Sunday, May 27, 2007

Automated Marketing Intelligence

Some of the most successful and innovative companies embed analytical wisdom in real time marketing applications instead of relying onto back-end analysis. The last edition of Business 2.0 writes about a new company called Revcube (, that optimizes banner ads, emails, or text ads based on analyzing in real time over 5,000 attributes to deliver the most relevant Online Marketing experience to consumers. “ “If you analyze data once a month or even every week, you miss something”, says Revcube Bill Schaefer. “We analyze data every 30 second”…Because Revcube automates a process that typically involves a multitude of focus groups and mountains of spreadsheets, its system is seen as the future of Web marketing,” writes Susanne Hamner in Business 2.0.

Does this movement symbolize a dramatic change of where analysts will spend most of their value in the not so distant future? The answer is probably yes. A human being has little chance to compete with machine learning and highly automated algorithms of finding the best success and consumer response correlations of a given marketing challenge. I expect these highly sophisticated automated intelligence generating processes gaining more ground in at least these three important marketing channels:
  • Search Optimization Marketing: There is little use for human interference of finding the best search terms for a particular audience.
  • Direct Response Marketing like outbound email, Banner Ads: The key human value might be in designing the most efficient test matrix, everything else can be designed and driven by intelligent applications
  • TV Media Placement Decisions: Most placement decisions are still done by human beings, this will dramatically change due to the increasing complexity and increasing targeting capabilities of TV channels.
    One common thread amongst all these more marketing areas (that will rely more on automated intelligence) is the increasing importance of auction based platforms that support these marketing channels.

Human analysts are getting much more under pressure to provide higher level strategic value instead of doing the basic number crunching that was (and often still is) the center piece of Database Marketing and even Data Mining. Both disciplines need a serious redefinition and refocus.


Blogger Le_Plan said...

I have a related blog entry titled "Conversational Machines - is it possible" in my blog "Business Analytics". I have dedicated the entry to the Fair Isaac noobs doing the research on Conversational Machines.

I welcome all of you to my blog. Hope it adds a new dimension in the field of decision management and analytics.


8:13 AM  
Blogger Michael Fassnacht said...

I just looked at your blog, looks very interesting. I know Fair Isaac pretty well, you guys are doing some innovative things. Is there a more detailed White Paper about the "Conversational Machines" project?

6:41 PM  
Blogger New said...

Don't we risk then taking ourselves *agency folks* even farther out of the picture as marketing intelligence becomes more automated? Do you think that's what Google will end up doing - automating analytics next to advertising tools and media placement so that the traditional agency model becomes a vestigial holdover from another, slower, era?

8:24 AM  
Blogger Michael Fassnacht said...

Yes, I think the agency model needs to be dramatically changed. Basic analytics will be taken over by the Google's of the world. We will need to move up 2 or 3 levels on the strategic importance of our data intelligence work. Key parts of today's analytical solutions will be further and further commoditized. We will need to embrace it and find the right strategic value opportunities for analytics. And this will change the agency landscape, especially since Google has a truly scalable model, whereas most agencies don't.

9:51 AM  
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