Tuesday, 6 june 2017 | Redacción CEU
Investing in development and mining of data become what it is at stake of the successful leaders and multinational executives, encouraged by financial gurus of our time. Even so, this new approach does not lack of risk. Is online marketing ready to face that future?
The business world is a roulette. There are rules and it is possible to do numbers, even strategies can be developed. But there is always a risk of betting on the wrong number. In this unknown scenario, Big Data is presented as a safe bet. No one wants to be left behind. Just like the well-known as father of modern marketing, Philip Kotler, said: <<Today you have to run faster to stay in the same place>>. The whole world, especially, digitized companies, run in the same direction.
Nowadays, it is almost utopian to be disconnected and this digital world is not innocuous. The longer we are connected, we provide more information. Continuously, we give for free data about what we like to do, how we like to dress, what we eat, how we spend our money and where we are. We leave a digital track. But, who has these data? How are they managed? Are they actually relevant?
It would be a mistake not taking into account this potential of information when running any kind of business. According to one of the latest reports published by the National Statistic Institute a rate of 8.5% of the Spanish companies with more than ten employees, makes analysis of Big Data. That figure rises to 21.5% for companies with over 250 employees. In fact, a new market world is emerging where data is the key product. Such is the importance of this raising sector that there are already companies which work exclusively selling and managing data. Recently, a research team of Amnesty International reveals that companies are selling data for just a bit more than 7 cents of dollar per person.
However, most of this information is now within reach for any company. It can be found in internal sources, such as CRM; public sources, such as state agencies; or external resources, such as search engines or social networks. The volume of information that they can access is overwhelming. They know who we are, what our tastes and behaviors are, what we avoid and, even, what feelings we have. In the latter, they work thanks to the development of Natural Language Processing (NLP) and artificial intelligence. It is clear that the world of marketing is facing a big revolution.
We live within the movement of hyperpersonal communication. Our interaction with advertising is quite different than the ones in the previous generations disconnected from the network. What before was an insipid advertisement, now turns into an invader who contravenes our privacy and breeds rejection. Whence, the proliferation of ad-blockers. Old patterns are not longer useful. If everybody gets the same message, the message does not work.
The big advantage of digital marketing is that everything can be measured. It brings tangible data of advertising campaigns. We know how many people click on an advertisement, how many visits a webpage gets, where the users come from and what are their shopping habits. Besides they sign in the websites and offer us even more information. The development of Big Data technology can change all the aspects of our society. However, marketing offline should not be underestimated; neither the extra value that it provides, nor all that has been learned until now.
We stand on the threshold of the Fourth Industrial Revolution. It is a new era which has for insignia the digitalization of physical reality. We knew that information is power. But this power had never been as evident as now. Digital marketing faces a great challenge. If it achieves to adapt to this new environment, the opportunities will grow exponentially. On the other side, Big Data is not exempt of risk. These are the challenges to confront:
Right now, the amount of data that can be extracted is incalculable but little work has been done about their quality and relevance.
A generation who lives in social networks and is demanding. They do not like to be disturbed, neither waiting for anything.
The work variables pass from tens to thousands and permit the customization of the content. To take place successfully, the target audience needs to be explored deeply, or we can not get to it.
Ethical values are a factor to be taken into account. Prejudices can be copied and generate inequalities. Furthermore, legislation is slow and one has to be careful with the infringement of privacy.
There should be no exclusive use of technique, successful strategies have to be created as well. Only the professionals that achieve taking out knowledge from data, diagnosing problems, implementing solutions and developing tactics will succeed in transforming these data into economic assets and competitive advantages.
It can divert the attention from what really matters.
Technology moves at such speed that it is almost impossible to keep up.
The companies have to be open to think in new ways or they will not survive.
The columnist of Finantial Time, Tim Harford, claimed in an article: <<Big data has arrived, but big insights have not. The challenge now is to solve new problems and gain new answers without making the same old statistical mistakes on a grander scale than ever>>. Data world is a baby that is taking the first steps in digital marketing. We can not trust only in the search of the magic algorithm. Much more work needs to be done.
In order to get more knowledgement about Big Data and other trends of online marketing you might want to study a Digital Marketing Master.