While consumers might argue that ads bombard them every second they spend on the web, advertisers would express a frustration in trying to reach an audience. According to a 2014 infographic from Invesp, a company specializing in conversion optimization, only one in a thousand online ads get clicked. It also indicated that over 70 percent of marketers fail to target consumers with behavioral data.
Two years later, though, the game is changing. More companies are taking advantage of big data in boosting the effectiveness of their online ads. With the wealth of data available, businesses are able to get a more comprehensive view of their audience, allowing them to tailor their ads to these behaviors and attributes
How Big Data Changed Advertising
Cory Johnson, for Bloomberg TV, explained that big data has reshaped the competitive environment of advertising. Thanks to platforms like Google and Facebook, smaller companies have more opportunities to reach an audience. Bloomberg TV reported that Google’s ad revenues are around $50 billion.
“[Ad companies can] use the power of data to figure out emerging trends in a given moment,” Johnson said.
What this means, according to Johnson, is that advertising no longer needs big agencies to bring in impressive results. Anyone can access and leverage the tools for big data analytics to improve their reach and return on investment. According to a study by McKinsey & Company, companies using these data-driven techniques have 30 percent more revenue growth compared to their competitors.
“Harnessing this information to achieve better revenue growth is about more than accessing it.”
What Are The Strategies
An incredible amount of data exists online. In fact, IDC estimates that the internet will contain 44 trillion gigabytes of information by 2020. Harnessing this information to achieve better revenue growth is about more than accessing it.
Oracle, a provider of cloud applications, reported on some of the emerging strategies in big data-enriched advertising and marketing. The first was “enhanced look-alike modeling,” which helps businesses identify prospective customers based on how well they match current ones. Others include ad suppression, which keeps advertising away from low-probability prospects or existing customers, and intelligent retargeting, which helps redirect ads to target prospects after they stop interacting with a site.
How Cloudera and Hadoop Make It Possible
Beyond the strategies needed to collect the right information, big data is also about having the right platform to run the applications that make it happen. For that reason, Hadoop has been instrumental in this advertising revolution.
According to MapR, using Hadoop has allowed advertisers to improve their analysis, targeting, forecasting and optimizing strategies. Hadoop helps break down the large amounts of personal data that exist on the web today and use that information in real time.
On its website, MapR uses the example of Rubicon Project, an online advertising technology company that made a software to automate the buying and selling of online ads. Because these auctions occur in real time, managing and analyzing 3.5 petabytes of data each day, the company needed a system that could keep up.
“Our company cannot run without Hadoop and MapR. We rely on MapR’s self-healing HA, disaster recovery and advanced monitoring features to conduct 100 billion real-time auctions on our global transaction platform,” said Jan Gelin, the VP of technical operations for Rubicon Project. “We depend on automation; that is how we manage a lights out data center.”
Big data isn’t just a choice anymore. It’s a necessity for businesses that wish to improve the effectiveness of their advertising and collect more ROI. Having access to big data is one thing, but leveraging it means using the information to truly connect and engage with customers.