Download a free copy of the map at http://www.firstpartner.net/downloads The 2014 FirstPartner Data-Driven Marketing Market Map provides an overview of the processes and key players behind the use of consumer data for marketing purposes. The map highlights important trends in the collection and analysis of consumer data and describes how companies are using data to drive marketing initiatives and increase ROI. The map includes a visual overview of approaches to data collection and analysis, such as by retailers, the data processing ecosystem and the digital advertising ecosystem. It also gives a brief insight into the technologies enabling data processing and discusses the main concerns around the debate on data protection and privacy. FirstPartner is an independent research and proposition development company specialising in areas including Payments, Mobile Advertising, Mobile Value Added Services and M2M. For more information click on the “Get in touch” button or visit www.firstpartner.net to download a free copy of the map.

1. Payment Processing
Retail & Commerce
PoS Software e-Commerce Platforms
Retail Management & Logistics
Retail
2014 Data Driven Marketing
Uses of Data
Digital Advertising & Marketing
www.firstpartner.net
Introduction
Consumers are leaving an increasingly rich digital trail as they
navigate their on-line, mobile and off-line worlds. The ability of
companies to gather, analyse and act on this data is now at the
heart of consumer marketing and customer service.
This promises more meaningful customer relationships, greater
convenience and significant improvements in marketing
efficiency. It also brings concerns of privacy infringement.
This Market Map summarises the rapidly evolving ecosystem
underpinning and driven by marketing“Big Data”.
Consumer Big Data Trends
(1) DDMI 2013
(2) SAS 2012
(3) IDC 2013
(4) BIA Kelsey 2012
75%
Of Marketers worldwide use
consumer data to drive
marketing initiatives (6)
$156Bn
The revenues provided by
Data-Driven Marketing
Economy in the US in 2012
alone (1)
$20.8Bn
will be spent annually on
RTB worldwide in 2017 with
51% CAGR from 2012(3)
UK Digital Advertising
Spend in 2013(5)
8X
The ROI on marketing spend can be
delivered by personalized advertise-
ments (7)
$5.8Bn
Location-based ads spend
will account for by 2016, up
from 664M in 2011 (4)
Consumer Behaviour Drives Data How Consumers are Profiled
The Data Mix
Data describing multiple consumer characteristics are
combined to create profiles or segments. These are
used to identify and target audiences for display
advertising and personalised customer communica-
tions.
Combining Sources to Build Profiles
Data Providers & Aggregators
Profiles &
Segments
First Party Data Third Party Data
- CRM
- Purchase History
- Marketing Preference
- Loyalty
- Socio Demographic
- Additional Purchase
- Financial
On-line
Mobile & Location
On-line and off-line data from 1st and 3rd party
sources are combined to provide rich profiles of
target segments. Third party DMPs are
increasingly used
Data Processing Ecosystem
Privacy & Regulation
- Segmentation
- Micro-segmentation
- Store Clustering
- Basket Analysis
- In-store Behaviour Analysis
Shopper
Analytics
- Media Audit
- Brand Performance
- Brand Awareness
- Media Mix Optimization
- Campaign Effectiveness
- Tactics Optimization
Brand Marketing
Analytics
- Clickstream
- Visitor Tracking
- Closed-loop Marketing Analysis
- Cross-channel Monitoring
- Lifetime Value Analysis
- Social Media Sentiment
Digital
Analytics
- Portfolio Optimization
- Assortment Optimization
- Space Optimization
- Adjacency Placement
- Demand-based Store Clustering
Assortment and Store Space
Analytics
- Cost to Serve
- Margin Leakage
- Base Volume
- Price Elasticity
- Shelf Price Threshold
- Price Gap Optimization
Pricing and Promotion
Analytics
- Product channel segmentation
- Distributor Segmentation
- Sales Channel Strategy
- Sales Force Optimization
- Trading Partner Collaboration
- Location-based up/cross-selling
Channel Management
Analytics
- Demand Prediction
- In-Store Activity Optimization
- Broker Performance
- Supply Chain Performance
- Route Optimization
- Compliance Monitoring
Retail Execution
Analytics
Marketing RoI Improvement Revenue Growth Customer Satisfaction Brand Management Cost Reduction Operational Improvement
Business
Objectives
Analysis
Techniques
Data Driven Marketers
Balancing the tension between commerce, the individual &
governance
Regulator View Key aspects from different
international perspectives
The European Commission’s proposal on EU-wide data protection
reform is targeted for agreement before the end of 2014.
The reform is based on the following principles:
- One Continent, one Law - Single regulation for the whole EU
- One-stop-shop - Single authority to deal with within the EU
- Not tied to companies’establishment - Same rules for EU & non-EU firms.
EU harmonisation aims to reduce business compliance costs (estimated
£1.9bn yearly), however, the legislation will restrict the ways in which
personal data is used for marketing & create challenges for global
companies operating in more liberal data regimes such as the US.
The United States has a 'sectoral' approach to DP which relies on a
combination of legislation, regulation, and self-regulation. While
certain sectors may already satisfy the EU Directive, at least in part, some
do not. The European Commission has responded to 2013 revelations of
widespread surveillance by the US NSA with calls for strengthening of US
data protection provisions.
