1. Beyond the Buzzwords:
“Big Data” and the New Demands of
Right-Time Marketing
Jonathan Margulies 13 November 2012
Managing Director AMDIA Integra 2012

2. Winterberry Group: Supporting the Growth of Advertising, Marketing,
Media, Information and Technology Organizations
Strategic Consulting
• Corporate Strategy
• Market Intelligence
• Process Optimization and Alignment
• M&A Transaction Diligence Support
• Investment Banking Services, through

3. Our Agenda
Beyond the Buzzwords
• A Brief History of
Data
• How is Technology
Changing The Way
We Use Data?
• What Does the
Future Hold in Store?

4. To Put Things In Context: Today’s “Big Data” Opportunity Is
Addressable to Advertisers, Marketers and Publishers Alike
The Advertiser The Marketer The Publisher
• Reach • Direct Sales • Yield
• Awareness • Performance • Advertising Revenue
• Brand-Building • Response Rate • Gross Rating Points
• Gross Rating Points • ROI • Circulation
Audience Engagement

5. The Marketer: In the Beginning, There Were Subscriber Files…
Name
:
Addre
ss :
H. Catalogus
(0-~1980 A.D.)

6. … Which Begat Demographic “Selects,” Data Cards and the First True
Commercial Data Models…
NAME ADDRESS
PHONE
GENDER
AGE
INCOME
H. Catalogus H. Mailinglistus
(-~1980 A.D.) (~1980s)

7. … Which Begat Modeling, Segmentation, Coop Databases and—With
the Arrival of the Internet—E-mail Data…
H. Catalogus H. Mailinglistus
(-~1980 A.D.) (~1980s)

8. … Which Gave Rise to the Infrastructure—and a Whole Industry of
Service Providers—Focused on Data Compilation and Management
“Customer File”: Contact Info,
Persistent Identifiers
CRM, Demographics
“Prospect File”: Demographics,
Credit Scores
Interactions Logs
Transactional / Loyalty
“Single Source of the Truth”
Records
Public Records
Self-Reported “Intent” Data
Mr. John Q. Customer H. Analyticus
One Response Rate Way (~1990-2000s)
New York, NY 10001

9. The Advertiser: For Many Years, “Data” Was Whatever The Agency
(or the Media Provider) Said It Was
“ A the turn o f the 20 th ce ntury, publishe rs
t
fo ug ht a fie rce ly co mpe titive battle . Using
circulatio n fig ure s as we apo ns, publishe rs wo n
adve rtising do llars by flo o ding the marke tplace
with false and misle ading circulatio n claims. . . ”

10. Though Resources Would Emerge to Help Define the Size and
Structure of Media Consumers, Old Buying Models Persist
And advertisers generally haven’t been
aggressive in seeking “audience
accountability,” mostly due to…
•Relationships
•The visibility of mass
media
•Cultural resistance
from “premium”
brand publishers

11. Disrupting Both Models: The Internet
70% of
80% of U.S.
newspaper 84% of online 53% of
Internet users
readers now Americans Americans
engage with
consume watch digital made an online
social media and
content via video content purchase in 2011
blogs
digital platforms
Sources: Forrester Research;
Newspaper Association of America; Nielsen

12. Our Fundamental Problem Isn’t “Not Enough Data”
Artwork Source: David Harbaugh,
Harvard Business Review

13. In Fact, The Growth of “Digital” Has Brought With It a Deluge of New
Data Types
Postal Geo-/
Demographics
“CRM” History/
Surveys
Catalog/E-Commerce
Transactions
Retail Transactions
Print Circulation
Broadcast Ratings
Email Geo-/
Demographics

14. But The Distinctions Between “Established” and “Emerging” Datasets
Are Stark
• Structured: Keyed to name and geo-locators
• Media-Centric: Geared to needs of specific
Established
channels
• “Slow Spoilage”: Decays at modest pace
• Backed by Experience: Solid understanding of
value, use cases, technical requirements
• Unstructured: Collected via bespoke taxonomies;
anonymous with respect to the individual
Emerging
• Media-Agnostic: Reflects online browsing
behavior; useful for drawing wider inferences
• “Fast Spoilage”: Decays at rapid pace
• Still Early Days: Best practices in development

