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Module 8:

The Future of Data Analytics


By Kevin Hartman
The Future Of
Data Analytics
What we will discuss

• The Promise of Technology

• Technology’s Dark Side (Part 1)

• Technology’s Dark Side (Part 2)

• Implications for Analysts


Lesson 1: The Promise of Technology
Several trends demonstrate the future for marketing technology
and the capabilities open to marketers
Five things discussed in this lesson:

• Today’s power to process data is mind boggling and growing exponentially

• We are gaining great insight into consumers by collecting “micro-decision”


data

• Better data and more technology makes it easier to truly understand


consumers

• By observing massive amounts of human behavior data, machine learning


can find patterns perviously unseen

• Google and others focused now on building machine-learning algorithm that


learns to build other machine-learning algorithms.
Today’s Power

1
To Process Data
Is Mind Boggling
And Growing
Exponentially

Source: Google
Data Processing
Power
The Martech Arms
Race
Google data centers process an average
of 40 million searches per second,
resulting in 3.5 billion searches per day
and 1.2 trillion searches per year, Internet
Live Stats reports. That’s up from ~800
million searches a day in 1999, one year
after Google was launched.

Source: Google
2
We Are Gaining
Great Insight Into
Consumers By
Collecting “Micro-
Decision” Data

Source: Google
Turning Data Into
Understanding
Insight Into Our
Everyday Lives Comes
From Devices We Use
Insight into consumers everyday lives is
earned through the data collection that is
happening all around us, sitting typically
unnoticed in the background.

The phones, home devices, and IoT


connection points in our lives draw
immense amounts of minute data about
the things we want, do, and enjoy.

Source: Google, Apple, Amazon


Source: Google Map
Biometrics DNA Measures Functional MRI (fMRI)

Electroencephalography Facial Coding (FACS)


(EEG) © 2010 John Graner / Public Domain / Wikimedia: FMRI scan during working memory tasks

© 2015 NEC Corpora<on of America /CC BY 2.0 / Flickr: Solu<ons for Society Biometrics © 2012 Tim Sheerman-Chase / CC BY 2.0 / Flickr: EEG brain scan
© 2008 Micah Baldwin / CC BY-SA 2.0 / Flickr: Micah’s DNA Pikrepo.com / Public Domain / Pikrepo: Facial Recogni<on Concept - Facial structure algorithm
3
Better Data And
More Technology
Makes It Easier To
Truly Understand
Consumers
Machine
Learning: Truth In
Data
Unseen patterns (and
truths) can emerge
through analysis
By observing massive amounts of
human behavior data, machine
learning can find patterns perviously
unseen. The process of learning
begins with observations or data,
such as examples, direct experience,
or instruction, in order to look for
patterns in data and make better
decisions in the future based on the
examples that we provide. 

Source: Expert System


Artifical Intelligence

Source: Fortune
Artifical Intelligence

Machine Learning

Source: Fortune
Artifical Intelligence

Machine Learning

Deep Learning

Source: Fortune
A.I. That Can Build A.I.
Google and others looking for ways to deal with
a shortage of artificial intelligence experts

With recent speeches in both Silicon Valley and China, Jeff


Dean, one of Google’s leading engineers, spotlighted a
Google project called AutoML.

Source: The New York Times


Reference List

• Baldwin, M. (2008). Micah’s DNA [Online image]. Retrieved from https://


www.flickr.com/photos/micahb37/3080247531

• Data Center Knowledge (2017, March 17). Google Data Center FAQ.
DataCenterKnowledge. Retrieved from https://www.datacenterknowledge.com/
archives/2017/03/16/google-data-center-faq

• Expert System. (2017, March 7). What is machine learning? A definition. Expert
System. Retrieved from https://expertsystem.com/machine-learning-definition/

• Graner, J. (2010). fMRI scan during working memory tasks [Online image].
Retrieved from https://commons.wikimedia.org/wiki/
File:FMRI_scan_during_working_memory_tasks.jpg
Reference List (Continued)

