Big Data Analytics: Advertising

The concept of marketing and advertising has changed drastically over the past 30 years. Businesses run marketing campaigns differently because of big data analytics. This post aims to do a cursory compare and contrast analysis the marketing methods of the 1980s with the digital marketing methods of today that use big data analytics.

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Advertising went from focusing on sales to a consumer focus, to social media advertising, to now trying to establish a relationship with consumers.  In the late 1990s and early 2000s, third party cookies were used on consumers to help deliver information to the company and based on the priority level of those cookies banner ads will appear selling targeted products on other websites (sometimes unrelated to the current search).  Sometimes you don’t even have to click on the banner for the cookies to be stored (McNurlin, Sprague, & Bui, 2008).  McNurlin et al. (2008) then talk about how current consumer shopping data was collected by loyalty cards, through BlockBuster, Publix, Winn-Dixie, etc.

Before all of this in the 1980s-today, company credit cards like a SEARS Master Card could have captured all this data, even though they had a load of other data that was collected that may not have helped them with selling/advertising a particular product mix that they carry.  They would help influence the buyer with giving them store discounts if the card was used in their location to drive more consumption.  Then they could target ads/flyers/sales based on the data they have gathered through each swipe of the card.

Now, in today’s world we can see online profiling coming into existence.  Online profiling is using a person’s online identity to collect information about them, their behaviors, their interactions, their tastes, etc. to drive a targeted advertising (McNurlin et al., 2008).  Online profiling straddles the point of becoming useful, annoying, or “Big Brother is watching” (Pophal, 2014).  Profiling began as third party cookies and have evolved with the times to include 40 different variables that could be sent off from your mobile device when the consumer uses it while they shop (Pophal, 2014).  This online profiling now allows for marketers to send personalized and “perfect” advertisements to the consumer, instantly.  However, as society switches from device to device, marketers must find the best way to continue the consumer’s buying experience without becoming too annoying, which can turn the consumer away from using the app and even buying the product (Pophal, 2014).  The best way to describe this is through this quote by a modern marketer in Phophal (2014): “So if I’m in L.A., and it’s a pretty warm day here-85 degrees-you shouldn’t be showing me an ad for hot coffee; you should be showing me a cool drink.” Marketers are now aiming to build a relationship with the consumers, by trying to provide perceived value to the customer, using these types of techniques.

Amazon tries a different approach, as items get attached to the shopping cart and before purchases, they use aggregate big data to find out what other items this consumer would purchase (Pophal, 2014) and say “Others who purchased X also bought Y, Z, and A.”  This quote, almost implies that these items are a set and will enhance your overall experience, buy some more.

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