purchase preferences

Propensity to respond to solicitations

22

Turbo

23Big Data for Trading Desks

“Turbo is the first italian independent trading desk.

A trading desk uses technology, data and optimisation to purchase audiences at scale across digital media.

We buy – on behalf of our clients – at an impression-by-impression level, in real time, with targeting filters enabled. The quality of targeting directly impacts Programmatic Adv campaigns ROI.”

24From day 1, Neodata has been Turbo’s trusted DMP Tech Partner

DATA ENGINE

AUDIENCE

ANALYTICS DASHBOARD

DSP

Neodata’s technology empowers Turbo’s own DMP, allowing Turbo to create proprietary and anonymous custom audience segmentations in real time, enhancing scale, safety, efficiency and ROI of the campaigns they manage.

25Neodata is nowTurbo’s trusted Business Partner

DATA COLLECTION AUDIENCE SEGMENTATION DATA ACTIVATION

FIRST PARTY DATA

SECOND PARTY DATA

OTHER DATA STREAMS

Ingest and normalize a wide array of data streams.

DMP

Turn data into both insights and targetable audiences.

Data are elaborated according to segment rules set by advertiser.

INCLUDE / EXCLUDE Increased Targeted

Efficency

Real-time data flows to Programmatic Buying channels for targeted delivery.

LOOK ALIKE Increased Targeted

scalability

CROSS&UPSELLING Increased ROI and loyalty

Tailor-made, Programmatic Advertising-ready DMP Solutions for Brands

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“You focus on your business, we will do the maths”

Arrivederci