MODULE III

BIG DATA
‘Big Data’ is a term used to describe analysis techniques and systems which exploit
the larger volumes of data that are now available for marketers.

The opportunity and challenge of Big Data for marketing is often described using the
Five V’s:

1) Volume
It refers to the size of Big Data. Data can be considered Big Data or not is based on
the volume. The rapidly increasing volume data is due to cloud-computing traffic,
IoT, mobile traffic etc.

2) Velocity
It refers to the speed at which the data is getting accumulated. This is mainly due to
IoT, mobile data, social media etc.

3) Variety
It refers to Structured, Semi-structured and Unstructured data due to different
sources of data generated either by humans or by machines. Structured data is
organized and conforms to the formal structure of data (E.g. bank statement), semi-
structured data, is semi-organized data. (E.g. Log files) and unstructured data, is
unorganized data (E.g. audio files)

4) Veracity
It refers to the assurance of quality/integrity/credibility/accuracy of the data. Since
the data is collected from multiple sources, we need to check the data for accuracy
before using it for business insights.

5) Value
Just because we collected lots of Data, it’s of no value unless we garner some insights
out of it. Value refers to how useful the data is in decision making. We need to
extract the value of the Big Data using proper analytics.

The Role of Big Data in Digital Marketing

The main advantage of big data is to learn much more about the customers. In
addition to the standard demographic information, companies are able to track
customers’ digital behavior. With the help of big data, customers’ lifecycle and
behavior are understood. For the business, to profile customers is very important
and they try to offer personalized and customized product/services to the customers
through their CRM platforms.

 Product Development is an area where big data is involved in predicting for

new products and services after analyzing past and current situation by
defining the relationship.
 Customer Experiences is another important use of big data. It provides
personalized, consistent, omni-channel customer experiences and better
capability to offer next-best actions in real-time.
 Real-time data helps to the companies to create real-time advertisements.
Consequently, the organizations can react the changes in the market fast and
keep the data continuously up-to-date.
 Fraud and compliance is another area, where big data to identify fraud issues
quickly to save money and reputation.

ARTIFICIAL INTELLIGENCE (AI)

While a number of definitions of artificial intelligence (AI) have surfaced over the last
few decades, John McCarthy offers the following definition, "it is the science and
engineering of making intelligent machines, especially intelligent computer
programs. It is related to the similar task of using computers to understand human
intelligence, but AI does not have to confine itself to methods that are biologically
observable."
AI increases efficiency through automation. This leaves people with more time to
focus on other tasks. But that is not the only advantage offered by AI. Here are some
impacts and applications of AI in Digital Marketing:
 1. Data-Backed User Targeting
2. Content Automation
3. Predictive Analysis Of Customer Behaviour
4. Real-time Customer Support
5. Automated Ads
6. Ad-Content Optimisation (A/B Testing)
7. Mixed Reality Integration

