THE FOUNDATION OF

MARKETING ANALYTICS
Anggota:
Elmira Listiawardany (2206007581)
Bella Amanda Jati (2206111732)
 LESSON 1
DIGITAL DATA INFRASTRUCTURE
CATEGORIES OF DATA
There are three categories of data that are typically used by brands to learn more about their consumers who
purchase or do not purchase their products

The vast amount of available date makes Data Management Platform (DMP) valuable because it can help brands
use data to target specific consumer audiences and can measure campaign performance

Picture source: wordstream.com

DIGITAL DATA COLLECTION
Brands collect consumers’ digital information through these three important tools

Digital Cookies

Text files that sit in

an internet
browser’s cache on
devices that allows
websites and servers
to identify the
consumers through
cookie ID

Source: Pixel Privacy

DIGITAL DATA COLLECTION
Brands collect consumers’ digital information through these three important tools

Tags

Strings of code that

initialize when
someone performs
an action in a
browser. Tags allows
analytics tools or
marketing partners
to collect data
related to consumer
behavior

Source: signal.co
DIGITAL DATA COLLECTION
Brands collect consumers’ digital information through these three important tools

Sign-Ins

Create accounts and

sign-ins are
commonly used to
collect data. Sign-ins
are usually required
and used to control
access to
subscriber-only
information,
financial
information, or
personal data
Source: signal.co
DATA AVAILABILITY AND VALUE
Eric Peterson in his book “Web Analytics Demystified” introduced “Pyramid Model of Web Analytics Data”. He
believes there are relationship between the volume of available data and its value.
DATA COLLECTION AND PRIVACY CONCERNS
● To protect users’ privacy data, several
regulations are made such as: advertisers require
to clearly identify each party that my collect,
receive, or use data from their sites, apps, and
other properties. Advertisers also must obtain
consent from users.
● Web browser are adding features to limit digital
cookie and tag use, including those used for
personalization and measurement.
● Users should know and control who is collecting
their data, how the data is being used, and have
the opportunity to opt out.

Because of such regulatories, the availability and

accuracy of collected data have been reduced. But
analysts still can make informed decisions based on
available data.
 LESSON 2
DIGITAL MEASUREMENT
IMPORTANCE OF MEASUREMENT

Why is measurement important to the brand despite the challenges in digital environment?

● Establishes the source of truth

Ensure stakeholder trust in data reliability across data sources to measure what matters by
defining clear customer value and key performance indicators.

● Allows for insight discovery

Understand consumer behavior and the effect of marketing efforts in the context of the
customer journey

● Enables the activation of insights

Allocate scarce marketing resources optimally across channels, initiatives, and partners.
FOUR CATEGORIES OF DIGITAL MEASUREMENT
Making the intangible tangible: BRAND IMPACT. What approaches are suitable to measure
brand impact?
1. Assessing attributes: assigns values to attributes, such as satisfaction, loyalty, awareness, and
market share.

2. Brand Equity: combines three elements: effective market share, relative price, and durability

3. Brand Valuation: seek to take the most robust financial data available to model a plausible valuation
of a brand

4. Algorithmic: uses an advertiser’s financial data, market dynamics, and assessment of the brand’s role
in income generation to forecast brand value

5. Royalty Relief: calculates the net present value of the hypothetical royalty payments an organization
would receive if it were to license its brand to a third party

6. Net Promoter Score: asks customers and scores their responses on a scale from zero (0) to ten (10)
FOUR CATEGORIES OF DIGITAL MEASUREMENT
Measuring sales levers: CONSUMER OUTCOMES.
Consumer outcomes should be measured from presale steps called microconversion to final steps called
macroconversion. Microconversion outcomes occur in online and offline consumer behavior

Activities that could qualify as examples of microconversion both online and offline:
1. Offline microconversion
● Store visit
2. Online microconversion
● Viewing a page
● Watching a video
● Commenting on a post
● Sharing a post through social media
● Creating an account
● Signing up for an email newsletter
● Downloading an app
● Placing an item in an online shopping cart
FOUR CATEGORIES OF DIGITAL MEASUREMENT
Understanding what is important: CUSTOMER VALUE.

