Category Archives: Business Information

The Marketing Technology Landscape

I’m not 100%  sure how to address the growing complexity of the marketing function, except to suggest that you take some time to re-evaluate and redefine what marketing is about. Consider layering in your technology mix along with your media and marketing mix. Then bring together a team of mobilists, technologists, data analysts and creative folks and you can get the ball rolling.

– Ted Morris, 4ScreensMedia

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The Zettabyte Era: A Brave New World of Devices

Cisco VNI 2011

 
Big Data is getting bigger. Here are some top findings from Cisco’s latest VNI – Visual Networking Index:
 
IP traffic will increase worldwide 4x by 2015, reaching 966 exabytes or just under 1 Zettabye (which is 10 to the 21st power).Factors that are driving this growth, include:
  • Video, as it is increasingly a part of nearly every networked experience.  By 2015, one million minutes of video – nearly two years worth – will cross the network every second.
  • More devices are connecting to the network – we forecast more than 15 billion will be on the network by 2015, making it on average more than two devices (whether it be a PC, phone, TV, or even machine-to-machine) per person for every person on earth (and if you’re like me, you’re an “overachiever” on this number, with well over a dozen devices connected to the network…by the way, just how many network connections are you responsible for?)
    • More people will be using the network – a total of 3 Billion people will be on the network in 2015, compared to 1.9 Billion estimated in 2010, due to increased broadband penetration – much of it mobile – and accessibility of lower cost devices.
    • Increased speed – overall connectivity speed doubled from 2009-2010 from 3.5 to 7Mbps and is expected to increase 4-fold to 28 Mbps by 2015.  This is relevant because when people can do more with the network, they tend to do so… video usage increases all the more which starts the cycle all over again.

– Ted Morris, 4ScreensMedia

 

The Social Maze

Where are all my customers?

 The funny thing about all the endless advocacy of social media is that nothing has really changed in the business of matching consumers with brands. Oh sure, now that consumers ‘control the brand’, companies are at the mercy of infantile twittering tantrums such  as when consumers don’t get their way (especially on an airline) hoping to unleash a social firestorm primarily with the hope of getting noticed for a nanosecond or two. (The same folks likely get back on the same airline, content to collect their frequent flyer points.) 

One would think, with all those folks splaying their private lives out in public via the likes of YouTube, Facebook, Twitter, Flickr and Foursquare – lest we forget this thing called a phonebook or the science of geodemographics and credit card purchase data – that people would be easy to find. In fact, with all of the yottabytes of data out there about consumers, it should, in the year 2010, be a matter of running an algorithm or two to find customers, understand preferences and match any product or offer with any consumer 24/7 in any country with high Internet penetration.  It would be the end to the need to advertise using traditional channels.

Funny indeed. The search and storage/processing technology required to make the social web possible has, as the main output, data. Whether you call it media or content it’s still really just more data taking up space on some distant server farm deep in the Mariana Trench. As such, are we all the wiser? Not really. With free cloud apps having a shelf life not much longer that the vegetables in your local supermarket, many are wary of the risks of implementing something that will be obsolete by the time it gets traction in the marketplace. With the yet to be proven value of social media monitoring and analytics, it’s not as if the world has abandoned representative random sampling or in-market product trials.  

Do companies really have the strategies, skill sets or business processes to effectively leverage the social web? With only $2 billion slated for social media spending in the USA this year, I doubt it. Yet, evangelists are forever hopeful, as that is their stock in trade. Like Charles Revson, founder of Revlon once said, “In the factory we make cosmetics; in the store we sell hope.”  

On the other hand, Charles Revson didn’t have social networks at his disposal but his customers had no trouble finding the Revlon counter.  

– Ted Morris, 4ScreensMedia

Data: The New Capital of the Digital Age

Data: The New Green

The Economist recently ran a special report on managing information that prompted some thinking. First, some big numbers from the report: Wal-Mart handles over 1 million sales transactions per hour. Facebook houses some 40 billion photos (after only 4 years of operation). Cisco estimates that Internet traffic will reach 667 exabytes by 2013.

 With some 60 million people on Twitter, according to comScore data (November 2009), there are roughly 10 million tweets a day. This doesn’t account for the content – characters, photos, articles and video content. I also found that YouTube has generated more video content than all of the television networks combined have ever generated. The current upload rate is equivalent to about 100,000 Hollywood movies being made on a monthly basis. Finally, almost 100 trillion e-mails were sent in 2009.  

Bringing this a bit closer to home, consider the number of daily transactions that take place for banking, air travel, credit card processing, phone calls and e-commerce. You end up with some very large numbers indeed. This data also says a lot about how we behave. Most intriguing perhaps is what it can tell us, through the use of complex algorithms, how we might behave at some future point in time – and where new business opportunity may dwell.  

This growth in the information industry is not reflective of recessionary times. It points to a shift in investment, new business models, the laying of new infrastructure (servers, storage, cloud computing, software) and global workforce expansion in business information. It’s also transformational as the CIO’s role is increasingly one of contributing directly to business growth in contrast to the dogmatic notion of keeping the lights on in the boiler rooms of Enterprise Resource Planning and Supply Chain Management.  

It’s the effect of the peta, exa and yottabyte world that is most intriguing. Conventional ways to sense and understand consumer behaviour  will be challenged by the new wave of business analytics. Marketing research is but one example. If predictive analytics can do a better job of identifying which category of SKU’s is trending upward or which meal combo is gaining favour, what will marketing research be used for? Data analytics can also be used to generate new ideas for services, products and as importantly, help companies shed under-performing assets and balance inventories. By implication, there is a clear line of sight to the financial payback as firms like Amazon and Marriott have learned.  

This point from the Economist is worth noting:  

“…all these data are turning the social sciences upside down, he [Sinan Aral, NYU] explains. Researchers are now able to understand human behaviour at the population level rather than the individual level.”  

It’s no wonder Big Tech (IBM, Microsoft, Oracle, SAP etc.) is loading up on search, storage and processing capability. In exchange they will reap new profits from the digital age, largely unnoticed from behind the curtain of social networks and online store fronts.   

– Ted Morris, 4ScreensCRM