For the last couple of years every media and advertising conference had at least one track or speaker on big data, ‘the new oil’, ‘a foundational mega trend’ or the perennially overused ‘like teenage sex’…
While the ‘experts’ argue over the exact definition of big data, the reality is that we are already all but drowning in the stuff. Unfortunately, this means the majority of marketers are unable to benefit from this mass of information.
With unprecedented amounts of data comes unprecedented opportunity, therefore, in order to effectively tap into these valuable insights, we need to turn to machines and, more specifically, Artificial Intelligence (AI). Until recently it’s all been about harvesting data, but now by leveraging AI we are moving into the far more exciting phase of prediction.
The study of AI has been around for years, but at last we’re beginning to capitalise on computer intelligence to assist in creating meaningful outcomes from our surplus of information. AI swiftly analyses data, recognising patterns and providing opportunities to meet the needs of consumers.
You only have to look to industry juggernauts such as Facebook and Google to see the interest in creating actionable insights from big data. They are not only employing AI experts in-house, but Google has even gone as far as buying not one but two Oxford University spin-off companies. Dark Blue Labs and Vision Factory are both industry leaders in machine learning and computer vision,
Why the sudden interest?
Until now, marketers have had to slice up the universe of potential customers along broad lines. For example, a marketer might decide that their audience fits a certain demographic, behavioural segment or contextual category. Sure enough, some of the consumers within these sectors may turn out to be valuable. But even more of them won’t.
Furthermore, it turns out that there are plenty of consumers outside of those prescribed segments who are of great value. It’s no surprise that people are more than just their demographic profiles; we are all multi-dimensional.
With AI we no longer have to look at the consumer universe in terms of broad segments. With the power to anlayse data effectively we can keep layering on more and more attributes, resulting in an increasingly sophisticated picture of each consumer.
To put this into perspective, Rocket Fuel’s AI powered prediction models evaluate more than 11 million individual signals, creating a highly sophisticated model focused on advertiser objectives. But, what’s more, campaigns run with AI are continuously learning and updating the model every 15 minutes to map predictions with actual responses.
What does that mean in practice?
Aside from the ability to have a one-on-one conversation with the customer, smarter predictions mean the ability to reach a consumer before or at the beginning of their path to purchase – as opposed to attempting to shift a buyer’s attention once their mind is made up.
And it doesn’t need to stop with digital inventory. Once we have the sophistication to accurately utilize this technology; there is no reason why in the very near future all advertising is not put through the same rigorous filters. This can only result in increased value for both customers and brands.
So is Big Data living up to the hype?
Absolutely, and it’s clearly so embedded in the pursuit of successful campaigns that it is here to stay. But data on its own is simply not enough. It’s what we do with it that counts and I believe success in the future can only be guaranteed when coupled with AI.
AI is to big data what human learning is to life experience. Combined they are defining the future of media buying and selling, and soon they will define businesses in general and, eventually, society at large.
JJ Eastwood
MD Rocket Fuel
Australia