Understanding what valuable customers look like can help advertisers to affix differing levels of value to
nearly every consumers. Advertisers can build best customer profiles based on analyses of demographics,
psychographic, and behavioral data. Identifying customers who demonstrate similar attributes, through
look-alike analysis, can reveal new high-value targeting opportunities

Assessing Marketing Effectiveness: Attribution

Existing studies do not address an advertiser’s complete marketing investment, which can be spread across a
number of campaigns and platforms. No single digital solution measures the full journey a consumer will take
to evaluate brands and make an ultimate purchase. Facebook cannot measure their consumers while
browsing Google or watching videos on Youtube. Thus several solutions are provided, such as multitouch
attribution and marketing mix modeling.
MULTITOUCH ATTRIBUTION (MTA)
MTAs measure the relative benefit of specific digital media to influence consumers. It combines deterministic
and probabilistic models to form the inner workings of any MTA solution. Each attribution solution faces
challenges in today’s measurement environment.
MARKETING MIX MODELING (MMM)
MMM is a time-tested method for measuring the effect of marketing and media investments, to determine
what’s working across different channels. There are five steps to more actionable MMM digital reads
INCREMENTALITY TESTING
Incrementality testing is done using traditional test and control designs and demonstrates benefits by
comparing observed results to those one would expect if the stimuli being tested hadn’t happened.
Incrementality testing fall into two categories: observational and experimental

Observational
Begin with an existing set of data that resulted from exposing people to a certain ad or ad
variable, and then apply a model or statistics how much value a treatment may have had.

Experimental
Begin by developing a hypothesis about the effect a change in strategy will have. Next, designate a
group of people who will be exposed to the treatment, and a control group that won’t
AKOBENG’S HIERARCHY OF EVIDENCE
Randomized Controlled Trial (RCT) is a type of study in which participants are randomly assigned to one or two
groups (treatment and controlled groups).

Source: appsflyer.com
Combination of measurement tools
clarify a brand’s performance and
market environment

MEASUREMENT
MULTIPLICITY
Cross-checking brand impact and customer
lifetime value can be measured with single
media channel attribution or supplementing
quarterly MMM reports with incrementality
tests run as campaign launch

Source: appsflyer.com
 LESSON 3
ANALYTICS & DATAVIZ TOOLS
 INTRODUCTION
Todays market of digital
analysis tools is expanding
quickly and changing
Tools play an constantly
important part in
the analyst’s work

Tools help analyst to

collect data, cleanse
errors in data, and
conduct sophisticated The analyst is enabled
analysis by the tools they use
 Key Categories of Digital Analysis Tools
Tools that connect to various
social media networks to
extract consumer data
—SOCIAL LISTENING
Tools that provide information
about visitors to a website,
including the number of visitors
and how they behave on the site
—WEBSITE ANALYTICS
Tools that help analysts use
collected data in meaningful ways
by studying digital text, photos,
audio and visual formats of
communication
—CONTENT ANALYSIS
A/B testing measures the
effectiveness of ads, website design,
and other forms of digital content by
comparing two versions of the item
being tested
—A/B TESTING
Internet search trend data
reveals the issues that are on
consumers’ minds
—SEARCH TRENDS
Creative optimization seeks to
maximize an advertisement’s effect
by using analysis to determine the
most effective use of the ad’s
various elements
—CREATIVE OPTIMIZATION
 SOCIAL LISTENING
COMMERCIAL TOOLS
Brandwatch, Sysomos, Hootsuite
(connect to multiple platforms)

FREE TOOLS
TweetReach (limited for Twitter),
SocialMention (collect information
about a brand,), Tools provided by
social media networks (e.g.
Facebook’s analysis tools)

