How Big Data And IoT Are Driving Digital Marketing
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Digital marketing is now a driving force for promotions and advertising across all brands. Online ad spends and digital promotional tactics, supplemented by traditional means of advertising have become the primary marketing strategy across industry sectors. From display ads on social media sites to targeted ads using Google analytics, brands are finding new and innovative ways to reach out to their target audiences in the space where they are most comfortable, i.e. the World Wide Web.
Two of the most important components of digital marketing solutions include Big Data and the Internet of Things (IoT). These terms have garnered great importance in the digital world today. Let’s first take a look at what each of these components entail.
What is Big Data?
Big data is the buzzword used to describe large amounts of digital information about millions of people across the globe. Big data records may consist of any information on the web including sales figures, online consumer behaviour, social media habits and patterns, mobile data, contact centres, customer queries and so on. It is termed as ‘big data’ due to its massive volume – which may be present in a structured or unstructured manner – and the difficulty in processing it using traditional analysis and database collection techniques.
Brands collect big data and work with analytics experts who are trained in the technology to derive solutions from this information to improve operations, customer interaction, brand promotions, build credibility and also to make faster and more effective decisions. When captured and analysed, big data can help a company derive useful information and insights to attract new customers or retain existing ones by employing optimised and effective strategies.
What is the Internet Of Things (IoT)?
Simply put, the IoT is the network of devices which can be connected to transfer data, on the internet or to each other, using an on and off switch. The list for this is endless; it can range from coffee makers to wearable devices, headphones to satellite TV sets, pacemakers that monitor the heart to even your iPod. The IoT is basically a giant connection which in turn connects a multitude of devices. In the IoT, connections can include relationships between people and people, between people and objects or even between objects and objects.
With the boom in the IoT, the new motto is ‘anything that can be connected will be connected.’ Gartner, a renowned analyst firm has indicated that by 2020 there are likely to be over 26 billion connected devices as a part of the Internet of Things. Innovations, promotions and new product launches are banking on this growing network to lead the world to a more advanced state of living. Imagine having an alarm clock that syncs with your calendar, wakes you up in time for a meeting, signals your coffee maker when you hit the snooze button; the coffee maker in turn signals the water heater, which readies your bath water and sends an indication to your automatic car to start in a few minutes; this car then programs the destination based on the input in the calendar which finally signals the app in your phone to order and restock groceries at home; and it goes on and on. This is the idea behind the Internet of things.
Significance With Respect To Targeted Digital Marketing
According to recent surveys, big data and the IoT are becoming crucial elements in digital marketing. Marketers are now increasingly developing highly targeted digital campaigns using these technologies to support their online promotional efforts.
According to a survey conducted by 2nd Watch, 38% of marketers are using big data, while 40% are starting to rely on the IoT to support digital marketing. These companies are still in the initial stages while 28% are already using it aggressively.
Here are a few interesting statistics from the 2nd Watch survey report:
- 29% of marketers use big data to understand their customers better while the second most popular reason is to help improve supply chains.
- 29% use the IoT to understand customer preferences while 24% use it to power campaigns and promotions.
- 14% of the companies use big data and IoT to drive mobile and web applications
- 47% of the marketers claim that big data based digital marketing efforts have proved effective in improving customer engagements.
- 70% of them say that they have successfully met or exceeded their digital marketing goals by harnessing the power of the IoT.
Currently, these are the most promising technologies in the digital marketing world and companies are using them across platforms ranging from advancements in science and innovation to improving performances of national sporting teams to even advertising and promotions of FMCG products. All in all, massive data volumes sourced from multiple and varied connected devices are analysed to uncover patterns, find correlations, and derive useful information about the relevant market segments. This helps companies in devising intelligent business solutions that can lead to more targeted marketing efforts and optimized digital spends.
With the rapid boom in this sector, data analysts and digital experts are in demand more than ever. Companies are on the lookout for professionals who can understand the challenges that these technologies present and employ effective solutions. With specialised data analytics courses such as the one offered at Edureka, digital marketers can further enhance their knowledge in the field and become experts in the aspects of Big Data and IoT.
With all the information gathered from surveys and by taking into account the progression in the field of digital marketing, it can be concluded that companies are taking strategic steps to expand into big data, IoT and cloud computing to improve the focus and impact of their strategies. It can be seen that there is a definite increment in the confidence levels of companies when it comes to foraying ahead with the support of these inventive and effective technologies.
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