1. Data-Backed User Targeting

AI algorithms help companies analyse customer data and make predictions about
buying behaviour and thus eliminating intuition and guesswork in making marketing
decisions. One example is ecommerce ads that are based on browsing history and
wishlisted items. Similarly, Instagram depends on liked accounts and posts to decide
which ads to show users. Algorithms have helped companies like Netflix and Spotify
to drive user engagement and retention.
2. Content Discovery and Automation
Digital marketers can use AI algorithms to automate several basic and repetitive
tasks in order to save time and work efficiently. For example, AI tools help websites
surface the right articles or content to users given their current activity or
engagement point. Some of the tools allowing this automation are business
marketing intelligence platform [Link] and content creation tools such as Taboola,
Wordsmith, Articoolo, and Quill, which are already being used by some media outlets
to create highly-optimised news and content discovery.
3. Predictive Analysis of Customer Behaviour
Companies across the world are collecting data all the time about each interaction or
action taken by a user. Purchase behaviour drives recommendations and also helps
brands predict future purchases. Data management and predictive analysis can
collect data from second and third-party websites and services. This means that AI
algorithms are collecting data about users across websites and is not just limited to
one session. Such a repository of data could help companies to predict the potential
buyers of their product even before approaching them.
4. Real-Time Customer Support
AI-enabled chatbots have made it possible for companies to save hours of waiting
time for customers. Today, chatbots give users the impression of interacting with an
actual human being and that too in real-time. This aspects also helps companies in
providing a positive user experience and thus inspire brand loyalty. For instance,
Reliance-acquired Haptik lets customers chat with voice assistants to complete daily
tasks such as online shopping, travel bookings, food delivery among others.
5. Automated Ads
When it comes to online ads, AI plays a huge role in the current day. Google runs one
of the world’s largest online ad networks and its automated bidding feature enables
marketers to tailor their ad bids based on the likelihood that an individual impression
will lead to a click or conversion. Google’s machine learning capabilities prioritise
brand and business agendas while automatically managing the amount spent from
the assigned budget. Google has specifically helped small businesses with AI-driven
local campaigns. This helps companies increase offline store visits by targeting the
right users in the vicinity.
6. Ads Optimisation
Besides targeting the right users through automated ads, Google also
offers responsive search ads which makes it possible for businesses to optimise
various versions of the same campaign without having to manually run A/B tests for
iterations. Businesses are required to simply feed in multiple headlines and
description lines in Google’s responsive search ads tool and then the company’s
machine learning tool automatically tests different combinations to find the best
combination for any search query and user. This intelligent tool is able to alter the
company ads for the same search depending on the change in context.
7. Mixed Reality Integration
Mixed reality experiences such as augmented reality-based customer experience
tools will help marketers drive more and more value from consumers and
viewers. For example Ikea’s Place app which uses augmented reality to help users
virtually place its range of home products in their house. Similarly, VR applications in
retail locations will help marketers sell products in a more immersive environment.
8. Dynamic Pricing
AI can be used to set the price of products dynamically depending on demand,
availability, customer profiles, and other factors to maximize both sales and profits. If
you’ve ever searched for a flight and then gone back to buy it a couple of days later
only to find it’s gone up a few hundred dollars, this is also a good example of
dynamic pricing at work.

MACHINE LEARNING
Machine learning can be best understood as the use and development of computer
systems that are able to learn and adapt without following explicit instructions, by
using algorithms and statistical models to analyse and draw inferences from patterns
in data.
Machine Learning is already being utilized in many areas of Digital Marketing. Here
are some ways businesses are using the tech to enhance their marketing efforts:
1. Personalization
For a business, personalization means hitting the customer with the right message at
the right time. This might be with an email filled with content they’d be interested in,
or products they might like to buy in the “recommended products” section on the
company’s website. Amazon is masters of this kind of personalization; 35% of their
revenue is generated from their recommended products machine.
Customers want to feel like a brand is speaking directly to them. Most of consumers
are likely to switch brands if a company makes no effort to personalize their
communication with them. Thanks to advances in Machine Learning, customer
experience will more personal than ever. Netflix is a pioneering company of
personalized user experience. Every time you log in, the TV decisions you make are
feeding their machine more and more data. In return, it feeds you with content that
it thinks you’ll want to watch.
2. Optimized Content
There are ways one can harness Machine Learning to craft content that resonates
better with your audience. Tools are available that learn which messages, tone, and
individual words impact your audience the most effectively. Firms can even use a
machine to write the perfect email subject line or Facebook post. Google is a huge
exponent of this kind of Machine Learning. The search engine’s ability to learn your
search intent has improved significantly in recent years – all thanks to its Machine
Learning capabilities. Today, it’s able to present you with more relevant search
results than ever.
3. Smart Bidding
Managers dealing with Pay per click (PPC) previously needed to spend hours
analyzing huge datasets to gain workable insights, Machine Learning can now aid in
many areas of the process. Google’s Smart Bidding uses Machine Learning to
optimize each campaign for conversations to increase ROI. Automation is also useful
for budget pacing and allocation, optimizing creative, reporting and targeting the
right audience. Social media platforms like Facebook, LinkedIn and Instagram are
developing ever-more sophisticated Advertising platforms too, allowing you to gain
the same benefits across your social channels.
4. Chatbots
Chatbots are revolutionizing the face of customer service and support. It’s a common
sight to see a chatbot pop up in the bottom corner of a website today. The
technology is reliant on machine learning technology to deliver better service to
customers. Chatbots are used by businesses to answer simple questions and queries
instantly. They constantly learn from customer responses, expanding their
knowledge base to better answer future queries. Available 24/7 and with no
customer waiting time, they’re a great way to use Machine Learning to improve your
service.

