Big data and analytics can help a business predict consumer behavior, improve decision-making across the board and determine the ROI of its marketing efforts. By addressing these aspects adequately, the business would not only be able to protect its market share, but also expand into new territories. Below is a detailed look at this topic. To learn more, checkout the infographic below created by Villanova University’s Online Master of Science in Analytics degree program.
The global digital advertising space was worth $154 billion in 2015. By 2020, the industry will be worth over $250 billion, largely driven by big-data initiatives including mobile internet, display internet, paid- search internet and classified internet. For this reason, more and more chief marketing officers are allocating more money to market analytics, with the average American business allocating 6.5 percent of its marketing budget to analytics. Additionally, analytics are increasingly driving marketing decisions. When making such decisions, 40.5 percent of CMOs consider consumer insight, 42 percent consider customer acquisition and 35 percent consider customer retention. Some of the techniques marketers use to gain consumer insight include location-based targeting, customization, and an increase in mobile and real- time reporting. The sources of business data include internal, external and a combination of the two sources. There are three levels of data analytics: descriptive analysis, predictive analysis and prescriptive analysis. The pros of big-data initiatives include better insight and decision-making, greater customer satisfaction and retention, and enhanced collection and dissemination of information. The cons of big-data initiatives include technological challenges, data verification and validation challenges, and the ability of users to interpret and utilize big data effectively.