Analytics 3.0: The 'Need to Have' Analytics Imperative

If you're involved in marketing, you know things are changing quickly. What worked for decades now doesn't have the same responsiveness. New things are popping up each day. Consumers are listening to each other even more and relying less on traditional marketing. 

Interestingly, the metrics to guide and measure marketers have not kept up with these changes. 

Analytics 1.0 was the first wave of measurement solutions for marketers that included media mix, experimental design (where I started my career longer ago than I care to mention), panel data, diaries, etc. These tools have had a resilience that cockroaches would respect. 

However, the tipping point of increased sophistication in marketing measurement began several years ago. 

Analytics 1.0 was historically deployed at a junior level or from within research departments and was considered a 'nice to have'. It used backward-facing models, correlated media to sales, (usually in CPG and retail), and helped explain what had happened so planning could be improved. 

Then the Perfect Storm hit. Internet proliferation. Google. Facebook. Twitter. Amazon. More media options. Global competition and economy. And suddenly, Analytics 1.0 started to not work as well. 

CMOs quickly realized that they were going to need to drive their decisions in this increasing complex landscape through analytics. Analytics 2.0 was born: models and tools for the 'need to have' era for CMOs and CFOs. Forward-looking, cross-media patented techniques for measuring how the digital revolution actually amplifies the impacts of offline marketing. 

Those companies who realized it was time to move to 2.0 have grown quickly and efficiently. They saw that 1.0 had served its purpose, but that the tools they previously used did not match up to the new complex reality. And most importantly, they recognized that they needed proven results when talking to the CEO and the board.

What's next? Analytics 3.0 is underway now. Sophisticated solutions for total marketing attribution are now available. The ability to work with Big Data to create real time insights and course correction is a reality. Forward-thinking marketers are sleeping well at night knowing they have full transparency into what is truly driving their business, not just what their media agency told them. 

As the 'nice to have' shifts to a 'need to have' analytics imperative, don't be caught on the defensive – it’s time to leverage the data, computing power and algorithms that we didn't have even five years ago (much less 20 years ago when the Analytics 1.0 methods were created).  It is time to create a real marketing advantage for your business. The solution: moving from Analytics 1.0 to Analytics 2.0 and 3.0. As one of our Fortune 100 CMO clients put it, it’s their "secret weapon".

1. 06.09.2011

   Mitchell Caplan http://Mitchell Allan.tumble.com

   Great piece Wes. The key phrase is "forward looking". Too many marketers are still looking at data as a way to look in the rear view mirror, rather than as a way to course correct in real time and project optimal allocation going forward.

2. 06.13.2011

   Ty J. Levine

   Wes is correct. There are analytics for pieces to the business puzzle - pricing, lead generation, ad placement, ROI etc., but the real holy grail is to use comprehensive analytics in a truly integrated marketing function. Product Creation through market planning through sales should all get a seat at the analytics table. being able to think analytically at the same time thinking strategically is the win-win all marketers and CEO's strive for. The time has come it is now.

3. 07.07.2011

   Bill Lepler

   David Ogilvy in the early 1970's called direct marketing and it's measurability "my secret weapon". This is even before Analytics 1.0 and from a man who is known for pioneering mass advertising!