• Metz, C. (2017, November 5). Building an A.I. that can build


A.I. New York Times. Retrieved from https://
www.nytimes.com/2017/11/05/technology/machine-
learning-artificial-intelligence-ai.html?_r=0
• NEC Corporation of America. (2015). Solutions for society
biometrics [Online image]. Retrieved from https://
www.flickr.com/photos/neccorp/16250748818
• Parloff, R. (2016, September 28). From 2016: Why deep
learning is suddenly changing your life. Fortune. Retrieved
Lesson 2: Technology’s Dark Side (Part 1)
The path forward to the future of analytics is fraught with
deception and things that go bump in the marketer’s night
Five things discussed in this lesson:

• The dark side of technology features many challenges to analysts, advertisers,


and citizens in general

• Bots can be used to artificially increase social media followers and networks
for online personalities

• Traffic bots can be used to artificially produce clicks on links, video views, etc.

• Fake news is bad for politics and business alike

• Thwarting bad actors in the digital space is a complicated, difficult endeavor


Traffic
Brand
Bots
Faux
Safety Video

Pop-
ups /
unders
Domain
Spoofing
Zombie
Sites
Fake
News
Traffic
Brand
Bots
Faux
Safety Video

Pop-
ups /
unders
Domain
Spoofing
Zombie
Sites
Fake
News
The Sad Tale Of
Rita Ora’s
Followers
Ill-Advised Publicity
Stunt Backfired On
English Musician
Pop singer Rita Ora has 4.0 million
Twitter followers and on Halloween
2014, Ora tweeted that she
would release a new song next week if
her fans retweeted her 100,000 times
— a less than remarkable event for such
a large following of fans.

Source: Rita Ora and flutura


Source: Business Insider
Traffic
Brand
Bots
Faux
Safety Video

Pop-
ups /
unders
Domain
Spoofing
Zombie
Sites
Fake
News
Same Methods,
New Distribution
Technology’s Reach
Increases
Propaganda’s Impact
Earning Nearly One Million
Engagements On Facebook In The
Months Leading Up To The 2016 Us
Presidential Election, The Story Of
Pope Francis Offering A Papal
Endorsement Of Donald Trump Quickly
Made Waves Around The World.

Source: WTOE5 (2016)

Source: Business Insider


The Anatomy Of
Fake
Democratization Of
Fake News Inverts
The Model
Safeguards exist to protect against the
abuse of power by leaders, controls built as
the result of painful lessons learned
throughout history. Yet, how does one
protect against abuse from those who look
common?

A Facebook post, by someone claiming to


be Melvin Redick, promoting a website
linked to the Russian military intelligence
agency G.R.U. demonstrates that threat and
the new face of Fake News.

Source: “Melvin Redick”

Source: NYTimes
Fake News
Damages
The Economy,
Too
Trolls and profiteers
use dis- information
to affect markets
Work by the Washington Post uncovered
how the problem of digitally disseminated
disinformation is not limited to the political
sphere.

© 2006 Brian Katt / CC BY-SA 3.0 / Wikipedia: Purified tap water

Source: Washington Post


Digital Myth-
Busting
Scoring News Brings
Some Balance
Celebrity and gossip sites — where fake
news quickly (and often) takes root — have
begun instituting approaches to give
readers fair warning and label rumors apart
from facts including visuals and increased
source-checking. The rise of fake news has
also created a place for third-party
“watchdog” sites, such as GossipCop.com,
who have jumped into the fray.

While not eliminating the sources of fake


news, these measures can counteract some
of the damaging effects of mistruths spread
on the Internet.

Source: GossipCop / http://tinyurl.com/w8hc2y6


Reference List

• Ferraro, M., & Chipman, J. C. (2019, February 8). Fake news threatens our
businesses, not just our politics. Washington Post. Retrieved from https://
www.washingtonpost.com/outlook/fake-news-threatens-our-businesses-not-just-
our-politics/2019/02/08/f669b62c-2b1f-11e9-984d-9b8fba003e81_story.html

• Gossip Cop. (2017, December 27). Brad Pitt has “new face” from plastic surgery?
Gossip Cop. Retrieved from https://www.gossipcop.com/brad-pitt-new-face-
plastic-surgery/

