LECTURE 13. BIG DATA AND THE FUTURE OF ADVERTISING AEM 4550: Economics of Advertising Prof. Jura Liaukonyte

What is BIG DATA?  Collection of data sets so large and complex that it becomes difficult to process using on-hand database management tools or traditional data processing applications.  Data sets grow in size in part because they are increasingly being gathered by ubiquitous information-sensing mobile devices, aerial sensory technologies, software logs, cameras, microphones, etc.  The volume of business data worldwide, across all companies, doubles every 1.2 years, according to some estimates

What is BIG DATA?  Data companies are collecting enormous amounts of information about consumers.  They sell information about certain demographic factors:  whether you're pregnant or  divorced or  trying to lose weight,  about how rich you are and  what kinds of cars you have  Are you an allergy sufferer?

Regulation  9 Data brokers are currently under review by the FTC. (1) Acxiom, 2) Corelogic, 3) Datalogix, 4) eBureau, 5) ID Analytics, 6) Intelius, 7) Peekyou, 8) Rapleaf, and 9) Recorded Future.)  The FTC is seeking details about:  the nature and sources of the consumer information the data brokers collect;  how they use, maintain, and disseminate the information; and  the extent to which the data brokers allow consumers to access and correct their information or to opt out of having their personal information sold.

How much do these companies know about individual people? names, addresses and contact information, demographics, like age, race, occupation and education level Data on life event triggers: getting married, buying a home, sending a kid to college getting divorced.

How much do these companies know about individual people? Marketing divisions of Credit report agencies (Experian, Equifax) can and do sell: names of expectant parents and families with newborns marketing.html marketing.html Salary and pay-stub information

Where are they getting this info from?  The stores where you shop sell it to these data brokers.  Store loyalty cards is a primary source of data  Government records and other publicly available information  Department of Motor Vehicles may sell personal information such as name, address, and the type of vehicles you own — to data brokers  Public voting records, which include information about your party registration and how often you vote can be sold to data companies

What about Online?  Some data companies companies record and then resell screen names, web site addresses, interests, hometown and professional history, and how many friends or followers you have.  Some companies also collect and analyze information about users’ tweets, posts, comments, likes, shares, and recommendations.  Collects information about which social media sites individual people use, and whether they are a heavy or a light user.

Required “reading” for the exam!   Note:  What are the most current trends in advertising buying?  What are the implications of such changing conditions for consumers, advertisers and content providers