Consumers appear prepared to trade pricy for
benefits with 81% happy to receive tailored
offers based on items bought or viewed
(Deloitte). Younger people more readily share
their personal information online than adults,
especially in exchange for free services. They are
less concerned about companies sharing their
data with 3rd parties and 31% declare they do
not read privacy statements (Eurobarometer).
Data driven marketing promises advertisers and
retailers improved cross-selling and marketing
RoI but there are risks.
In addition to increasingly stringent European
compliance, 85% of sellers agree that any
significant breach in data security would
seriously harm customer relationships and
reputations (Forbes Insight).
Media & Entertainmente-commerce Financial Services FMCG Travel
Publishers
Agencies
Sell Side Platforms &
Exchanges
Demand Side Platforms
Ad Networks
Ad Servers
Targeting Enabled
Information Commissioner’s Office (UK)
European Data Protection Supervisor
EU Member’s Privacy Supervisory
Data Management Platforms (DMPs)
Retail Operations
Brand Marketing Analytics
Regulatory Bodies Key Institution with regulative power on Data
Protection and Advertisements
Enterprise Resource Planning
Type of Information
PersonallyIdentifiableData
Mobile & Location
6X
More time was spent on Retailer’s apps
in Dec 2013 compared t Dec 2012(8)
$6.3Bn
Preferences
Social Media
Demographic
Financial
Purchase
History
Biometrics
Location
Media
Consumption
Web Browsing
Direct email
Basic Targeting
General Segment
Targeting
Micro
segmentation
Geo-Targeting
Content Targeting
Real Target Ads
Up-selling &
Loyalty Rewards
Consumer View Privacy vs. Opportunities
Commercial
View
Marketing Efficiency &
Customer Satisfaction
Federal Trade Commission (US)
US Department of Commerce
Campaign Analytics & Planning
Audience TargetingDigital Media AnalyticsRetail Analytics
Technology
Enablers
Critical
Technologies
underpinning the
analytics ecosystem
Open source massively scalable
database technology
Hadoop
Open source database
management distributed system
Cassandra
Distributed data storage system
developed by Amazon
Dynamo
Databases that do not store data
in tables
Non-SQL Databases
Scalable computing resources
provided as a network service
Cloud Computing
Technologies designed to process
large real-time streams of events
Stream Processing
Digital & Social
Compositionof the DigitalTrail
produced by an Average UK Consumer
Subscription & Preferences
Social Media & Communication
Demographic
Financial
Purchasing History
Biometrics and Health
Location
Media Consumption
WebBrowsing
84% 80%
Of smartphone owners want
more mobile-optimized
product information while
they’re shopping in stores (3)
95%
Of shoppers own at least
one loyalty card and 88.2%
regularly use loyalty cards
when shopping. (2)
89%
Of Consumers agree they
want to be in control of
their online privacy (4)
37%
Of UK Internet
users are not aware
of Cookies (4)
Of Online shoppers use at
least one social media site with
Facebook being by far the
most popular (1)
Sources
(1) comScore 2013
(2) SAS 2013
(3) Moosylvania 2013
(4) iab 2013
Retail, Financial & Demographic
Tracking Service Providers
Cookies have until now dominated online tracking. The
rise of multiple browsers, mobile devices, and user
privacy concerns limit their effectiveness. Apple, Google
and Microsoft are developing proprietary alternatives.
The dominance of these players in browsers and apps
could make them “tracking gatekeepers” with
consequences for privacy and data neutrality.
Forecast value of economic
benefits produced by
Data-driven improvements
in customer marketing, in
the period 2012-17 (2)
$73.8Bn
Web Browsing
& Search
Tracking
- Cookies
- Ad Preferences
- Mouseovers
- Clickthrough
- Word Search
- Visiting Time
Demographics
&
Lifestyle
- Age, and Gender
- Marital Status
- Income
- Interests
- Leisure Activity
- Job
Mobile Usage
- Voice & Text Logs
- Geolocalization
- m-Shopping
- m-Financials
- Media Sharings
- Social Activity
Purchasing
Activity
- Time , Day, Freq
- Location
- Brand Preference
- Store Preference
- Loyalty Data
- Cart assortment
Media
Consumption
- TV & Movie
- Media on Demand
- News & e-learning
- Music
- Entertainment
-Social Media
Profile & Activity
Financial Data
- Credit History
- Cards Transaction
- m-wallet
- Location
- Trends
- Exps Category
Data Collection Approaches
AnonymousData
(5) iab/PWC 2013
(6) Teradata 2013
(7) McKinsey 2013
(8) Flurry 2013
Sources
Paid for Search Advertising
Spend in UK in 2013(5)
$3.5Bn
Loyalty & Promotions
Third Party Loyalty Services Providers White-Label Loyalty Service ProvidersProprietary Loyalty Programmes
Privacy Protection
Bodies
Schemes
Tracking Control
Data Control
FirstPartnerMarket
Insight
Proposition
Development
Product
Launch
Customer
Engagement
Andrea Pepe
Research Analyst
apepe@firstpartner.net
+44 (0) 870 874 8700
@firstpartner
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