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Published: January 24, 2024
Updated: January 29, 2024
Small businesses can learn the key characteristics of big data and why it may increasingly play a crucial role in developing a best-in-class digital marketing strategy.
If you’re a small business owner or a professional managing your company’s digital marketing strategy, you're likely aware of the impact big data can have. According to October 2022 data from Statista, the value of the worldwide big data analytics market is expected to exceed $655 billion by 2029, up from about $241 billion in 2021. Although this growth highlights the expanding role of big data across various sectors, the effect on digital marketing is notable. The social media analytics market alone – a main component of many digital marketing strategies – is projected to grow from $7 billion in 2021 to over $26 billion in 2028, according to additional January 2023 data from Statista.
The profound influence of big data is largely due to its key characteristics, the four V’s: volume, velocity, variety, and veracity. Here’s a look at how the four V’s of big data may lead to more accurate data analyses and how these analyses can inform a more effective digital marketing strategy – now and in the future.
Big data refers to the large volume of data – both structured and unstructured – that inundates a business on a day-to-day basis. It’s too complex to be parsed with traditional tools like spreadsheets and manual data analysis and is typically characterized by four core concepts: volume, velocity, variety, and veracity.
The chief characteristic of big data is simply how much of it there is. Big data can be culled from various sources, including:
Big data statistics can be delivered much faster than conventional data thanks to the advent of emerging tech trends, such as:
Big data comes in a variety of formats, including:
This refers to the accuracy and trustworthiness of big data thanks to:
Big data can play many roles in digital marketing. Among the most prevalent are:
Big data is a cornerstone of data-driven decision-making in digital marketing. By leveraging insights from big data, companies can create more effective and targeted marketing strategies.
Here are a few areas where big data can strongly benefit digital marketing efforts:
If you’re looking at ways to make big data work for your business, you may want to consider as many data sources as possible. Online sources, like website traffic analytics and social media interactions, can be valuable, but there are also other sources. Resources such as in-store kiosks, smart POS systems, and inventory management systems can be invaluable for gathering data on customer behavior, preferences, and buying patterns. These tools not only provide insights into customer interactions and spending habits, but can also offer critical information on stock levels, product demand, and supply chain efficiency.
Encompassing both online and physical data, this comprehensive view of business data can be key to crafting well-informed marketing strategies, from product promotions to posting product availability alerts and everything in-between.
That said, it can be vital to make sure your data is sourced from reputable and reliable channels. Accuracy and trustworthiness can directly impact the effectiveness of your digital marketing strategies. For instance, verified customer feedback can help guarantee the strategies built on this data are based on actual customer interactions and behaviors, not on erroneous or misleading information.
Big data’s role in digital marketing is still growing. But integrating big data with real-world analytics can present challenges such as the complexity of data integration from diverse sources, the need for advanced analytics skills, and the requirement for robust data management systems. These hurdles can be daunting barriers to entry, especially for smaller businesses. Fortunately, there are accessible cloud-based tools that make big data analytics possible even for companies without the capital for major upfront infrastructure investments and data management systems.
Meanwhile, advancements in IoT, mobile technology, and AI assistants are increasing the speed and accuracy at which data is collected, which can lead to more precise digital marketing strategies. Companies that leverage such data, for instance, could potentially create better retargeting campaigns, craft more relevant product suggestions, and deliver advertising content that resonates deeper than ever before.
Despite these advancements, consumers are becoming more aware of – and concerned about – how their data is used and protected, making transparency and respect for privacy essential in maintaining trust and your brand reputation. As big data continues to evolve, companies can navigate these privacy concerns carefully to build and maintain customer trust.
"Big data" can be more than just a buzzword. For many businesses, it’s becoming a pivotal element in crafting a successful digital marketing strategy. From providing deep insights into customer behavior to enhancing targeted marketing efforts, big data can empower businesses to make informed, data-driven decisions. While addressing challenges such as data integration complexity and privacy concerns, you can discover the substantial advantages of incorporating big data science in digital marketing. Businesses that effectively harness the power of big data may see improved customer engagement, increased profitability, and a competitive edge in their market, among other benefits.
A version of this article was originally published on August 11, 2020.
Photo: Getty Images
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Benefits of Big Data in Creating a Digital Marketing Strategy – American Express