15. And They’re Compounded By a Series of Secular Marketing Trends,
Highlighting the Distinctions Between…
Known Names/Addresses… Focus on “Batch” Campaigns…
er
.C ustom Way
ohn Q nse Rate
Mr. J espo 001
O ne R rk, NY 10
Yo
New
… and Anonymous IP Addresses … and Real-Time Deployment
Single-Channel Focus…
… and Integrated Marketing

16. The Underlying Challenge: “Square Peg” Emerging Data Simply Don’t
Fit Into the “Round Holes” Put Forth by Established Infrastructure
?
Behavioral (Clickstream)
Intent (Opt-In/Registered and
Inferred)
Web Analytics (Geo-/
Technographic)
“Customer File”: Contact Info
and Demographics
“Prospect File”: CRM
Demographics, Credit Scores
Transactional / Loyalty Records
Public Records
H. Digitalus
Self-Reported “Intent” Data
(~2009-Today)

17. Our Agenda
Beyond the Buzzwords
• A Brief History of
Data
• How is Technology
Changing The Way
We Use Data?
• What Does the
Future Hold in Store?

18. Thanks to Our Sponsors and Executive-Level Research Panel
Advertisers/
Marketers:
11%
Publishers: Marketing
23% Services &
Technology
Providers:
66%
N=163 , surveyed July-Sept. 2012

19. Data Technology Has Evolved Organically—Originally Aimed at
Enabling the Aggregation of Anonymous “Third-Party” Digital Data
“Third-Party”
• Other Publishers/Advertisers
• Digital Data Exchanges
• Media Networks
• Commercial Data Compilers

20. The Data Management Platform (DMP) Emerged Organically to
Address a Wide Range of First- and Third-Party Data Sources
“Third-Party” “First-Party”
• Other Publishers / • In-House Marketing /
Advertisers Advertising Groups
• Digital Data • Lines of Business /
Exchanges Internal Data Owners
• Media Networks • “On-site” /
• Commercial Data Product Owners
Compilers • Other Titles
(Publishers)

21. Despite Advances, Interpretations of the Role of the DMP Still Differ
“A tool t
ata o ingest
o rtant d store m and
“Ma kes imp tral assive a
ble i n a c en mounts
availa n”
of data”
locatio “360-degree view
“Pro
of our data assets vides
” comp a
lete
out view
s ab e” custo of
“It’ enc “A ‘Big Data’ mers
a udi ”
activation solution”
rce push a
d ata sou e” here we medi
“Ta ke any abl “W nts for
t action
and make i “A tool gme geting”
for se tar
optimiz
i
interac ng
tions”

22. The DMP Aggregates, Integrates, Manages and Deploys Disparate Data

23. Interest in DMP Solutions is Substantial—And Growing Rapidly
“How would you say that your (or your “What type of role do you think DMPs are
clients’) interest in DMP solutions has likely to play in expanding the performance
changed over the last several years?” of companies’ long-term advertising and
marketing efforts?”
77%
92%
Source: Winterberry Group

24. Six Primary Use Cases Have Emerged—Defining the Long-Term Role
for Data in Advertising, Marketing and Publishing
Collecting and Managing Independent Feeds of
Digital Data
INTERMED.
Powering Targeted Online Advertising
ADVANCED
Current Maturity
Use Cases
Empowering Deeper, More Insightful Customer
Analytics
INT. (Adopt.)
Optimizing the Digital Customer Experience
LOW
Developing Rich, Actionable Audience
Segments for Expanded Media Sales
LOW / INT.
Integrating Disparate Data Sets—Traditional
and Digital—to Deliver Multichannel Customer
Communications LOW

25. Use Case: Collecting and Managing Independent Feeds of Digital Data
• Collection and integration of
disparate streams of digital
consumer data—both first-party and
third-party
• Enables data management and
activation from a central location
• The “master use case”
Maturity Growth Potential
Intermediate, but rapidly
High
trending to Advanced

26. Use Case: Powering Targeted Online Advertising
• Enables the economical, value-
oriented purchase of advertising
media—as well as optimization of
message, creative and offer
• Delivers messaging to “the right
audience at the right time” when
and where they appear online
Maturity Growth Potential
Advanced High

