In 2006, Clive Humby coined the phrase “data is the new oil” and since then this has become the catchphrase amongst marketers for the past 14 years. However, what went predominantly unnoticed is the further elaboration he gave on this phrase.
Like oil, data is “valuable, but if unrefined it cannot really be used. Oil has to be changed into gas, plastic, chemicals, etc to create a valuable entity that drives profitable activity; so, data must be broken down and analyzed for it to have value”. Even as consumer information quickly becomes an indispensable resource for businesses to aid in capturing the attention of the elusive customer, personalization and targeted marketing has had a very bumpy ride for the past decade for three main reasons: volume, velocity, and verification.
The days of mass, untargeted broadcasting is slowly giving way to personalization.
By 2025, it was estimated by the International Data Corporation (IDC) that worldwide data creation would grow to an enormous 163 zettabytes (ZB) which is ten times the amount of data produced in 2017. Though its volume has increased by tenfold, the velocity of this data will grow from the current share of real-time data at a rate of 15 to 30 percent in the next five years.
As the amount of data that we continue to collectively create and share continues to grow, so will our reliance on its use, as a means to offer better services and product offerings. In turn, global revenues for Big Data and Business Analytics (BDA) solutions were forecasted to reach $189.1 billion in 2019. A new update to IDC’s Worldwide Semiannual Big Data and Analytics Spending Guide also showed that BDA revenues will maintain this pace of growth through to 2022 with a five-year compound annual growth rate of 13.2% – by then, IDC expects worldwide BDA revenue will be $274.3 billion.
Read More: Top Tips on How to Build Brand Loyalty by Being Data Transparent
At the same time, cognisant of this emphasis on data collection and data analysis, consumers are becoming more sensitive to how their data is being used, and governments have likewise taken an unequivocal stand in their expectations for digital privacy to be respected. Since the introduction of the European Union’s General Data Protection Regulation (GDPR) over a year ago, several countries around the world have followed suit, using GDPR as a frame of reference as they too begin to craft their own data protection policies.
In the next five years, it is expected that at least two-thirds of the world’s population will be governed by some form of privacy regulations, each varying in how ownership and data processing practices are defined and interpreted. As the global privacy compliance landscape continues to evolve, it is the verification of the data that is now at clear and present danger – both for the owner and for those who are refining it for value creation.
Privacy or Personalization?
The days of mass, untargeted broadcasting is slowly…