The biggest benefit of the proliferation of big data in advertising lies in accountability, says Dave Morgan, CEO and founder of Simulmedia, in an interview with Beet.TV at the 4A's conference in Los Angeles. Data can also help marketers to "unbundle" campaigns as they learn exactly which components are driving business objectives and which aren't, he says. Much like the music industry experienced the breakdown of albums with iTunes, the same might happen to marketing as brands gain more insight into precisely which components work best.
As the use of data becomes more prevalent, brands will also increasingly look to hire data scientists to help understand how to best use data. "Data is changing what you can outsource and can't and we are needing to hire more data scientists. They will play a more important role in the enterprise."
Also, data will spawn more addressable advertising. "Data-driven audience-based advertising will be the precursor to addressable," he says, adding that addressable advertising can improve the relevance overall for ads. The most likely next step in addressable ads will be in testing different creative for various products rather than changing the ad for each person, he says.
The addressable TV universe stretches across about 12 million homes and that number should hit 20 million in the next year, he adds. For more insight into addressable TV and data-driven ads, check out this video interview.
Disclaimer: Simulmedia sponsored Beet.TV coverage of the 4A's.
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