CHATBOTS
A chatbot is software that interacts with the users that land on your site using
automation and acting as if they were a real person or a customer service agent. This
program can process all of the natural languages that might be used and can
maintain a conversation that is coherent with the user through chat.
Chatbots have impacted digital marketing in a number of ways, including:

 Gathering initial information from leads.

There are details you need to gather from every lead before any meaningful
conversation can happen—like their contact information, whether or not they’re
already a customer, and the areas where they need support. Chatbots are a much
more personalized way to gather this information (instead of, say, contact forms)—
and are much more time-efficient than gathering the information yourself.

 Real-Time Customer Support

One of the main ways that chatbots have had an impact on digital marketing in the
last few years is by allowing real-time customer support. They can handle any
customer service questions that come up and you don’t have to hire any extra
personnel on board to handle it. You can automate as well as manage all of the
activities for customer support by using the chatbot. There are plenty of things that
the chatbot can do to help you when it comes to digital marketing like soliciting
feedback from users, offering discounts on products, answering questions about
products that are out of stock and much more.

 Taking Orders

The chatbot would also be able to help you when it comes to taking any orders for
your products or services. They are efficient at this and they can not only take the
orders, but they can also process the payment and arrange the necessary supplies.
This is a good way to ensure that the orders that your customers are placing are
done properly and that there are no mistakes made since the robot is incapable of
any errors.
  Aids in Promotion and Sales

The chatbot can easily replicate various behaviors that are natural to any human
being and at the same time they can offer better support for online marketing. It will
put to use some of the rules that are predefined that will allow them to cleverly
respond to the inquiries that the consumer is making. It can also help the customer
when it comes to locating any product that they might need and offering them
anything else that could work along with that. You should always make sure that you
are thinking of the chatbot as the first line of defense and leave the harder questions
to the actual customer support agents. This would allow for you to better manage
your employees and their workload without the customer support suffering.

VOICE SEARCH
Voice search is the process of querying the internet through your voice. Rather than
having to type your search terms into a search engine, you can simply talk into your
device and search what you want. It’s not just simple, but also convenient. It involves
a smart device, like a mobile phone that you can talk with. You essentially speak with
a coded computer system that listens to your query, processes it, and responds to it.
Examples of such voice platforms or assistants include Alexa, Siri, Cortana,
and Google Assistant or Google Now.

Let us discuss how voice search impacts the digital marketing landscape:

 Prioritizing Featured Snippets

You all are already familiar with the featured snippets, the search results that get
featured at the top of the SERPs. It has a vital role in ranking your pages and gained
much importance with the voice search as well. While asking a question to any voice
assistant, it first reads the featured snippet for your search query. That simply
implies you need to effectively strategize and optimize your content in such a way
that it attains a featured snippet on Google’s SERP. By creating high-quality content
in question-answer format, you can achieve this goal.

 Changing Search Semantics

Most of the people use a conversational tone while using the voice search. For
instance, they may be typing “coffee benefits” while doing the normal text searches,
they may ask “what are the benefits of consuming coffee” for voice search. So, it has
become more often users like to phrase what they want to search as questions.
Voice search is natural and conversational in nature, so the semantics of search
queries gets prioritized with an impact on the digital marketing landscape where you
need to change the overall marketing strategy, re-evaluating the keywords used in
the content.
  Voice Search and the Mobile Devices

In this modern era where technology is always evolving, people are no longer
searching only on their desktop devices. Voice search is dominating the mobile
environment as its hands-free features along with mobile makes a convenient tool
for the users. It simply means that most of us make use of voice search in our mobile
while we are driving, cooking, learning, etc.

 Voice Search & Local SEO

Most people use voice search to easily find things in their local area. For example,
folks may be searching “petrol pumps near me” or “Chinese restaurants near me”
and reach there without chaos. Studies show that around 22% of voice search
queries are looking for location-based content that made local businesses take this
opportunity to plan a powerful SEO strategy for voice search. Doing so will drive
traffic to your business website and hence grow the sales. Focussing on both voice
search as well as standard search in your local SEO tactic can pave a dominant way to
ensure that the customers near you can have quick access to your information via
quick searches on their smartphones or smart speakers.