27. Use Case: Empowering Deeper, More Insightful Customer Analytics
• Powers deeper understanding of
consumer behavior, enabling highly
accurate audience segmentation
and upstream product development
• Strengthens other use cases:
enables more sophisticated media
buying and selling, better customer
experience management
Maturity Growth Potential
Intermediate (Adoption) /
Moderate
Advanced (Maturity)

28. Use Case: Optimizing the Digital Customer Experience
• Enables the recognition of an online
visitor, as based on their expressed
and inferred interests, previous
interactions with a brand and third-
party browsing activity
• Informs targeted messaging and
creative treatments, with an eye on
driving improved relevance
Maturity Growth Potential
Low Very High

29. Use Case: Developing Rich, Actionable Audience Segments for
Expanded Media Sales
• Enables identification of actionable
audience segments (based on
analysis of their online behaviors
and known interests)—allowing
media to be valued at a premium
• Powers expansion of those segments
by using powerful analysis to
identify “lookalike” elements
Maturity Growth Potential
Low / Intermediate Moderate / High

30. Use Case: Integrating Disparate Data Sets—Traditional and Digital—
to Deliver Multichannel Customer Communications
• Enables recognition of an individual
across channels—online, on a mobile
device, via direct mail or on the e-
commerce site—and powers
relevant messaging and creative
treatments at all touchpoints
Maturity Growth Potential
Extremely Low Extremely High

31. Interest in Data Platforms Is Being Driven by Widespread Need to
Target Audiences Across Media
“Which of these factors are major contributors to
growing interest in (and demand for) DMP solutions?”
87%
83% 81%
74% 73%
63% 63% 63%
59%
54%
Need to The shift to Want more Emergence of Want to Need to Need tools to Need a General need Need to
improve ad "audience connected automated optimize realize the manage large strategy for to gain connect off-
targeting buying" customer digital media media buying potential of amounts of tackling "big competitive /online data
effectiveness insights buying efficiencies cross-channel data data" advantage in a privacy
marketing compliant
Source: Winterberry Group way

32. Despite the Long-Term Potential of “Multichannel,” DMPs Today Are
Geared Primarily to Support Digital Data Applications
“What types of data are currently managed by DMPs?”
96% 92%
64%
58% 56% 55% 53% 51%
First-party Third-party Offline Social media Search Mobile Location-based Email
behavioral behavioral
Note: Panelists were asked to select all applicable data types
Source: Winterberry Group

33. The Challenge to Deeper Deployment Isn’t Technology: It’s Internal
Operating Barriers
“Which issues would you describe as ‘major hurdles’
inhibiting faster data technology deployment?”
73% 71%
63%
56% 55%
44%
38%
32%
15%
Internal process No clear internal No clarity into Lack of Lack of clear Concerns about Concerns over Lack of Prefer to wait
and marketing owner for DMP the role of DMPs established business case / privacy, security cost addressable for next
operations solution in the C-suite performance ROI and data data to fuel generation
hurdles metrics expectations governance DMP use technology
Source: Winterberry Group

34. Our Agenda
Beyond the Buzzwords
• A Brief History of
Data
• How is Technology
Changing The Way
We Use Data?
• What Does the
Future Hold in Store?

35. Over the Next 12 to 18 Months… Technology Functionality Will
Expand

36. Over the Next 12 to 18 Months… Analytics Will Become a More
Integral Component of the “Data Stack”

37. Over the Next 12 to 18 Months… Platforms Will Grow More Specialized

38. Over the Next 12 to 18 Months… Data Will Decouple from Technology

39. Over the Next 12 to 18 Months… The Landscape of Global Solution
Providers Will Consolidate

40. Over the Next 12 to 18 Months… Advertisers, Marketers and Publishers
Will Embark on Process Transformation (with Technology in Mind)

41. In Summary: The Strategic Alignment of Data and Technology
Represents an Opportunity to…
• Unite the interests of advertisers,
marketers and publishers
• Present a foundational infrastructure
for managing cross-channel customer
experience
• Demonstrate the value to be received
from other data and technology
investments
• Initiate the activation of “big data”—
putting the marketer in the driver’s
seat for enterprise data strategy
• Make sure we always have enough
acronyms to keep us confused!

42. Thanks! And Don’t Forget to Download “The DMP: Foundation for
Right-Time Marketing”
Jonathan Margulies
Managing Director
jmargulies@winterberrygroup.com
www.winterberrygroup.com