These tools provide direct access to content consumers create and allow marketers to learn about
interests, actions (e.g., likes, favorites, etc.), and thoughts in consumers’ words.
 CONTENT ANALYSIS
COMMERCIAL TOOLS
Linguistic Inquiry and Word Count
(LIWC) (interpret text into thoughts,
attitudes, feelings, personality, &
motivations), BuzzSumo (provides
insights into the types of content that
resonate with specific audience groups)

FREE TOOLS
R package ‘Quanteda’ (quantitative
text analysis: analyze keywords,
represent text visually, sentiment
analysis, etc)

These tools can reveal otherwise unrecognizable patterns in data. Term ‘relevance’ and ‘consumer
sentiment’ are two of the more popular and useful types of content analysis.
 SEARCH TRENDS

COMMERCIAL TOOLS
Moz (analyze search volume, report
metrics and suggest actions)

FREE TOOLS
Google Trends, Bing, Yahoo,
Searchvolume.io (index search volume,
SOS)

Search analysis tools aggregate and visualize that data to show analysts the popularity of specific topics,
which can offer insights on demand for new products, consumer response to marketing campaigns, and
brand awareness.
 WEBSITE ANALYTICS
THE TERMS
Clickstream analysis (tracking how
visitors interact with the site) and
Metrics (includes “visits”, “unique page
views”, and “bounce rate”) offer
valuable insights

COMMERCIAL TOOLS
Adobe Analytics and Google Analytics
360

FREE TOOLS
Google’s free version of Google
Analytics

These tools let the analyst gauge traffic and the popularity of content on the site, which is
useful for market research.
 A/B TESTING

COMMERCIAL TOOLS
Optimizely, Visual Website Optimizer,
Evergage

FREE TOOLS
Google Optimize

A/B testing helps the analyst determine which version is more effective overall and for specific
consumer segments. A/B testing also known as Conversion Rate Optimization (CRO)
 CREATIVE OPTIMIZATION
A/B TESTING RETENTION CURVES
A/B testing optimizes some basic Retention curves visualize the percent of
elements of an ad, such as color or viewers exposed to an ad who are still
even casting. engaged at each subsequent. Analyzing
retention curves by consumer segments can
reveal how elements of the ad appeal to each
important source of inputs to machine
segment.
MACHINE LEARNING
Studies conducted in lab settings that
collect dense consumer neurological
response data, such as eye
movements and brain activity, are an
learning algorithms.

Creative optimization objective particularly effective in optimizing digital video ads through analysis on
various elements includes tone, the use of color, the use of objects, casting, music, and many others
Evaluation Criteria 1: Data Flexibility

Three distinct categories of tools emerge:

Enterprise Big, powerful solutions that handle lots and lots of data and are
Platforms packed with capabilities

Typically center on one primary capability, where they go very

Point Solutions deep

Offer a single, well-defined capability and sit on the low-data

Analysis Gadgets flexibility side of the scale
Enterprise Platforms (High Data Flexibility)

These tools come from some of the most

well-known names in marketing analytics.

COMMERCIAL TOOLS FREE TOOLS

These tools give analysts as many capabilities Unlike the premium solutions, these free tools
as they could possibly want. The downside to lack the slickly packaged and fully integrated
enterprise platforms is their large price tags. feel of premium solutions.

● R
● comScore
● Phyton
● Adobe
● IBM
● Google
Point Solutions (Medium Data Flexibility)
Point solutions offer more affordable, but less
robust, solutions to analytics problems. It is
best used if analysts have a single objective
or challenge to crack.

THE TOOLS
Their scope is limited to digital surveys, but
they do that job exceptionally well with a
deep set of capabilities.

● iPerceptions
● SurveyMonkey
● ForeSee Results
● Google’s Consumer Survey
Analysis Gadgets (Low Data Flexibility)
The characteristics of analysis gadgets is that
they’re extremely lightweight, and the
amount of data they can handle pales in
comparison to that absorbed by point
solutions and enterprise platforms.

THE TOOLS
These analysis gadgets are available online
and usually don’t need users to download
anything onto their desktops.