VR & AR
One of the most common misconceptions about Augmented Reality is that it is the
same thing as Virtual Reality. In reality, they are more like opposites. Augmented
Reality adds digital elements to the real world around a user. Virtual Reality, on the
other hand, puts a real user in a virtual world. Extended Reality (XR) is a new term
that encompasses all immersive technologies (VR, AR and mixed reality. Let us have a
look at the role of VR/AR in digital marketing:
 Revolutionizing the Shopping Experience

When heading out to the mall for shopping is not a trend anymore, AR and social
networks like Snapchat are coming to the rescue. Trapped by COVID 19, AR gives
marketers and brands the power to thrive without putting consumers at risk. E.g.
Gucci recently launched its first-ever shoe-try-on lens with Snapchat using the
powers and style of augmented reality. All you have to do is scan the promo shop
code and get access to try-on the latest trends in footwear fashion.

 Enhanced Engagement

Virtual concerts, fashion shows, and augmented tours are allowing brands to
entertain, educate, and launch without a physical audience. Social networks are the
platform and in many cases, no headset is required. John Legend (an American
singer, songwriter, actor, and producer) with Wave, a social music venue, hosted his
first virtual live concert. The virtual concert attracted more than 500,000 attendees
and raised awareness for Legend’s FREEAMERICA campaign, with the goal of
transforming the U.S. criminal justice system. Attendees watched John Legend’s
avatar perform his legendary songs which marked history in virtual reality events this
month. During the live event, the real John Legend took to his social channels to
interact with his fans.

 Immersive Storytelling

VR allows consumers to ‘be there and be them’ – it’s the ultimate storytelling tool.”
The same applies even if you swap the ‘VR’ for an ‘AR’ – the immersive experience
they both provide leads to great storytelling. The beauty of these technologies is that
they allow for brands to take their consumers on a journey, drawing them into a
more personal relationship with the brand. National Geographic has taken a large
step for AR by taking climbing the world’s highest mountain using immersive
storytelling and AR.

 Meet new consumer needs

With companies like Niantic making use of these advancements in mobile

technology, both VR and AR (though mostly the latter) edge closer to greater
popularity thanks to convenience. This convenience (or laziness) helps to establish
VR and AR technology’s permanent position in our tech world. When experiencing a
new brand, consumers want to be fully immersed in the experience, but without
having to put in much effort. With this space in the market, the new technology can
settle into a niche – catering to the desire for experience without much action. From
online shopping to meetings, the growing popularity of VR and AR removes the need
for physical action, favouring time and efficiency other traditional means.

 Enhancing brand image

Consumers now look for VR and AR presence as a telling sign of a brand’s strength
and innovation. With this new enthusiasm, brands and marketers are recognising VR
and AR technology as being vital in setting themselves apart from other businesses.
The technology allows for marketers to build their consumers’ trust by showing them
the backend of things; showing consumers the journey behind getting their product
into their hands. This move not only allows consumers to experience products closer
than ever before, but also provides digital marketers will valuable information about
the customer experience. As VR and AR continue to grow in popularity, marketing
will become even more consumer-focused.
 IoT

Internet of things (IoT) is a network of physical devices connected with each other
through the internet. The device could be smartphones, laptops, tablets, computers,
smart TVs, vehicles, smart home appliances, door locks, wearable devices like
smartwatches, heart and blood pressure monitors. These devices use sensors and
actuators to collect and exchange data from their environments with each other
devices through the internet.

IoT devices not only help to exchange data but actually helps to gather and create a
customer database, which is very important in this digital era. With the help of the
customer database, digital marketers can get better marketing insights and create
more accurate digital marketing strategies.

With the help of IoT, digital marketers can understand, what customers actually
expect from their brands, which will help to improve their product quality. Internet
of things not only helps to increase the product quality, but it also helps to forecast
the demand and plan for new products. Accessing data from IoT devices will help
businesses to make better and faster with better decisions. The role of IoT in digital
marketing is as follows:

Analyze customer’s buying behavior

IoT helps digital marketers to understand the buying behavior of customers from
start to finish, and it will give a clear view of where the customer is in their buying
journey. It also helps to analyze the needs of the consumer, purchasing pattern, what
trends impact the purchasing pattern of consumer, and location that allows
marketers to customize the products accordingly. IoT can provide more accurate
information about consumer’s preferences.

