Is Data All That We Need?

Over the last few weeks, I have put up a few posts regarding some of the strengths of Big Data that were articulated in Seth Stephens-Davidowtiz’s fascinating book, EVERYBODY LIES (Harper-Collins Books, 2017). The two posts generated tremendous response from readers to my personal e-mail and I was pleased to hear from several readers who had purchased and read the book. One person wrote to me with a provocative question that generated this post. He asked, “With Big Data getting so advanced and so quickly, is there any more need for advertising or for media or marketing analysts anymore?”

Well. That is quite a question. Let me attempt to do it some justice.

There can be no question that the quantity and quality of information available to marketers is the best ever. And, it will continue to improve going forward. Marketers who can observe how often an individual visits their sites, how much time and money they spend and what appears to be the price point that will encourage a visitor to pull the trigger and purchase have to be in an enviable position going forward. But, as Peggy Lee once famously sang, “Is that all there is” to 21st marketing and promotion?

A few things seem to be missing here. Over the years I have seen all kinds of business analysts—marketing, media, financial, currency, precious metals, energy, and real estate. The good ones certainly did like good and plentiful data. And, importantly, they were able to interpret it pretty well. Other characteristics certainly entered the mix. The first one to me was curiosity. People who are curious tend not to make for superficial analysis. They dig for details and seem to enjoy what they are doing. The best employees and students that I have enjoyed being around are not those with a natural aptitude necessarily. It is those who are on fire with the topic and never stop wanting to learn and understand more. People who perpetually ask “why” often make the best analysts.

The next issue is harder to pinpoint and it is creativity. Can someone be a creative coupon or natural gas analyst? Absolutely! I have seen it. So, as Big Data grows the batting average for promotions and finding the optimal pricing of an item will likely get better—sometimes much better. Yet, laying creativity and curiosity on top of the real world data could likely turbo-charge marketing return on investment.

For years, if you have wadded through the hundreds of MR posts (thank you!) you will notice that a theme that I have returned to several times is that entrenched companies will increasingly have a huge advantage over new enterprises when it comes to introducing a product. Colgate can simply do a line extension into oral care and get distribution, consumer acceptance and market share often without an enormous dollar commitment to marketing. Don’s toothpaste, made in a tiny lab, will face a much more precarious road to success and will likely disappear or, if the firm is lucky, can be bought out by a giant.

So, Big Data can be helpful. Yet, how do reach the people not buying from your site currently or from Amazon? Word of mouth can only carry you so far.

My conclusion, then, is that we need more than just data. The Big Data information is accurate and marketing gold, for sure. Even as conventional advertising is cut back in the years to come, savvy analysts will still be needed to make clever judgements to maximize results.

If you would like to contact Don Cole directly, you may reach him at doncolemedia@gmail.com or leave a comment on the blog.