● Wordle (word cloud)

● Google Trends
● Bing
● Yahoo
Evaluation Criteria 2: Ease of Use
Four Quadrants
(Assesment of the data analysis and visualization tool market)
THE FOUR QUADRANTS
Tools to collect: have Your go-to tools:
limited capabilities powerful and
but are easy to use easy-to-use tools
UPPER LEFT UPPER RIGHT
QUADRANT QUADRANT

LOWER LEFT LOWER RIGHT

QUADRANT QUADRANT
Tools to avoid: hard to Your secret power tools:
use and doesn’t have have deep capabilities
strong capabilities and potential but need
more effort and practice
A WORD ON SQL

Structured query language (SQL) is a programming language designed

for managing data held in relational databases.

Today, it’s the most popular language the analyst can use to interact
with a relational database.

For the analyst, collecting and analyzing data at companies that have a
relationship database (including MySQL, a free and open-source RDBMS
designed by Oracle) requires some use of SQL.
A WORD ON R & PYTHON

While the analyst community agrees on the criticality of SQL, there is less
consensus on whether the analyst should complement SQL with R or
Python (or both).

R boasts a very large community. The learning curve, however, is steeper than many
languages (including Python), and it’s less efficient for general computations.

Python can be adapted more easily for programming tasks besides analyzing data.
However, it is less efficient for statistical computations, features less-appealing data
visualization, and comes with fewer add-on modules and packages.
 LESSON 4
DIGITAL MARKETING
MATURITY
 INTRODUCTION
The number of touch points
along the consumer journey
has increased exponentially
over the last decade
What separates some of
successful brand (e.g. Netflix)
from the laggards, is digital
marketing maturity

More data created more

need for sophisticated
analytics and
visualization tools Digital marketing maturity is a
quantified measure of an
advertiser’s sophistication
regarding digital data and its use
BCG’s View of Digital Marketing Maturity
BCG defined the four phases of digital maturity as:

Marketing campaigns are Data integrated and activated

executed, mainly using external across channels with demonstrated
data and direct buys, with link to ROI or sales proxies
limited link to sales
EMERGING MULTIMOMMENT

NASCENT Some use of owned data in CONNECTED Dynamic execution across multiple
automated buying with single channels optimized toward
channel optimization and testing individual customer business
outcomes and transactions
Bain’s View of Digital Marketing Maturity
Bain & Company’s view of digital marketing maturity centered firmly on measurement.
Deloitte and MIT SLoan’s View of
Digital Marketing Maturity

Their perspective was based on the idea that adapting to

increasingly digital market environments and taking advantage
of digital technologies to improve operations are important
goals for nearly every contemporary business.

Digitally maturing advertisers recognize the

differences and are evolving how they learn and lead
to adapt and succeed in a rapidly changing market.
Benefits of Digital Marketing Maturity
Digital marketing maturity helps advertisers identify, acquire, and deepen relationships
with high-value customers by utilizing advanced technology and analytics.

Those that succeed are seeing significant benefits – reducing

BCG findings costs by up to 30 percent and increasing revenue by 20 percent

The 100 most measurement-mature advertisers were four

Bain findings times as likely to exceed business goals compared with the 100
least-mature advertisers

Highly mature advertisers are far more likely to develop the

Deloitte findings leaders they need for the future
 JURNAL
Effects of big data analytics and traditional marketing
analytics on new product success: A knowledge fusion
perspective

Oleh
Zhenning Xu, Gary L. Frankwick, Edward Ramirez
INTRODUCTION
TRADITIONAL MARKETING ANALYTICS AND BIG DATA ANALYTICS

Traditional Marketing Analytics (TMA) Big Data Analytics (BDA)

Relies on analytics dealing with small data sets Data sets that are so large (terabytes to
(kilobytes, megabytes, or gigabytes) exabytes), unstructured, and complex that
require advanced and unique technologies to
store, manage, analyze, and visualize