Big Data

Smart devices allow marketers to gather lots of data about consumers which will be
used for effective marketing campaigns. IoT devices can provide lots of data through
sensors about consumers than traditional research. Big data provides more accurate
insights that will help marketers to reduce risk and increase opportunities.

Data tracking

Data tracking from IoT devices will help marketers to predict when a customer needs
a particular product or services. It also used for timing of sales and the real-time
customer insights help marketers to boost sales.
Better Personalization

Personalization is an effective way to reach, and engage your audience. IOT helps
marketers to connect with their customers on a real-time basis. It helps to target the
audience more accurately, and it improves the effectiveness of the marketing
campaign. IoT allows you to gather a variety of information about your customers
which will help you to identify what type of campaign should engage your customers.

Marketing automation

Normally marketers spend lots of time, and effort to gather customer data. But IoT
helps marketers to save time on gathering and analyzing data.

Customer satisfaction

In today’s digital world, everyone wants the fastest customer service, and it is of
utmost importance for every marketer. With the help of real-time data, marketers
can respond to their customers faster.

Better connectivity

In IoT, any smart devices can be used as a channel to connect with your customers.
So every smart product will help marketers to connect with their customers, and that
leads to more customer engagement.

BLOCKCHAIN

Blockchain is best described as a series of digital records, known as blocks, which are
linked together without the need for third-party verification. Blockchain is originated
from the distributed ledger technology. This technology can be described as a
distributed database that consists of shared private or public records of all
transactions made. Thus, the records contain all information from different digital
actions that have been executed and shared in the blockchain’s network.

Again, other disruptive technologies like analytics and artificial intelligence have
benefited enterprises more than the consumers, however, blockchain seems to be
leveling the playground by allowing consumers to have power over data. Some of the
ways in which blockchain has transformed digital marketing are:

1. Granting the Power of Data to Consumers

Consumers are able to get the value of data, thanks to blockchain. In the past,
businesses have been able to pull data and information from their customers. From
Wal-Mart to PetSmart to Google to Amazon, these entities have been harvesting
your email addresses, phone numbers, names, and physical addresses to help them
with their marketing campaigns. Today, the companies are able to target consumers
with the right marketing messages, send personalized marketing information to
consumers, and monitor the purchase journey of consumers. The end result is an
improved sales process, customer retention, improved customer relationships, and
building of loyalty.

2. Authentication & Transparency

Previously, consumers purchased from various stores without knowing whether they
were purchasing what had been marketed to them. Now, consumers don’t have to
ask, it the item authentic? Is it organic? Is it manufactured locally? Blockchain is able
to offer answers to such questions. Companies can now verify the origin of an item,
where it was manufactured, who manufactured it or how much the workers who
manufactured the item are paid to do so. Today’s consumer care about the integrity
of processes used to create products, they care about the company’s integrity and
the processes of the companies. It’s not just about quality anymore. So, blockchain
steps in to make those demands by consumers possible.

3. Simplify Online Ad Spending

The area of online ad-spend has been too confusing for businesses. Companies like
Unilever are now making clear that confusing process with the use of blockchain
technology. The companies have created a trusted and verified string connecting the
ad dollar spent to the end-user. This has seen a company like Unilever save tens of
millions in advertising. While that is helpful to some businesses, it may see others
exit the market such as those entities responsible for verifying ad metrics.

4. Keyword Tracking

Blockchain can be utilized in tracking keywords, something that has been a challenge
for many marketers. Search engine algorithms have been changing every now and
then. Tracking keywords within different devices and deciphering a national versus a
local search has been a problem. The technology could be able to track keyword
across different devices in different locations allowing the marketers to use the data
and information they get to create campaigns that are data-driven and more
accurate.

5. Better Leads

Since blockchain transactions are decentralized, marketers have to go right to the

source for data collection: the consumer. Marketers can pay or incentivize
consumers for their data. Consumers who give your brand their data are likely
 already interested in your company. This makes scoring leads and conversions in the
funnel much easier, because these are already prospects ready for nurturing.

