Andreas Weigend @aweigend www.weigend.com

1. Andreas Weigend @aweigend www.weigend.com HSM World Marketing and Sales Forum The New Data Revolution:Impact on Marketing Strategy November 2010

2. In The Last Minute…

3. Who creates data? Production: Everybody. Data as digital air How will this data be shared? Distribution: Everybody is a contributor What will this data be used for? Consumption: Help people make decisions

4. It’s about… …bridgingthe physicaland the digital

5. Where Are Decisions Made? • Brick and mortar • Traditional media • Web • Mobile Trust? One-way push vstwo-way communication?

6. Who Helps With Decision Making? • Friends (people who like you) • Real life • Online • Peers (people like you) • Experts • Institution? • Past action? • Reputation/ brand as shortcut for attention • Ad hoc groups (e.g., for car purchase)

7. Social Data Revolution Howthe Changes (Almost) Everything

8. 1970’s BuildingComputers

9. 1980’s ConnectingComputers

10. 1990’s ConnectingPages

11. 2000’s ConnectingPeople

12. 2010’s ConnectingSensors

13. Mobile Phones • Capture context and situation • - Ambient sound, light • - Geo-location (place, movement) • Allow for lightweight interactions • - Micro-tasks (annotating) • Attached to a person

14. Underlying?

15. Time Scales Biology: ~100k yrs Social Norms: ~10 years Data, Technology: ~1year

16. Creation / Production of Data • The amount of data each person creates • doubles every 1.5 … 2 years • after five years  x 10 • after ten years  x 100 • after twenty years  x 10000

18. Track Movement Flows

19. 40 Billion RFID Tags Worldwide

20. Instrumenting Cities – New York

21. Distribution • Distribution is now distributed • Distribution has become social

22. Social comments create distribution

23. … personalizes any page

24. Consumption • Attention • Cognition • Behavior change

25. Pay-as-you-drive car insurance (GPS)

26. Monitors your excercise and sleep

27. Fundamental Shift in Communication

28. private public

29. Web 0 Computers Web 0 Computers Web 1Pages Web 2People E-business CONSUME Me-biz CREATE We-biz SHARE

30. Imagine... • You knew all the things people here have bought • You knew all of their friends • You knew their secret desires ... what would you do?

31. How do you know peoples’ secret desires?

32. Audience

33. Goal: Help customers make decisions… …based on reviews

34. Customers who boughtthis item also bought…

35. Customers who viewedthis item also viewed…

36. Customers who viewedthis item ultimately bought…

37. Goal: Help customers make decisions… … based on clicks and purchases

38. Combine implicitand explicitdata

39. Sources of Data • Attention • Clicks, Transactions • Situation • Geo-location • Device • Intention • Search • Connection • Social graph • User generated • Reviews

40. Case study: What data fortargeting of a new phone product? • Traditional segmentation • Demographics • Loyalty • Connection data • Who called who?

41. 1.35% Adoptionrate 4.8x 0.28% • Traditionalsegmentation • Connection data

42. Company Customers

43. Audience

44. Amazon.com Share the Love

45. Result:Amazingconversion rates since customer chooses Content (the item) Context (she just bought that item) Connection(she asked Amazon to email her friend) Conversation(information as excuse for communication)

46. Purpose of communication:to transmit information? Or is information justan excuse for communication?

48. Helping people make better decisions together

49. Co-design, co-create, co-market

50. Social graph targeting Provide list of prospects