Follow the flow of information and analyze

massive volume of data in real time

Focuses on improving key performance BDA is used by organizations to understand their

indicator regarding advertising, pricing,
customer relationship management, and new
product development (NPD)
customers better and to achieve optimal
customer engagement
BDA differs from TMA in the four Vs of data:
volume, verocity, variety, and veracity

Recent changes in marketing and information technologies feature high magnitude, mobility, and
versatile solutions for strategic activities and new product success (NPS). This study is aimed to help
firms build strategy to combine knowledge from both marketing and big data domains.
THEORETICAL FOUNDATION
Marketing analytics, big data analytics, and NPD
● In web 3.0 era, BDA provides consumer, market, competitor and new product insights in real time which
differentiates BDA from the web 1.0 era and web 2.0 eras. Biased samples, and optimistic estimation of sales
existing in TMA, may result in biased information for NPD decision making.
● BDA's use of real-time data has the potential to improve decision making for business planning because of its
greater power in dealing with real-time uncertainties.
● BDA also helps product managers extract real-time information regarding people's sentiments regarding
product evaluations, recommendations, and product use for faster modifications to new products.
● From the consumer's perspective, the prevalence of social media transforms how people obtain information,
connect with others, endorse their favorite brands, and purchase product.
● Social data analysis grows out of these activities and combines disciplines such as social network analysis,
multimedia management, social media analytics, trend discovery, and opinion mining.
● In traditional marketing era, firms might focus on how advertising affects NPS, whereas in the social media
era, those firms can move forward to the frontier of peer effects because people are becoming more social
consumers in the sense that they follow their peers' purchasing behavior
THEORETICAL FOUNDATION
Knowledge Fusion Taxonomy
● This study proposes a knowledge fusion taxonomy of BDA and TMA employing both complexity theory and
knowledge-based view.
● Complexity comes into play when a phenomenon has interconnected elements that can interact in a variety of
ways so that the whole takes on a life of random movement or chaos, or little predictability, while evolving to a
state of order.
● In the big data era, knowledge evolves quickly due to the availability of data, the significant reduction of cost for
analytics, and the sharing open knowledge insights on the internet. Knowledge-based view suggest that firms
seek to accumulate, protect, or create new knowledge while complexity governs the process.
● With the power of synergistically combining expertise in both TMA and BDA, customized knowledge comes into
play when firms can create idiosyncratic value for their customers.
THEORY & PROPOSITIONS
KNOWLEDGE FUSION STRATEGIES

● This study introduces the term “knowledge fusion”

(Jeong, 2012) to represent the combination of
knowledge from both marketing and big data
domains.
● Because of the large amount of knowledge inside and
outside an organization, engineers fuse different
types, domains, features, and positions of knowledge
to represent heterogeneous knowledge expertise in
decision making (Jeong, 2012).
● Combining BDA and TMA, together with the degree of
complexity and knowledge types, produces four
strategic options appearing in Fig. 1.
● This classification of knowledge according to
characteristics of knowledge generation of
pre-Internet and post-Internet eras helps classify the
strategic choices for different firms.
THEORY & PROPOSITIONS

PIONEER EFFECTS

● The main argument of knowledge fusion is that collaborative knowledge exploration between applied
sciences and other social sciences can contribute to new ideas and innovation by combining IT expertise,
marketing analytics, and customer knowledge given today dynamic environment.
● Netflix case: Netflix moves from DVD rental to a web streaming media model by utilizing big data algorithm
of their user’s consuming habit while continuously still engages in TMA (e.g. pricing strategy). By
synergistically employing both BDA and TMA, Netflix selects movies, creates contents, builds
recommendation algorithms, and makes multimillion dollar new product decisions.
● Netflix makes a good case of why and how to achieve NPS by using both TMA and BDA.
● Theoretically, the knowledge-based view suggests that managers must choose valuable problems—those
which lead to valuable solutions, knowledge, and capability if managers analyze them successfully (Fidel et
al., 2015; Nickerson & Zenger, 2004).
● To implement this knowledge-based view in dynamic environments, new product managers must use
collaborative knowledge generation mechanisms of both TMA and BDA to quickly develop proactive
marketing strategy.
PROPOSITIONS 1