• Roberts, H. (2016, November 17). This is what fake news actually looks like – We
ranked 11 election stories that went viral on Facebook. Business Insider. Retrieved
from https://www.businessinsider.com/fake-presidential-election-news-viral-
facebook-trump-clinton-2016-11
Reference List (Continued)

• Shane, S. (2017, September 7). The fake Americans Russia created to


influence the election. New York Times. Retrieved from https://
www.nytimes.com/2017/09/07/us/politics/russia-facebook-twitter-
election.html
• Twistedsifer. (2017). This is what a Chinese click farm looks like [Online
video]. Twistedsifer.com. Retrieved from https://twistedsifter.com/videos/
what-a-chinese-click-farm-looks-like/
• Weisman, A. (2014, November 3). Singer Rita Ora claims twitter was
‘hacked’ after failing to get fan response. Business Insider. Retrieved from
https://www.businessinsider.com/rita-ora-twitter-hacked-after-no-fan-
response-2014-11
Lesson 3: Technology’s Dark Side (Part 2)
The path forward to the future of analytics is fraught with
deception and things that go bump in the marketer’s night
Five things discussed in this lesson:

• Fraud in digital advertising — like Zombie Sites — are an extremely costly risk
that is growing in sophistication

• Ad fraud is expected to rise 214% between 2017 and 2022, seriously


impacting the flow of money that makes the internet go

• The story of 301Network provides a cautionary tale for digital advertisers

• Large, sophisticated brands with scores of equally sophisticated partners


have been duped by ad fraud

• Advertisers are fighting back, but too many remain unprepared


Traffic
Brand
Bots
Faux
Safety Video

Pop-
ups /
unders
Domain
Spoofing
Zombie
Sites
Fake
News

We have stopped the dumb
criminals. Now we need to
be able to stop the smart
criminals.

Mike Zaneis
—CEO of Trustworthy Accountability Group
Digital Ad Fraud

!
Ad fraud accounted for over
$14 billion in lost revenue in
2017, but by 2022 that total
is expected to rise 214%, 2022 estimate
seriously impacting the flow

$44.0B
of money that makes the
internet go

2017
$14.2B

Source: Juniper Research


How A Digital Ad Exchange Works
Data, ads, and money change hands in milliseconds as digital ad exchanges automate the process
of getting the right ad to the right person at the right time

Consumer visits Website has ad space Website exchanges Advertisers place bids
website (“inventory”) available data with ad exchange / through their Demand-side
and looks to fill with Supply-side Platform (SSP) Platforms (DSP)
ads from brands

Source: Mediative
Source: 301 Network
Hiding In Plain
View
“Zombie Sites” Avoid
Detection By
Appearing Legit At First
Glance
The websites in the scheme focus on niche
topics popular with advertisers. In many cases
the sites are filled with images and content
plagiarized or loosely rewritten from other
websites.

Source: Buzzfeed
How 301Network Defrauded Brands
Approximately $20 million in real digital ads were served to fake visitors on fake sites
orchestrated by 301network’s fraudulent scheme

Bots — not humans — 301network’s sites Unaware of the scheme, Unsuspecting advertisers
were used to simulate made calls to exchanges ad exchanges placed bids as usual
visitors to fake sites by for ads, often on a represented the sites’
301network never-ending loop traffic as real to its
advertisers

Source: Social Puncher


100+ Affected Brands

Source: Social Puncher


Advertiser Response
53%
Given the heightened 48%
fraud risk in programmatic,
Forrester asked 250
marketing leaders how
they’re fighting back
(many of their responses
are applicable
across all formats and 32% 48%
25%
channels)
25%
25% 32%
6% 28% 31%

Source: Forrester and AppsFlyer


Reference List

• Silverman, C. (2017, October 17). Ad industry insiders profited from an ad fraud


scheme that researchers say stole millions of dollars. Buzzfeednews. Retrieved
from https://www.buzzfeednews.com/article/craigsilverman/ad-industry-insiders-
are-connected-to-a-fraud-scheme-that#.jlqVBoVxd
Lesson 4: Implications for Analysts
From facial recognition to device tracking, each evolution of
technology comes at the price of reduced privacy
Five things discussed in this lesson:

• Consumers have become aware of location tracking, but data collected at the
app, browser, and device levels make it difficult to avoid
• Data hacks have raised consumer awareness to the danger of insidious
actors on the web to new heights
• However, the pace of technology continues to grow globally, like in China
where customers can pay for KFC using only their face
• A recent decision by the Supreme Court protects consumers from the use of
cell phone locations and recent moves indicate that digital platforms will be
held responsible for data security and consumer privacy
• It’s a wild and wonderful time to be working in digital marketing and we’ll here
from an industry expert on what the next five years may bring
D’you Know
Where I Am?
Google Collects
Android Users’
Locations Even When
Location Services Are
Disabled
Many people realize that smartphones track
their locations. But what if you actively turn
off location services, haven’t used any
apps, and haven’t even inserted a carrier
SIM card?

Source: New
Quartz
York Times
Hacks Threaten
To Collect Pii
Held Online
DAtabase Of
Facebook Users’
Phone Numbers
Found Online
Hundreds of millions of phone numbers
linked to Facebook  accounts were
discovered online in September 2019.

Source: Techcrunch
Tastes Like
(Facial
Recognition
Software)
Chinese Customers
Can Pay For Kfc
Using Only Their Face
KFC and Alipay - the financial partner of the
online marketplace, Alibaba - have begun
trialling technology that allows customers to
pay for fast food using facial recognition.
This is the first time that consumers have
been able to use the technology to pay for
goods.

Image source: Hikvision

Source: BBC
Location Tracking:
The Good Among
The Ugly
Police Have Used
Cellphone Locations
To Catch Criminals
The U.S. Supreme Court confronted the digital
age in late 2017 when it heard arguments in a
case with major repercussions for law
enforcement and personal privacy.

Source: NPR
Ftc Hits Back At
Online Platforms
Google’S Youtube
FIned $170M For
VIolating CHildren’s
PRivacy
FTC regulators fined YouTube for knowingly
and illegally harvesting personal information
from children and using it to profit by
targeting them with ads.

Source: New York Times


“Digital marketing in 5 years”
Steve Moffat, Chief Marketing Officer - Guaranteed Rate
Reference List

• BBC. (2017, September 4). Pay for Chinese fried chicken with your face. BBC.
Retrieved from https://www.bbc.co.uk/programmes/p05f3lkv

• Harris, R., Keller, M. H., & Valentino-DeVries, J. (2018, December 15). 8 places
where smartphones tracked people’s movements. New York Times. Retrieved from
https://www.nytimes.com/2018/12/15/business/location-tracking-phones.html?
emc=edit_nn_20181216&nl=morning-
briefing&nlid=5248046320181216&te=1&login=smartlock&auth=login-smartlock

• Liptak, A. (2017, November 27). How a radio shack robbery could spur a new era
in digital privacy. New York Times. Retrieved from https://www.nytimes.com/
2017/11/27/us/politics/supreme-court-fourth-amendment-privacy-cellphones.html
Reference List (Continued)

• Singer, N., & Conger, K. (2019, September 4). Google is fined &170 million for violating children’s
privacy on YouTube. New York Times. Retrieved from https://www.nytimes.com/2019/09/04/
technology/google-youtube-fine-ftc.html

• Totenberg, N. (2017, November 28). Can police track you through your cellphone without a
warrant? NPR. Retrieved from https://www.npr.org/2017/11/28/564713772/can-police-track-
you-through-your-cellphone-without-a-warrant

• Valentino-DeVries, J., Singer, N., Keller, M. H. & Krolik, A. (2018, December 10). Your apps know
where you were last night, and they’re not keeping it secret. New York Times. Retrieved from
https://www.nytimes.com/interactive/2018/12/10/business/location-data-privacy-apps.html?
emc=edit_nn_20181216&nl=morning-briefing&nlid=5248046320181216&te=1

• Valentino-DeVries, J. & Singer, N. (2018, December 10). How to stop apps from tracking your
location. New York Times. Retrieved from https://www.nytimes.com/2018/12/10/technology/
prevent-location-data-sharing.html?emc=edit_nn_20181216&nl=morning-
briefing&nlid=5248046320181216&te=1

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