BEACON TECHNOLOGY
A beacon is a small, physical object that receives location data from nearby devices
via Bluetooth. Because it's Bluetooth-based, beacons can be deployed in areas with
poor cell reception, such as the interior of a store.
In other words, beacons describe the technology that enables mobile apps to
understand the geographic location of its user and then deliver relevant content to
them based on their immediate environment. Beacons play a vital role in the growth
of businesses by blurring the line between the digital and physical world, in the
following ways:

 Serving Premium Customers

When deployed beacon in physical venue, the process of greeting customers as they
enter or leave the store becomes virtually automated. Customers who are unsure
whether or not to enter will find themselves attracted to the shopping area with a
short message encouraging them to come inside to take a look around. For
instance: Think of a retail store greeting a customer with “Welcome Mr. Benjamin!!
Thank-you for being our platinum member. Beacons helps to know who is the loyal
customer and can also provide alerts to the all the sales associate to serve that
customer in the best possible ways.

 Tracks in-store customer movement

Beacons helps in tracking real-time location. It can work inside the multi-story
buildings or throughout the entire campus and tracks the whereabouts of the
customer’s movements within the physical space. This enables to know which path
they take the most, what parts of the store they visit frequently, in which area they
spend most of the time; which time and day they preferred for shopping. This data
helps the retailers to target their customers digitally by providing good offers and
discounts on the products they liked the most.

 Location based targeting help increase engagement

Location-based marketing with beacons is the key to bridge the physical world with
the digital world, providing contextually relevant content based on the user’s geo-
location. For instance: Beacon based mobile app can co-ordinate with the beacon to
 send relevant offers when a person is a particular department of the retail store.
Based on your location, beacon triggers tailored messages sequentially to improve
shopping experience based on the specific criteria such as customer’s shopping
habits, preferences, location and other details. It pushes relevant messages at the
time of purchase which helps the customers to make their shopping pleasant and
fast.

 Connects offline behavior to the digital activities

Rather than pushing an offer directly and immediately, it is always better to push ads
as per the customer’s behavior; and proximity marketing works the best to get full
insights. Whether you are in retail, bank, sports or stadium, beacons enables you to
engage with the offline customers with relevant, targeted offers and service
message.

 Provides smooth customer experience

In today’s world, no customer would prefer to waste their time by standing in the
long queues to pay the bill in retail store, check-in or check-out in the hotel and
much more. Brands always look for the new ways to improve customer experience.
With beacons, you can blur the physical and digital space by greeting guest with their
last name, accelerating check-in/check-out process, notifying the house-keeping if
the guest are still in their rooms and much more.

5G Technology
In telecommunications, 5G is the fifth-generation technology standard for broadband
cellular networks, which cellular phone companies began deploying worldwide in
2019, and is the planned successor to the 4G networks which provide connectivity to
most current cell phones. Let us take a look at the 5 key ways 5G will impact digital
marketing:
1. Personalization will become increasingly important
The faster internet connections will see the number of internet users grow at an
even faster rate than previously, with connections possible from more remote and
more dynamic locations. This hyper-localization will add an additional layer to
persona segmentation, with personalisation and targeting becoming increasingly
important.
2. Augmented reality will become a daily reality
Marketers too have already been experimenting with augmented reality, with some
of the better executed campaigns clearly illustrating its potential. WWF are one
organization who have really taken on the challenge of utilizing augmented reality
into their awareness campaigns, with several great examples - from “Arctic Home”,
to Free Rivers.
3. Ad-blocker usage may drop
The lower latency that will come with 5G may mean that consumers are less
compelled to use ad-blockers. Currently, more than a third of people who use ad-
blockers say that the slow load speed is their major complaint. 5G will solve that and
enable marketers to get more ads out to more people much faster than before. This
could also help to create more positive relationships between brands and
consumers, with the frustration over slow-loading ads no longer a concern. This may
have some impact on the overtly negative sentiment felt towards Internet ads at this
time.
4. Analytics will become real-time
What 5G will enable is the real-time integration of a wider range of actions and
impressions. In the future, if a customer makes a purchase, they may automatically
cease to receive any advertising related to that product or product type.
Fundamentally, this will improve targeting, segmentation, customer experience
and customer journey, and improve efficiencies for both brand and consumer alike.
5. The importance of video will increase
5G is going to further enhance video, with mobile and live video being major
beneficiaries of the increased speed of the network. This goes some way to
explaining why several of the major social media platforms have made live video a
key new feature and why most emerging platforms are also video-focused. This
unique feature enables brands to uncover up to 250% more mentions than purely
text-based analytics tools and provides you with the power to optimise your video
marketing strategy.