P1a. P1b.
Firms adopting both a high level of Firms adopting both a high level of
TMA and BDA have the highest TMA and BDA have the highest
levels of knowledge fusion. levels of NPS.
THEORY & PROPOSITIONS

EXPLORER AND PERFECTIONIST EFFECT

● The taxonomy defines the perfectionist as firms who rely heavily on TMA while ignoring
the revolution in BDA.
● Because of the underuse of real-time big data, TMA misses the uncertainty that
real-world events bring in social media, blogs, and smartphone apps, which may affect
knowledge accuracy and customization.
● Conversely, the explorer represents firms who employ BDA while underperforming TMA.
● The extreme usage of BDA features sophisticated algorithms increasingly common in
today's marketing as strong forecasting tools to generate automated knowledge and
improve NPS. However, the use of either method while ignoring the other limits
knowledge generation in either the short term or the long term.
PROPOSITIONS 2

P2a. P2b.
Firms adopting either TMA or BDA Firms adopting either TMA or BDA
have medium levels of knowledge have medium levels of NPS.
fusion.
THEORY & PROPOSITIONS

BYSTANDER EFFECTS

● Bystanders, as the matrix defines them, represent firms resistant to analytics.

● The complexity of decision making might be low for these firms.
● In practice, these firms rely on informal knowledge or managers' experience to make
decisions (Persson & Ryals, 2014).
● From this perspective, the degree of knowledge fusion is likely to be low because of the little
collaborative-knowledge exploration between applied science and other social sciences.
● Most importantly, a typical phenomenon is that knowledge from TMA, NPD practice, and BDA
may provide contradictory results.
● With the underuse of both TMA and BDA, low levels of NPS are likely to occur.
PROPOSITIONS 3

P3a. P3b.
Firms adopting low levels of both Firms adopting low levels of both
TDA and BDA have low levels of TDA and BDA have low levels of
knowledge fusion. NPS.
THEORY & PROPOSITIONS

KNOWLEDGE FUSION

● For firms adopting a pioneer position, the optimal strategy is to combine both BDA and TDA to
generate information and knowledge that are important for NPS.
● In particular, firms can eventually customize new product or service offerings for better NPS.
● Using BDA, Tuarob and Tucker (2015) demonstrate that for smartphones, firms can mine top
features such as waterproof, solar panel, hybrid, tooth pick, and ihome from social media so that
the next generation products includes these features, thus creating a buzz N design N new buzz
virtuous cycle of NPS by considering social media as a key strategic platform in NPD.
● Mestyán et al. (2013) found that the analysis and measurement of the activity level of editors and
viewers of the corresponding entry to a movie in Wikipedia can predict the popularity of that
movie much before its release.
● The ability to fuse the data from TMA and the many social media sites provides firms with a means
to make optimal strategic choices and improve NPS.
PROPOSITIONS 4

P4.
The degree of knowledge fusion
has a positive relationship with NPS
 The taxonomy suggests that all firms will benefit from use of both TMA and
BDA. However, perhaps not all situations justify the cost of collecting and
analyzing both types of data.

The study offers insight for managers to help determine when to use each or
both types of data.

In addition, the taxonomy and propositions provide a starting point for

researchers to investigate the value of each of the types of data analytics
relative to the other in terms of firms' strategic needs.

Future research should test the propositions to determine if firms actually fall
into each of the four cells in the taxonomy, and if a difference truly exists in
NPS for firms following the proposed strategies.

CONCLUSIONS
 TERIMA
KASIH
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 References
Hartman,.K. (2020), Digital Marketing Analytics: In Theory And In Practice (2nd edition), Ostmen Bennettsbridge
Publishing Services.

Xu Z, Frankwick GL, Ramirez E (2016) Effects of big data analytics and traditional marketing analytics on new
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