Big data are datasets thats size exceeds the capabilities of typical database software tools that capture, store, manage and analyse data. With extremely vast quantities of data being generated every day (approximately 2, 500, 000 terabytes) that will only continue to grow, the crucial factor is what can be analysed from the data to create valuable insights for companies.
There are many ways that companies convert big data into value, predictive analysis, a method that looks at historical and current data to predict what will happen next is a very common form seen everyday. Such analysis allows companies to become recommendation engines, like Amazon, which suggests purchases based on prior interests of one customer as compared to millions of others. An algorithm that is useful to send targeting advertising to the customer on what specifically they are looking for, in the moment they are searching for it. An estimated 35% of all Amazon’s sales stem from their recommendation engine.
There is also use for big data for police, who are now using big data to create crime hotspots based on crime type, data, time and crime locations. Such maps will be heavily patrolled to combat crime and will allow police to predict where and when a crime will occur.
Police using crime maps to predict crime draws striking resemblance to the 2002 Spielberg movie, ‘Minority Report’. Where there was a pre crime system in society that would predict murders before they occurred and police would charge those individuals. However, the system is flawed as it doesn’t take into account human error and how people’s minds can change. In marketing terms this is the ‘filter bubble’ effect where statistical methods write off outliers. Although the movie is an extreme example, it does to an extent demonstrate both the potential power and faults of big data.
So what’s my opinion on big data? I feel that big data and the careful analysis of it for rich insights is a vital tool for companies to use. However, I feel that recommendation engines and targeted advertising breaches the line of invasiveness rather helpfulness. I find it creepy when something I haven’t even searched for but have messaged someone about, suddenly appears as a recommendation.
What do you think? Do you think big data and particularly recommendation engines are helpful? Or do you too find them to invasive? Let me know in the comments below!
Raph's Blog 
I think that big data has a lot of potential for marketer and businesses as it provides them with greater insight into their consumers habits. However, privacy is obviously an issue and it will be interesting to see how society will deal with big data in the future.
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Hi Henry, thanks for the comment. I agree that big data has big potential for providing vital insights to companies. Targeted advertising is taking advantage of consumer habits, albeit rather invasively (in my opinion). But many other consumers don’t seem to mind and find it useful to be recommended products or to informed about a new company that sells a product category that interests them. I believe our privacy will unfortunately be further exploited in the future as it will be too enticing for companies to ignore these consumer insights and miss the opportunity for greater revenue through targeted advertising. Furthermore, the government and law enforcement are more likely to use predictive analysis if algorithms and technology can advance to levels that will assist them in making areas safer. I hope they get it right though, we wouldn’t want to end up living as they do in the ‘Minority Report’ movie.
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That was really fascinating to hear how they could use big data to foresee a crime. i think big data can be very helpful, however I think there are more downsides to it like invasion of privacy, hence i am very curious to see how companies will market products that utilise big data to very sceptical consumers. How do you think they companies will market to those sceptical consumers about their products invading their privacy?
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Hi Dorian, thanks for the comment. I think it will be particularly difficult to market to sceptical consumers as privacy is a very thin line to some people. If crossed, these consumers may erupt and spread very negative thoughts via social media, WOM or even file a lawsuit. All of which would tarnish a companies brand equity. I think all consumers should be given the option of whether they are subjected to target advertising. Some websites already do, stating they use cookies and give the user an option whether they agree or don’t want to be tracked. If the consumer states they are not comfortable by clicking no to this option the company should respect their privacy and not further pursue to obtain any data from them or recommend products for them. This is by no means a perfect solution, but at least being open about data collection gives consumers an option and they can still feel somewhat in control.
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Interestingly, while I agree that harnessing consumer data and using it in such a way can be an invasion of privacy, we can definitely look at the positive sides – I actually kind of like seeing recommended products when shopping on websites like Amazon. For example, when I was looking at buying skincare products on Amazon one time, the recommended products were other skincare products I was also interested in, so it was a nice reminder to check out those products too and add them to my cart. It is creepy though how our devices “listen” to us and make very specifically targeted ads appear; I just try to think of it less personally, as in I’m just another person in a world of billions, and it’s all purely algorithms and technology rather than a person at the other end watching and listening to all my exact behaviours and conversations. It does pose an issue for some now, but do you think it’s something people will eventually get used to and not worry so much about in the future?
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Hi Jess, thanks for joining the conversation. That’s a very interesting view point that we are just individuals being analysed by algorithms amongst billions of others. In response to your question, I think people are already getting used to it or are simply not informed about it. Either way, whether people feel ignorance is bliss as they value the benefits or they unaware they are being tracked, it has found a way to be integrated into the norm. I think people are willing to trust certain companies or websites, such as Netflix, over other ‘dodgy’ websites with no positive reputations. As time goes on I believe that due to the convenience or helpfulness of targeted advertising people will trust just about every site. So i foresee a future were this is hardly worried about.
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Hey Raph, interesting post!! I understand why you would find it “creepy”, when you have advertisements directed at you of things you may have included in a message but I quite like it. In my opinion I would rather have advertisements of things that I’m actively seeking and interested in instead of random things that I wouldn’t find useful. Also companies rely on our data to enhance their performance. So my question to you is in your opinion, is there a way to reduce the feeling of a privacy breach from consumers when they are recipients of targeted advertising? Because in my opinion, I do think it’s a very important strategy.
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Hey Gede, thanks for joining the discussion. You raise an excellent question, I don’t have a perfect solution for you, but I’ll offer my thoughts. Giving all consumers the option to whether they are subjects of targeted advertising would help the situation. To elaborate, every website should clearly state to the visitor of the site that the company tracks and analyses the data of their consumers to enhance performance for them. With this message, consumers/visitors should be given the option of whether they would like their data to remain untracked and private or be analysed to fuel targeted recommendations. If they click the ‘no’ option to keep their data private, they could be redirected to a version of the website that won’t track their searches and activity for companies to analyse. By being transparent about their intentions I think this would greatly help in putting consumers at ease.
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